Paychex 2nd Quarter 2009 Earnings

Paychex Reports Second Quarter Results

December 17, 2008 – Paychex, Inc. today announced net income of $140.2 million for the three months ended November 30, 2008, a 5% decrease from net income of $147.1 million for the same period last year. "Our revenue for the second quarter grew to $524.2 million, a 3% increase over $507.8 million for the same period last year. Operating income, net of certain items, for the second quarter increased 7%, and we continued to leverage expenses as operating income, net of certain items, as a percentage of service revenue improved well over 50 basis points compared to the same period last year," commented Jonathan J. Judge, President and Chief Executive Officer of Paychex.

Paychex Inc late Wednesday reported its fiscal second-quarter net income fell to $140.2 million, or 39 cents a share, from $147.1 million, or 40 cents a share, in the same quarter last year. Revenue increased to $524.2 million from $507.8 million a year earlier, said the payroll and human resources services company. Analysts surveyed by FactSet Research had forecast earnings of 40 cents a share on revenue of $530.4 million. The company also said it revised its fiscal 2009 outlook to reflect the current economic and financial conditions, and projected the economic weakness to continue through the remainder of the fiscal year. The company now expects revenue growth of 2% to 4% and net income decline of 7% to 5%