DUBLIN TECHNOLOGY firm Corvil has become cash-flow positive and generated a pretax profit of €1.1 million in 2010 after a 64 per cent increase in revenues.
Accounts just filed with the Companies Office show Corvil’s revenues increased from €7.9 million in 2009 to €13.1 million last year. The specialist networking company posted a loss of €3.3 million in 2009.
In notes to the accounts the directors of the company said the improvement in financial performance was due to “continual enhancement of the core product” and “increased penetration within the capital markets industry with the addition of major global banks, exchanges and service providers”. The directors also say they expect the company to continue to be cash generative “in 2011 onwards”.
Corvil has developed a mix of hardware and software that allow firms which trade on financial markers to monitor and manage latency, or delay, on their networks. This supports high frequency trading which is done according to software rules.
Customers include Morgan Stanley, Credit Suisse, Thomson Reuters, Chicago Mercantile Exchange, NYSE Euronext, London Stock Exchange and Deutsche Börse.
The company had cash reserves of €5.3 million at the end of 2010. Following heavy investment in research and development in the early years of the company it has retained losses of €43.8 million.
Founded in 2000 Corvil has been backed by high-profile Irish and international investors including international private equity firm Apax Partners, ACT Venture Capital, networking equipment maker Cisco, and US venture capital firm Vesbridge Partners.
Jim Mountjoy, the veteran Irish technology investor, also sits on Corvil’s board.
Corvil employed an average of 45 staff during 2010, up from 35 in 2009.
