A SHANNON-based IT firm that cut back its workforce by one-third in July last year paid out a dividend of $28 million (€19.5 million) to its parent in 2008, new accounts show.
In July 2008, US-owned Avocent International Ltd announced cutbacks of 57 jobs at its Shannon plant, with a further seven staff members losing their jobs at the company’s Dublin office.
Now, accounts just returned to the Companies Office show that Avocent paid out a dividend in 2008 of $28 million – this followed the company paying of a dividend of $33 million in 2007.
The move to cut the jobs ended the company’s research and development capability at its Shannon Free Zone base.
The filings show that in spite of the Shannon unit increasing its turnover last year by 2 per cent from $202.8 million to $207.5 million, the company sustained a 10 per cent drop in pre-tax profits from $25.3 million to $22.6 million to the end of December last.
Last October, US regulators approved industrial conglomerate Emerson Electric Co’s $1.2 billion purchase of Avocent International’s parent, Avocent Corporation.
The accounts for Avocent International show that its operating profit dropped by 9 per cent from $24.2 million to $22 million. Profits were hit due to a 33 per cent rise in operating expenses from $75 million to $100 million.
The filings show that the factors behind the rise in operating expenses include a doubling in the amount on administration to $12.6 million, along with selling and marketing costs increasing by 46 per cent from $44.4 million to $65 million. Directors’ remuneration last year increased by 43 per cent from $829,651 to $1.18 million.
After paying the $28 million dividend, the company had $41.8 million in accumulated profits at the end of 2008.
The filings show that the numbers employed at the end of 2008 fallen to 153 with staff costs at $17 million.
Headquartered in Huntsville, Alabama, Avocent has more than 1,800 employees worldwide and counts Intel, HP, Dell, Time Warner and GE among its customers.
The company provides IT infrastructure management products via hardware and software solutions.
The accounts confirm that the company made a decision in early 2008 to centralise all of the group’s RD activities in the US.
They state: “As a result of group-led acquisitions and restructuring, the company expects to expand its offering to customers in a form of hardware and software, which will contribute strongly to revenues and profitability in the future.”
The company’s accounts show that $170 million of its business was carrying out in Europe, Middle East and Africa (EMEA) and $28 million in Asia, with $8 million achieved in “other” areas.
