A SHANNON-BASED internet security firm last year recorded pre-tax profits of $4.2 million, a drop of 76 per cent on profits recorded in 2006.

According to returns lodged by US-owned RSA Security Ireland to the Companies Office, the company's turnover last year increased by 38 per cent from $145 million in 2006 to $201 million last year.

The main factor behind the drop in profits from $17.6 million in 2006 to $4.2 million last year was a 55 per cent increase in "other operating expenses" from $109 million to $169 million.

This was due to a change that RSA Security Ireland made in a licensing agreement with a sister company, RSA Security Products Ltd.

The $4.2 million profit now results in accumulated profits of $18.9 million, while the company has $37 million in cash.

At year end, the directors approved a $15 million dividend pay-out to shareholders.

The company, whose principal activity is the manufacture, licensing and sale of electronic security solutions, employs 44 people at its Shannon operation and the staff costs last year were $3.1 million.

The largest proportion of the company's business is carried out in the EU with the UK accounting for $63 million and "other European countries" accounting for $92 million. Sales in Ireland amounted to $1.5 million, while sales in Australia accounted for $13.5 million and $30 million in the rest of the world.