Avocent makes return to profit
The turnaround for the Shannon-based Avocent International Ltd occurred in spite of revenues more than halving from $153.4m to $76.4m last year.
The company recorded a pre-tax loss of $25.2m in 2009.
However, the figures are skewed as the 2010 figures are for nine months to the end of September 2010 compared with the 12-month accounting period for 2009.
The company employs 107 people in Shannon and profits were boosted by a $16m gain on the transfer of a business segment to a connected company.
The firm’s principal activity is the development, manufacture, distribution, sales and marketing of IT solution products for the European, Middle East, African and Asian markets.
The company recorded an operating profit last year of $6.6m compared with an operating loss of $26.3m in 2009. Profits were also boosted by $1.5m in interest income, compared to $2.1m in interest income in 2009.
Accounts for 2009 confirmed that businessman Kieran MacSweeney received a pay-off of over $450,000 on stepping down as managing director of the IT firm in that year.
Staff costs last year dropped from $10.2m to $7.2m, while remuneration for management services totalled $475,182 compared to $882,406 in 2009.
In relation to the company’s future developments, the directors’ report states that “as a result of group-led acquisitions and restructuring, the company expects to expand its offering to customers in the form of hardware and software, which will contribute to revenues and profitability in the future”.
Some $71.5m of the $76.4m in revenues was recorded within the EMEA region last year with $3m in Asia and $1.7m in “other”.
The company’s cost of sales last year dropped from $56.8m to $35.3m, with the company’s net operating expenses dropping from $122.9m to $34.5m.
The company paid corporation tax last year of $4.7m compared to a tax credit of $2.5m in 2009.
CONNECT WITH US TODAY
Be the first to know the latest news and updates
