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Paychex moved forward in single-digit increases in net income, payroll revenue and total revenue for the third quarter ended February. The company also said this week that client retention remains at near-record levels as it completed its peak selling season for payroll services during the current fiscal year. Net income reached $144.5 million, up 7 percent from $135.4 million in last year's corresponding period. Payroll service revenue rose by 2 percent to $393.7 million, compared to $386.5 million a year earlier. Total revenue of $593.3 million was 4-percent higher than the $569.5 million in the same period of fiscal 2012.

CEO Martin Mucci said in a prepared statement that Paychex is continuing to invest in SaaS and mobile technology through product development and acquisitions. He also said the company's SurePayroll operations, which offer SaaS-based payroll services, continues to perform well, although he did not provide specific figures.

Mucci attributed the client retention levels to a focus on new and enhanced technology coupled with what he called "our outstanding service model."

Paychex issued guidance for results for the year ending May 31 saying its expects an increase in payroll services revenue ranging from 2 percent to 3 percent with HR service revenue projected to rise by 9 percent to 11 percent over the prior year. Net income should increase by 5 percent to 7 percent.

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