Mentor Graphics pre-tax profits jump to $81.3m

Pre-tax profits at a Shannon-based holding company for Mentor Graphics (Holdings) Ltd last year increased almost fourfold to $81.3m (€61.2m).

According to accounts lodged by the US-owned firm with the Companies Office, the holding company’s turnover increased by 13% from $347.8m to $393.2m in the 12 months to the end of January last year.

The company is headquartered in Oregon in the US and employs 4,700 worldwide and is engaged in electronic design automation. The revenues generated by the Irish company represent 43% of the firm’s global revenues in fiscal 2011.

The company’s Irish base in the Shannon Free Zone is 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 accounts for Mentor Graphics (Holdings) Ltd, which is the holding company for the group’s operations in Europe, Middle East and Africa and Asia/Pacific region, show that the holding firm’s operating profits increased from $21m in 2010 to $81m in 2011.

The directors state that they “are satisfied with the group’s performance during the year”.

The firm had accumulated profits of $154.3m at the end of 2011. Its shareholder funds of $192.5m included $62.7m in cash. The profit last year includes non-cash depreciation costs of $11.4m and $8.6m in amortisation costs.

The figures show the numbers employed by the holding company increased last year from 1,971 to 2,257 with staff costs increasing by 15% to $171.4m.

The company spent $148.3m on R&D; $71.3m on selling expenses; $39.3m on administrative expenses and $22m on marketing expenses. The company’s cost of sales last year declined from $57.1m to $28.3m with net operating expenses increasing from $269.4m to $285.2m.