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.