Novell profits triple as Irish tech units continue to prosper
Pre-tax profits at the Irish arm of software firm Novell Software almost tripled to $93m (€68.9m) last year.
According to accounts just filed with the Companies Office, the firm recorded the increase in profits after revenues more than doubled from €122.39m to €273.48m in the 12 months to the end of March 2013.
The chief factor behind the increase in profit and revenues was the firm's financial period last year covering a 12-month period – with the prior accounting period covering only five months.
The figures show that the firm's profits were boosted by an exceptional gain of $12.95m from the profit after sale of fixed assets.
According to the directors' report, "turnover has decreased versus prior period when annualised; this is primarily due to the current global economic climate. There are no significant increase in forecast revenues for 2014".
The report states that: "Cost of sales and distribution costs have decreased in line with the decrease in turnover once annualised. Administrative expenses have also decreased, once annualised, due to cost-saving initiatives. There are no significant increases in forecast costs for 2014."
The firm's cost of sales last year increased from €73.6m to €163.3m, with administrative expenses increasing from €11.94m to €20.16m.
The company acts as the principal for the Novell group operations in the Europe Middle East and Africa (EMEA) territories. The firm develops, sells and installs enterprise quality software that is positioned in the operating systems and infrastructure software layers of the information technology industry. The figures show that operating profits at the firm last year increased by 146pc from €32.53m to €80m.
Numbers employed at the firm last year decreased from 104 to 97 even as staff costs increased from $4.1m to $6.7m.
A breakdown in staff numbers showed 28 operating in sales support; 29 in finance; 18 in 'other'; 12 in licence management support and 10 in globalisation services.
The directors' remuneration last year increased from $97,228 to $190,757.
On the risks facing the company, the directors state: "We are aware of the challenges of the current global economic climate and have made appropriate operational changes."
Novell is the latest in a long line of technology firms whose Irish arms have posted enormous profits in recent years.