Cork-based McAfee reports 52% surge in pretax profit

PRETAX PROFITS at an Irish unit of US security software maker McAfee increased last year by more than 50 per cent to €21 million.

Accounts just filed with the Companies Office show the Cork-based McAfee Ireland Ltd increased its pretax profits by 52 per cent to the end of December last year, after increasing turnover by 5 per cent from €323.7 million to €340.6 million.

McAfee, currently the subject of a $7.68 billion (€5.6 billion) takeover by Intel, has a number of subsidiaries in Ireland relating to its business across Europe, the Middle East and Africa (EMEA).

The accounts for McAfee Ireland broadly reflect activity at its EMEA headquarters in Cork, where the company employs in excess of 300 staff.

McAfee Ireland’s profits last year reduced the company’s accumulated losses from €71.8 million to €53.3 million.

McAfee – which established its Irish operations in 2004 – produces a series of security solutions including anti-virus, anti-spyware, anti-spam and intrusion prevention.

The company’s cost of sales increased from €17.3 million to €20.9 million, while its administrative expenses increased from €293.8 million to €298.9 million.

The accounts show that the company’s operating profits increased by 65 per cent from €12.49 million to €20.7 million.

An analysis of the company’s turnover shows that €228.9 million was generated in EU countries, with €111.6 million in non-EU countries.

The figures show the firm’s staff costs last year increased by 15 per cent, from €7.4 million to €8.5 million.

Functions carried out at the Cork base include finance, procurement, localisation, order processing and customer care for its network of resellers.

The figures show that remuneration for the company’s directors remained at the same level last year at €516,643.

The accounts reveal that, during the year, the company incurred costs of €6.8 million on product research.

The ultimate parent company is McAfee Inc, a Californian company quoted on the New York Stock Exchange.

It has more than 6,100 staff and had revenues of $1.92 billion (€1.4 billion) in 2009.

Last year, McAfee confirmed that 11 sites in Europe had been considered before Cork was chosen for the investment.