IT firm’s revenues rise to $100m

Operating profits at the main Irish unit of US firm Avocent last year increased by 34% to $8.8m (€6.7m).

The increase in operating profit occurred after revenues rose 30% at the Shannon-based IT firm, from $76.4m to $99.5m, in the 12 months to the end of September last.

However, the prior period covered only nine months. The accounts show pre-tax profits tumbled by 67%, from $24.5m to $7.9m last year.

The year 2010 benefited from a $16.4m gain on a disposal of a business segment and that did not recur in 2011.

Avocent employs 105 people at its Shannon base and its principal activities are the development, manufacture, distribution, sales and marketing of IT solutions products for the European, Middle East, African, and Asian markets.

On Avocent’s revenues and operating profits, the directors state that “the operating margin percentage was consistent in both periods. The directors regard this is as a satisfactory result in the current environment.”

They say that “as a result of new product developments, the company expects to expand its offering to customers in the form of hardware, software, and services which will contribute to revenues and profitability in the future”.

The figures show that the profit reduced the firm’s accumulated losses to $7.4m. Avocent’s profits were hit by interest payments totalling $893,535 compared to interest received of $1.5m in 2010.

The firm had total shareholder funds amounting to $68.2m at the end of last year as cash increased from $3m to $26.8m.