Oracle’s Irish arm nets €92m profit
This followed revenues at Oracle EMEA Ltd increasing by 26% from €5.57bn to €7bn in the 12 months to the end of May 31, 2012.
The revenues recorded by the Irish unit accounted for 24% of Oracle’s global revenues last year of $37.2bn (€28.8bn). The profit last year follows pre-tax losses of €39.1m in 2011.
The firm’s principal activities comprise the manufacture and sale of computer hardware and software products in the European, Middle Eastern and African market, with translation, finance and marketing services.
“The trading results of the company continued to be strong with a 26% growth in turnover. The company earned a profit in the current year and our expectation is that the company will continue to trade successfully and remain profitable in future periods,” according to the directors’ report.
The report states that a significant element of the growth was attributable to sales of hardware systems products and hardware systems support, arising from the acquisition of Microsystems.
“Additionally, there was continued growth in our software license updates and product support business due to a further increase in our support contract base and high renewal rates,” it read.
The directors attribute the return to profit due to the increase in turnover and normalisation of costs.
The Dublin-based firm paid a dividend on €200m in 2011 but did not pay a dividend last year.
The filings show that the firm’s tax liability for the year was €57m, with €48m of that amount attributable to foreign tax.
The numbers employed by the company increased from 1,026 to 1,094 with 673 in sales and marketing; 178 in manufacturing and software development; 176 in finance and administration and 67 in product localisation and translation. Staff costs last year rose from €76.2m to €83.4m.
The profit last year takes account of combined non-cash depreciation and amortisation costs of €42m. Research and development costs totalled €44.4m. A capital contribution of €2bn resulted in the firm having €2bn in shareholder funds at the end of May last.
