Business World

Thursday 28 August 2014

Pre-tax profits rise at McAfee's Irish arm

Gordon Deegan

Published 01/10/2013 | 05:00

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Pre-tax profits at the main Irish unit of software maker McAfee jumped 9pc last year – the same year that saw the founder of the anti-virus company that bears his name go on the run following the death of a neighbour.

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The McAfee company, which is now a unit of Intel, saw pre-tax profit at the Irish division rise 2pc to €23.4m last year as revenues climbed to €390m.

Accounts just filed show that Cork-based McAfee Ireland continues to add to its Irish workforce with 29 jobs added, bringing the total to 338.

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.

The company was founded by anti-virus software guru John McAfee in 1989 but he went into hiding in the former pirate haven of Belize last year following the murder of fellow American Gregory Faull, with whom Mr McAfee had quarrelled. Despite his disappearance, 67-year-old Mr McAfee remained in contact with the media until his arrest and deportation.

According to the directors' report for 2012, the Irish 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 31pc to 34pc through 2012.

The firm's spend on R&D during last year totalled €9.1m compared to €5.4m in 2011.

McAfee – which established its Irish operations in 2004 – provides a series of security solutions include anti-virus, anti-spyware, anti-spam and intrusion prevention.

The profits last year resulted in the firm having accumulated profits of €8.3m with shareholder funds standing at €10.1m. The company's cost of sales decreased from €262.9m to €257m.

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

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