Avocent reports drop in annual profits

Avocent International, whose Irish operations are based in Shannon, has reported a drop in operating profits from almost $4.6 million (€3.4 million) to $3 million (€2.2 million).

Newly published accounts for the tech company for the year ending September, 2013 showed a decline in turnover from $76.4 million (€57.2 million) to $67.5 million (€50.5 million) for the 12 month period.

Avocent’s principal business is the “development, manufacture, distribution, sale and marketing of IT solutions products for the European, Middle-East, African and Asian markets”. It operates in over 150 countries.

Commenting on its annual drop in turnover and operating profit, the company said: “The operating margin percentage decreased from 5.99 per cent in 2012 to 4.45 per cent in 2013. The directors regard this as a satisfactory result in the current economic environment”.

The company employs an average of 95 people and operates a defined contribution pension scheme. Its auditor is KPMG.

Profits before tax for the year to September, 2013 stood at $2.6 million (€1.9 million), compared to $3.5 million (€2.6 million) the previous year.

The company is exposed to “some level of foreign exchange risk arising principally from trading with suppliers and customers in foreign currencies and holding cash and other monetary assets and liabilities in foreign currencies”.

In terms of future developments, it said that as a result of product developments it expects to expand its offering to customers through hardware, software and services “which will contribute to revenues and profitability in the future”.