Technology giant EMC, which employs 2,500 people in Cork, reported a $1 billion increase in turnover at its main Irish subsidiary in the year to the end of February.
Newly filed accounts for EMC Information Systems International show turnover jumped to $5.2 billion last year as against $4.2 billion a year earlier. The company paid a $135 million dividend to its immediate parent in September.
The Irish subsidiary, which is based in Ovens, Co Cork, is ultimately owned by Dell, which acquired data storage systems specialist EMC in a $67 billion deal in 2015.
EMC attributed the rise in revenues to increased activity in European markets. A breakdown of turnover shows $4.85 million arose from sales of products with the remaining $463,845 arising from services.
Despite the sharp increase in revenues, pre-tax losses widened at the Irish unit to $216.9 million from $159.4 million in the prior year. Included in the loss is a goodwill impairment of $250 million and a $455 million loss on derivative financial instruments, which had been marked as a gain of $94 million a year earlier.
During the year under review, intangible assets with a carrying value of $2.99 billion were written off.
The latest accounts show the subsidiary acquired intellectual property from its parent for $7.5 billion earlier this with the transaction financed by way of an intercompany loan note.
The company incurred research and development costs of $46 million in the 12 months to the end of February, up from $43 million a year earlier.
Employee numbers have declined at EMC’s Irish subsidiary in the years since the merger was completed with about 500 people having left the company since 2016.
The company employed 2,499 people at its Cork plant last year across customer services, sales, professional services, administration, manufacturing and R&D. This compares to 2,550 staff a year earlier. Despite the decline in employees, staff costs rose to $239.4 million, as against $225.8 million in the prior year.
The unit has received $118.7 million in recent months, comprising of a $110 million cash distribution from EMC Deutschland and $8 million in the form of an investment from its VCE Technology Solutions Limited subsidiary.
Dell EMC employs about 5,000 people in total in the Republic.
