Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from the line of Julio Quinteros – Goldman Sachs
Julio Quinteros – Goldman Sachs
Can you go back through just one comment, as you were talking about the checks per client growth there was a 10% number you cited as well, what was that number about?
John Morphy
Basically out of business and no longer having any employees, that loss is up about 10%. That’s about where it was at the end of last fiscal—during the quarter it got a little bit worse, not much, like 10% might have went to 11%. But enough that we felt a little bit of a revenue hit. Checks per client is what we’ve experienced over the last 12 months, we feel pretty good about that. In fiscal 2002 and 2003 that number moved four. We continue to see this environment where those who are in trouble, have lots of problems and those who are okay seem to be hanging in there pretty good.
Julio Quinteros – Goldman Sachs
On the client base growth, I think coming out of the last fiscal year you were running around 2% just based on the last notes that we’re looking at here, how did that finish this quarter and how do you expect that to ramp going forward from here?
John Morphy
We only disclose that once a year and hopefully it will be better then that but we might not be based on new business starts when we get down to the end of the year. Anything now is purely conjecture because the real period that this makes a difference on is in the selling season which really happens in December, January and February.
Operator
Your next question comes from the line of Adam Frisch – UBS
Adam Frisch – UBS
MMS you made some fairly positive comments on and I don’t think you’ve broken out explicitly the revenue contribution there in the last couple of years, but can you give us a sense of what payroll services growth would have looked like without MMS?
John Morphy
That would be breaking it out wouldn’t it? Nice try. We don’t just not give it because we just don’t want to give it; really the payroll business as MMS is developed is a 15 over business. We had 15 over business in core before we set up MMS. A third of the MMS clients come from core which we actually actively convert them when we think a client would benefit from the upgrade and we also sell more services into them whether it’s HR online, [Benetrack], those things. So the MMS offering—we spend a lot of time in making the product line broader. It’s working very well. We’re very competitive but we still look at this, its all payroll.
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