Adobe’s Irish subsidiaries see profits, revenues rise

Two Irish-based subsidiaries of the software firm Adobe reported increases in turnover last year.

Adobe Software Trading Company Limited, which is based in Citywest, Dublin, recorded a pretax profit of $155 million for the 12 months ending November 27th, 2015, as against a $39 million loss a year earlier, newly filed accounts show.

The company, whose activities are listed as research and development, licensing, production and distribution of software outside of the United States, Canada and Mexico, recorded revenues that were up 5 per cent to $2 billion, versus $1.95 billion for the previous year.

As a percentage of revenue, the operating margin was up 6 per cent, the company said.

The accounts show the subsidiary paid $35 million in taxes last year on profits of $155 million, of which $3 million was in Irish corporation tax.

Employee numbers fell from 2,788 to 2,596 over the year under review with staff costs totalling $498 million compared with $540 million a year earlier.

Founded in 1982 and with headquarters in San Jose, California, the company's parent Adobe Systems makes digital software products that include Photoshop, Acrobat, Dreamweaver and Illustrator.

A second subsidiary, Adobe Systems Software Ireland Limited, also based in Citywest, reported a pretax profit of $44 million last year, as against $51.6 million in fiscal 2014.

Turnover rose 8 per cent to $1.95 billion from $1.8 billion due primarily to the successful transition to the group’s Creative Cloud subscription service.

The subsidiary, which says it offers a line of digital media products and services for use by creative professionals, said net assets increased to $251 million from $234 million.

The unit employed 119 people across R&D, sales and support and operations with staff costs totalling €12.3 million last year.

The accounts show the company paid $28.9 million in taxes last year on profits of $44 million, of which $3 million was in Irish corporation tax.