Pre-tax profits at Irish holding company for Mentor fall 7%

PRE-TAX profits at the Shannon-based holding company for US-owned Mentor Graphics (Holdings) Ltd, fell 7% last year.

Accounts lodged by the US-owned firm with the Companies Office, show the holding company’s pre-tax profits fell to $20.9 million (€15.5m). Turnover decreased 4% from $363.7m to $347.8m in the 12 months to the end of January last year.

The company, which is engaged in electronic design automation, is headquartered in Oregon and employs 4,450 people worldwide.

The revenues recorded at the Shannon unit accounted for 43% of Mentor’s global sales of $803m last year.

Its base in the Shannon Free Zone acts as its International Services and Distribution centre for information technology, order fulfilment, finance, purchasing, facilities, consulting, customer support, legal and human resources for the European, Middle Eastern and Asian business.

The firm’s operating profits fell from $22m to $21m in 2010.

A directors’ report attached to the accounts state that they are satisfied with the group’s performance during the year and that the group intends to further develop its activities over the coming year.

The company’s gross margin last year declined to 83.5% from 90% in 2009.

The company employs 1,971 people with 1,189 engaged in research and development, 370 in sales and marketing, 334 in administration and 78 in management. Staff costs decreased last year from $154m to $144.9m. The company paid no dividend to the end of January last year.

The holding company’s subsidiaries are located in Ireland, Britain, Holland, Germany, Egypt, Switzerland, Finland, Sweden, France, Spain, Singapore, India, China, Poland, Hungary and Pakistan.