THE IRISH arm of Belgian wireless technology manufacturer Option Wireless sustained a 22 per cent year-on-year decline in pretax profits to €19.4 million in 2007, in spite of turnover rising by 7 per cent during the period.

Accounts just filed with the companies office show that Cork-based Option Wireless Ltd increased its revenue to the end of 2007 to €297 million from €276 million a year earlier.

The accounts show the company’s pretax profits dropped from €25.2 million to €19.4 million during the period.

Last December, Option Wireless said it would add 145 new high-end production jobs over the next three years to establish the Cork facility as the main centre for its global supply chain.

Option Wireless designs, develops and manufactures devices that provide high-quality wireless access to the internet.

The main factor behind the drop in pretax profits was a sharp increase in the company’s “cost of sales”, which rose by 23 per cent to €212 million.

Its gross profit declined by 20 per cent to €84 million while the group’s operating profit dropped to €19.4 million in 2007 from €24.7 million a year earlier.

Option Wireless had accumulated profits of €47 million at the end of 2007, with total shareholders’ funds standing at €50 million.

The directors’ report attached to the accounts states: “Option’s global market leadership was strengthened in the course of the year. Option’s share of the data card market is now estimated at 70 per cent in Europe and 30 per cent worldwide.”

Option Wireless’s Irish business employed an average of 293 staff during 2007, up from 252 in the previous year. This resulted in the company’s wage bill increasing to €8.9 million in 2007 from €6.2 million a year earlier.

The company paid no dividend to its Belgian parent in 2007.