Profits and revenues dip at HP's unit in Galway
Published 05/10/2016 | 02:30
Pre-tax profits at the Galway-based unit of computer giant Hewlett Packard (HP) more than halved last year as revenues decreased by $51m.
According to new accounts filed by Hewlett Packard Galway, pre-tax profits fell from $1.79m to $869,018 (€775,389)
Revenues fell from $413.79m to $362.85m in the 12 months to the end of October 31 last year.
Numbers employed increased from 487 to 584 last year with staff costs declining from $44.7m to $43.69m.
The figures show that research and development (R&D) spending increased marginally from $30.5m to $30.7m.
According to the directors' report "the R&D activity on site has continued to expand with many of these development teams focused on next generation platforms -in particular cloud computing."
The report adds: "Software services business lines continued to perform well, supporting a world wide customer base.
"In the coming financial year, the company will continue to look for further opportunities to demonstrate the value it can deliver for Hewlett Packard businesses and projects across the globe."
The directors also state that the company has continued to develop from its manufacturing heritage to be a campus for software business lines with strategic planning and continuous innovation by the site management team and employees driving new business offerings to replace those that have matured naturally and declined."
In April of last year, Taoiseach, Enda Kenny opened HP's new 87,000 sq ft innovation centre at Ballybrit, Galway. HP stated at the time hat the facility confirms Galway's status as a "centre of excellence within HP globally".
The firm's cost of sales last year totalled $352m and as a result of the high cost of sales and resulting low level of pre-tax profits, the firm's corporate tax bill for the year totalled $414,386 and this followed a tax bill of $1.45m in 2014.
HP has been in Ireland for the past 45 years with the firm investing over $1bn in Ireland over the past 20 years.
The principal activity of the Galway firm is the manufacture of computer software and computer documentation which is exported mainly from Ireland and R&D activities.
Remuneration for directors last year increased from $487,906 to $567,114. The firm recorded the profit after taking into account non-cash depreciation costs of $1.1m and a foreign exchange loss of $456,252.