Profits fall 85pc as Adobe changes its business model
Pre-tax profits at the main Irish unit of US software giant, Adobe last year decreased by 85pc to $70.4m (€55.4m)
New figures show that Adobe Software Trading Company Ltd and subsidiaries recorded the sharp drop in profit from $490.8m as revenues dipped by 11pc from $2.27bn to $2.02bn in the 12 months to the end of November 29 last.
The company - with an address at Citywest, Dublin - is the intermediate holding company for Adobe's subsidiaries based in Europe, Africa and the Asia Pacific regions.
Numbers employed last year increased from 2,526 to 2,790.
The revenues generated by Adobe's Irish unit represent 50pc of the company's worldwide revenues of $4.06bn.
The Irish based company paid taxes totalling $59m compared to $54.1m in tax in 2012.
The company's after-tax profit was $11.4m last year. The profit recorded last year resulted in accumulated profits of $2.66bn.
The company's directors state that "revenue decreased by 11pc in the period as a result of the continued successful migration of the business from selling perpetual licenses to a subscription and rate-away revenue model".
The directors state that this "results in a short term depression of revenue which will reverse over time".
The directors state that they are happy with the performance of the group for the period.
Cost of sales decreased by 8.5pc from $398m to $364m while the firm's administrative expenses increased to $301.7m.
Distribution expenses increased from $1.135bn to $1.21bn.
Combined non-cash costs of depreciation and amortisation totaled $224.4m.