Pre-tax profits at Symantec decline by 52% to €34.9m

PRE-tax profits at the Irish arm of security software solution provider, Symantec last year declined by 52% to €34.9 million, despite revenues climbing to €1.43 billion, new accounts show.

According to accounts just filed by Symantec Ltd, the €37.8m drop in pre-tax profits is mainly attributable to foreign currency gains declining from €50m in 2010 to €17m in the 12 months to the end of April 1 last year.

The figures show the Dublin-based company’s turnover increased by 5% or €74.8m from €1.36bn to €1.43bn last year.

The numbers employed by the unit last year declined from 725 to 692.

The revenues represent 29.6% of Symantec’s €4.8bn revenues recorded globally last year.

The figures show the Irish unit’s gross profit last year increased by 10% or €65.4m to €736m with the directors’ report stating the company’s gross margin was 51% in 2011 compared to 49% in 2010.

The company’s cost of sales increased marginally from €691.3m to €700.7m while distribution costs increased from €514.9m to €556.1m with administrative expenses increasing from €132.1m to €151.8m.

Profits were also hit by a €9.4m impairment on investments. Operating profit more than halved last year from €73.3m to €35.4m.

The profits last year take account of €54m in combined non-cash depreciation and amortisation costs. The figures show that in spite of the drop in numbers employed at the firm, the company’s staff costs last year increased marginally from €45.7m to €45.8m.

The figures show 425 are engaged in selling, marketing and administration with 267 in development and support.

The profits last year resulted in accumulated profits of €106.7m. The company had shareholder funds totalling €115.5m that included €61.3m in cash.

The directors’ report states that in August 2010, Symantec purchased certain assets and liabilities of the identity and authentication business of VeriSign.

“The directors do not anticipate any other changes in the nature of the business in the forthcoming year,” the report states.

Symantec provides content and network security software. The filings also relate to subsidiaries in the US, Australia, Belgium and Denmark.