Slight increase in security firm McAfee’s Irish profits

Pre-tax profits at the main Irish unit of US security software maker, McAfee, last year rose marginally to €23.6m.

In accounts filed with the Companies Office, the Cork-based McAfee Ireland Ltd increased its revenues by 1% from €390.2m to €393.4m in the 12 months to the end of December last year.

In 2012, McAfee, which has its headquarters for its operations in Europe, the Middle East, and Africa in Cork, announced the creation of a 30 R&D jobs at its Cork base.

Numbers employed there last year decreased from 338 to 332.

In February 2011, Intel agreed to buy McAfee’s global operation for $7.68bn (€5.6bn) in cash in an effort to boost its security offerings.

According to the directors’ report for 2013 for McAfee Ireland Ltd, the firm increased its pre-tax profits “as a result of both improved turnover and operating margin”.

The directors state that the firm’s gross margin increased from 34% to 38% through 2013.

The firm’s spend on R&D during last year totalled €9.67m compared to €9.1m in 2012.

McAfee, which established its Irish operations in 2004, provides security solutions, including anti-virus, anti-spyware, anti-spam, and intrusion prevention.

The profits last year resulted in the firm having accumulated profits of €29.37m, with shareholder funds at €31.1m.

The company’s cost of sales fell from €257m to €244m, while its administrative expenses increased from €110m to €126m.

The accounts show that the company’s operating profits increased by 5% from €22.2m to €23.8m.

The firm’s interest receivable last year reduced by over 80%, going from €1.19m to €219,377

The profit was recorded after a non-cash depreciation charge of €1m.

An analysis of the company’s turnover shows that €222m was generated in EU countries, with €171m in non-EU countries.

The figures show the numbers employed by the firm last year fell from 338 to 332, with 114 engaged in sales and marketing, 113 in technical support, and 114 in sales and marketing.

Staff costs last year rose from €24m to €24.2m.

Functions carried out at the Cork base include finance, procurement, localisation, order processing and customer care for its network of resellers.

The figures show that remuneration for the company’s directors, Timothy Daly, Paul Walsh, Edward Hayden, and Jonathan Park, rose last year from €877,320 to €1.055m.