Payroll Firm’s Profits Slide 49% in 3rd Quarter
Pay-Fone Systems Inc., a Van Nuys-based payroll service company, reported that its fiscal third-quarter earnings plunged 49% on a 12% decline in revenue.
In the three months ended March 31, Pay-Fone Systems earned $139,000, compared to $276,000 a year ago. Its revenue totaled $1.3 million, down from $1.48 million.
The company said the decline in earnings resulted from lower revenues due to the sale and discontinuation of businesses outside California. It also set aside $85,000 as a provision for income taxes.
For the nine months ended March 31, earnings increased to $201,000 from $31,000 a year before, while revenue declined to $3.5 million from $4 million.
Pay-Fone Systems, which began doing business under the name of Precision Payroll in 1988, provides payroll services to more than 4,000 businesses.
More to Read
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
