McAfee pre-tax profits drop 7% despite revenue hike

PRE-TAX profits at the main Irish unit of US security software maker, McAfee last year decreased by 7% to €20 million even after an increase in revenues.

Accounts just filed with the Companies Office show Cork-based McAfee Ireland Ltd increased its revenues by 8% from €340.6m to €368.6m in the 12 months to end of December last.

Earlier this year, McAfee, which has its headquarters for its operations in Europe, the Middle East and Africa (EMEA) in Cork, announced the creation of an additional 30 high-quality R&D jobs at its Cork base.

This is in addition to 120 jobs announced by McAfee for Cork last year.

In August of last year, Intel agreed to buy McAfee’s global operation for $7.68 billion (€5.6bn) in cash to boost its security offerings.

McAfee Ireland’s profits last year reduced the company’s accumulated losses from €53.9m to €35.9m.

McAfee – which established its Irish operations in 2004 — provides a series of security solutions which include anti-virus, anti-spyware, anti-spam and intrusion prevention.

The company’s cost of sales increased from €20.9m to €31.5m, while its administrative expenses increased from €298.9m to €317.9m.

The accounts show that the company’s operating profits decreased by 8% from €20.7m to €19m.

The company’s pre-tax profits were boosted by €937,210 in interest receivable. The accounts also include a non-cash depreciation charge of €741,623.

The company’s turnover shows 224.1m generated in EU countries with €144.4m in non-EU countries.

The numbers employed by the firm last year increased by 47% from 178 to 263 with 94 engaged in administration and 63 in technical support.

Staff costs last year rose from €8.5m to €9.5m.