The Irish subsidiary of digital media equipment maker Creative Labs returned to profit last year despite revenues declining by 21 per cent.

Newly-filed accounts show Creative Labs (Ireland) Limited, which sells and distributes wireless speakers, earphones, audio solutions, and portable media devices, recorded a $826,405 pre-tax profit for the 12 months ending June 2015. This compares with a $9.9 million loss a year earlier.

Revenues fell to $31.1 million from $39.8 million due to what the company said was “adverse macro economic conditions within the European market and the effects of increased competition in the hardware technology industry.”

Creative Labs said it expects revenues to continue to decline due to the “significant challenges” that exists in the market in which it operates.

“The company will continue to review and refine its operations to achieve greater operational efficiency so as to lessen the impact of a lower revenue stream,” it said.

Gross profit almost halved last year, falling from $8.3 million to $4.2 million.

Singapore-owned Creative Labs, which became well known for its Sound Blaster PC sound cards, restructured its Irish operations in late 2006, with the loss of 230 jobs at its plant in Ballycoolin Industrial Estate in Blanchardstown, Dublin.

The company had 14 employees in Ireland at the end of last year, down from 25 a year earlier. Staff costs, including wages and salaries, totalled $1.85 million as against $1.9 million a year earlier. Redundancy costs amounting to $385,448 are also included in overall staff costs for 2015.