Trend Micro profits treble

THE Irish arm of computer anti-virus software manufacturer, Trend Micro, saw a three-fold increase in pre-tax profits to €17.6 million last year.

Accounts filed with the Companies Registration Office show revenues at the Cork-based Trend Micro (EMEA) Ltd and subsidiaries more than doubled last year to €156.9m to the end of December last.

Last year the Japanese internet content security firm announced the creation of 100 jobs in Cork following the company taking responsibility for its European, African and Middle East markets (EMEA) markets.

The numbers employed by the firm increased from 255 to 316.

Profits were boosted by €2.8m in profits secured from the sale of intellectual property rights. According to the directors, the securing of selling and distribution rights of Trend Micro products in the EMEA “resulted in a significant increase in turnover and profitability for the company in 2009”.

The figures show that the company increased its operating profit by 514% from €795,000 to €4.88m.

The main factor behind the increase in pre-tax profits was interest payments received totalling €10.5m, compared with €8.8m in 2008.

Operating costs significantly increased from €28.2m to €91m, with administrative expenses increasing from €24.4m to €37.8m, and sales and marketing expenses up from €20.7m to €23m.

The company paid tax of €3.8m last year and its after-tax profits of €13.7m resulted in accumulated profits of €13.8m.

The company had €114.6m in cash at the end of last year, but creditors — mainly Trend Micro subsidiaries — accounting for €135m.

The company — based at the IDA Business Park at the Model Farm Rd in Cork — increased its sales and marketing staff from 122 to 149 last year, with ‘other’ increasing from 130 to 164. Staff costs increased by 24%, from €20.4m to €25.3m.

Turnover included 150.2m in sales of goods and services and service fee income of €6.6m.

The accounts show that the directors’ remuneration increased by 115% from €529,000 to €1.1m.

The directors point out that “the market for anti-virus software is highly competitive. If the group is unable to effectively compete in this market, its results of operations could be adversely affected”.

In a post balance sheet event, Trend Micro confirm that in June 2010, it acquired the entire share capital of UK-based Humyo.com Ltd, a next generation online back-up company.

Globally, Trend Micro employ over 4,434 people and last year had global revenues of $1.029bn (€777m).