Xilinx pre-tax profits fall 43%

Pre-tax profits at the Irish arm of US technology giant Xilinx last year decreased by 43% to $16.5m (€12.1m), new figures show.

According to accounts just filed by Xilinx Ireland, the Dublin-based firm recorded the drop in profits after revenues decreased by 3% from $646.3m to $624.1m in the 12 months to the end of March 31st last year.

According to the directors’ report “after significant growth last year turnover was broadly stable in the 2012 financial year at $624m, decreasing only slightly in the year. The decrease in turnover was mainly due to a small decline in sales of Mainstream, Base, and Support products, primarily in the communications end market.”

The report states: “Overall, the directors are pleased with the performance for the year and look forward to expanded opportunities in the 2013 financial year. The directors expect the current business model will ensure that the company is profitable on an ongoing basis.”

The revenues generated by Xilinx Ireland accounted for 28% of the company’s global revenues of $2.24bn in fiscal 2012. It has paid out over $2bn in dividends to its US parent between 1999 and 2011 and in fiscal 2012 paid out an additional $50m.

The directors state that the firm’s pre-tax profits was 2.6% of revenues and was reduced on 2011 (4.5%) “but in line with expectations”.

The directors state that “the change in the year is largely driven by one off-items in 2011 and unfavourable foreign exchange movements, year on year”.

The company’s accumulated profits at Mar 31 last stood at $132.5m, with shareholder funds standing at $143.6m. Cash reduced from $19.2m to $9.7m.The profits take account of non-cash depreciation costs of $4.55m. Cost of sales fell from $542.4m to $518.6m.