Irish-based US firm records profits of €31m

AN Irish-based US multinational that provides technology to the international space station recorded pre-tax profits last year of $45 million (€31m) after increasing revenues by 10%.

Microsemi’s Irish base in Ennis, Co Clare is the largest unit in the global corporation in terms of revenues and increased sales to $86m in the 12 months to the beginning of October.

Microsemi Ireland Trading Ltd’s finance director, Paul O’Brien, explained yesterday that the figure represented just nine months of manufacturing business due to a change in how the company’s figures are presented. On an annualised basis, the manufacturing business would have recorded pre-tax profits of $66m on revenues of $115m.

The company employs 265 people in Ennis and 40% of its products are made for space. It has supplied technology to the international space station and NASA’s defunct shuttle programme. The facility is subject to annual audits by NASA.

Over the past three years, Microsemi has invested $25m in the Ennis plant, representing a turnaround following a 2005 decision by Microsemi to shut down the facility, when it employed 60.

Managing director at the Ennis plant, Richard Finn said yesterday that the results for 2010 are strong “but they are in line with expectation from our corporation”.

Mr Finn added that the company’s performance to date this year “is in line with last year”.

“The business is completely transformed from five to six years ago, when we were doing a cost plus sub-contract model. We were a small-scale manufacturing operation, down to 60 people, recording revenues of $12m to $15m.”

Last year, the Ennis facility had staff costs of $8.8m. The company did not pay a dividend last year and has accumulated profits of $37m.

Mr O’Brien said: “We’re looking to invest more money back into the business here and try to make it more attractive for the corporation to transfer more business through the Ennis facility and from that you would have more jobs down the line, but nothing is dialled in at the moment.”

Worldwide, Microsemi employs 2,800 and last year the company recorded sales of $452.9m — 35% of the group’s sales are made from defence and security, though no such products are made in Ennis.