Operating profit at Irish unit of Avocent up

OPERATING PROFITS at the main Irish unit of US IT firm Avocent last year increased by 34 per cent to $8.8 million (€6.7 million), new figures show.

The increase in operating profit occurred after revenues increased by 30 per cent at the Shannon-based firm from $76.4 million to $99.5 million in the 12 months to the end of September last. However, the prior period covered only nine months.

The accounts show pre-tax profits tumbled by 67 per cent from $24.5 million to $7.9 million last year. However, in 2010 the firm benefited from a $16.4 million gain on a disposal of a business segment.

The unit employs 105 people at its Shannon base and its principal activity is the development, manufacture, distribution, sales and marketing of IT solutions products for the European, Middle East, Africa and Asian markets.

The figures show the profits reduced the firm’s accumulated losses to $7.4 million.

The company’s profits were hit by interest payments totalling $893,535 compared to interest received of $1.5 million in 2010.

The firm had total shareholder funds amounting to $68.2 million at the end of last year. The firm’s cash during the year increased from $3 million to $26.8 million.

The firm’s two directors are listed as Frank Woods and Stephen Ryan, and the figures show directors’ remuneration, including pension costs last year, climbed from $488,986 in the nine-month period to $587,720.

The filings show the company’s spend on research and development rose from $11.2 million to $12.1 million last year.

The company paid corporation tax last year of $1.2 million after a tax payout of $4.7 million in 2010.