Saturday 19 January 2019

Contrasting fortunes for HP's two units in Ireland

Photo: Bloomberg
Photo: Bloomberg

Gordon Deegan

Two Irish units of computer giant Hewlett Packard enjoyed contrasting fortunes last year.

Accounts filed by Hewlett Packard Galway Ltd show that it recorded an 80pc drop in pre-tax profits, from $2.93m to $637,064.

The firm made a post-tax loss of $327,282 as a result of corporation tax of $964,346.

This followed a post-tax profit of $2.45m in 2016.

The drop in profit at the company followed revenues decreasing by 73pc, going from $297.33m to $78.55m.

The drop in revenues arose from a reorganisation of Hewlett Packard group in Ireland that resulted in a reduction in the unit's activities.

However, the research and development (R&D) activity on site has continued to expand with many of the development teams focused on next-generation platforms - in particular cloud computing - becoming a core activity of the company.

The company's R&D costs last year totalled $25.49m compared to R&D costs of $33.25m in 2016. The loss included non-cash impairment costs of $3m.

The reorganisation of the HP group resulted in numbers employed at the firm last year reducing from 595 to 324.

In contrast, pre-tax losses at a connected firm, Hewlett Packard Enterprise Ireland, last year reduced from $4.5m to $23,981. This followed revenues decreasing by 31pc, from $275m to $189m as the firm was also affected by the HP reorganisation here.

Irish Independent

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