Dublin-based Oracle subsidiary posts €707m pretax profit

A DUBLIN-BASED subsidiary of US software giant Oracle made a pretax profit of €707.5 million in the year to May 31st, 2008, and paid corporation tax of €86 million, according to recently-filed accounts.

It generated a profit of €468 million in 2007 and did not pay a dividend that year.

Oracle EMEA Ltd is involved in the manufacture and sale of computer software products in the European market, together with the provision of associated translation, finance and marketing services.

In their directors’ report the directors of the company say trading was strong during the period and that they expect it to continue to be so.

During the year the company paid a dividend of €250 million to its US parent.

Oracle had revenues of $22.4 billion in the same financial year which generated a net income of $5.5 billion. The firm’s revenues have grown rapidly in recent years driven by a bullish acquisition strategy. Oracle has acquired more than 50 rivals since 2005 when its annual revenues were $11.7 billion. The accounts state that its parent spent $9.4 billion on acquisitions in 2008.

Last month it surprised the technology industry by announcing its intention to acquire Sun Microsystems, which had been in talks with IBM, in a $7 billion deal.

The company, which is based in the East Point Business Park, had a turnover during the year of €3.74 billion. According to the accounts, turnover derived from software licence, support and other contracts and included sublicence fees from fellow Oracle subsidiaries.

The accounts show that turnover of €80 million arose in Ireland and €3.66 billion from the rest of Europe.

The average number employed by the company during the year was 843, of whom 282 were involved in sales and marketing, 234 in telesales support, and 155 in finance and administration. A further 105 were involved in manufacturing and development while 66 were involved with translation.

Staff costs during the year were €59.6 million. At May 31st last Oracle had received grants from IDA Ireland totalling €8.4 million, primarily relating to the creation of full-time jobs.

Oracle sells software databases and applications to large businesses.

It was founded in 1997 by Larry Ellison who continues to serve as the company’s chief executive.