Software firm’s profits rise to €7.3m

Pre-tax profits at Shannon-based multinational Mentor Graphics (Ireland) increased by 4% to $9.6m (€7.3m) in its last financial year.

Recently filed accounts for the US-owned software firm show a 27% rise in revenues — from $376.9m to $478.2m — in the 12 months to the end of Jan 2012.

The figures show that the firm’s tax bill went down from $3.1m to $1.6m in spite of the increase in revenues and profits.

The principal activity of the firm is to localise and distribute software and services to the European, Middle Eastern and African markets.

Mentor’s Irish base in the Shannon Free Zone acts as the company’s international services and distribution centre for IT, order fulfilment, finance, purchasing, facilities, consulting, customer support, legal and human resources for the EMEA business.

The Oregon-headquartered company employs 4,700 worldwide and is engaged in electronic design automation. The revenues generated by the Irish division represent 47% of the firm’s global revenues of €1bn.

The directors state it is their intention to continue to develop the current activities of the company, adding that they are satisfied with the performance of the firm during the year.

The figures show that the numbers employed by the Shannon-based company increased last year from 400 to 412, with staff costs rising from €41.2m to €45.5m.

Some 203 people were engaged in production and research and development; 104 in administration; 72 in sales and marketing and 33 in management.

The accounts also show Mentor spent $18.5m on selling expenses and $45.8m on administrative expenses.

The company’s cost of sales last year increased from $304m to $403.3m with net operating expenses increasing from $63.3m to $65m.