Adobe’s Irish arm generates $2.3bn

Pre-tax profits at the main Irish unit of US software giant Adobe last year increased by 2% to $540.5m (€417.7m) as revenues topped $2.3bn (€1.79bn).

The filings by Adobe Software Trading Company Ltd with the Companies Office show that revenues increased by 13% from $2bn to $2.3bn in the 12 months to the end of Dec 2 last.

The company, based at Citywest, Dublin, is the intermediary holding company for Adobe’s subsidiaries based in Europe, Africa, and the Asia-Pacific regions.

The revenues generated by the Irish unit represent 55% of Adobe’s worldwide revenues of $4.2bn in the year to the end of Dec 2.

The company’s after-tax profit was $464.5m. The profit recorded last year resulted in accumulated profits of $2.24bn.

Adobe’s directors state that the revenue rise is “as a result of improvements in the international economic environment, new product releases, and new business unit revenue streams”.

They said operating margins fell to 22% from 25% in 2010 and they are satisfied with the results.

The accounts show that Adobe’s operating profit last year increased from $513.7m to $516.4m; cost of sales increased by 36%, from $310m to $398m, and the firm’s administrative expenses fell from $276.8m to $255.4m.

Adobe’s distribution expenses increased from $948m to $1.14bn.

Numbers employed by the company last year increased from 1,830 to 2,212. Staff costs rose to $432.4m — a 26% increase on the $341.4m paid out in 2010.

Adobe incurred non-cash costs of depreciation and amortisation totalling $235.8m.

The accounts state that the principal activity of the holding company is research and development activities, and the licensing, production, and distribution of computer software for markets outside of the US, Canada, and Mexico.

The Irish business has investments in 30 subsidiaries around the world in locations including Singapore, Canada, Australia, China, South Korea, Japan, Turkey, Brazil, South Africa, and 10 EU states.