PRE-TAX profits at a Shannon-based holding company for US-owned Mentor Graphics saw an almost fourfold increase to $81.3 million (€6.34m) last year.

According to accounts lodged by Mentor Graphics (Holdings) Ltd and subsidi-aries with the Companies Office, the holding company and subsidiaries’ turnover decreased by 13%, from $393.2m to $347.8m, in the 12 months to the end of January last year.

The company’s pre-tax profits increased from $20.9m to $81.3m.

The company is headquartered in Oregon in the US, employs 4,700 worldwide and engages in electronic design automation.

The revenues generated by the Irish-based company accounted for 43% of Mentor Graphic’s global revenues of $914.8m in fiscal 2011.

The accounts for the company, which is also the holding company for the group’s operations in Europe, Middle East and Africa and Asia/Pacific region, show the holding firm’s operating profits increased to $81m by the end of January 2011 from $21m at the same time the previous year.

A directors’ report attached to the accounts states that they are satisfied with the performance and that the group intends to further develop its activities over the coming year. Mentor Graphics enjoyed the sharp increase in profits through reducing cost of sales from $57.1m to $28.3m. As a result, the company’s gross profit rose from $290.6m to $364.8m. Its operating expenses increased from $269.4m to $285.2m.