Avego forecasts big revenue rise despite €1.25m trading loss

NEW RTÉ “Dragon” Seán O’Sullivan said yesterday he expects revenues at his Avego group to increase 50-100 per cent this year on 2011.

The Cork-based Irish American entrepreneur – credited with inventing the term “cloud computing” – said worldwide revenues at Avego doubled last year.

Avego, which has its headquarters in Kinsale, Co Cork, provides real-time information and management systems for the passenger transportation sector.

Accounts recently filed by Avego Ltd show that it recorded a trading loss of €1.25 million in 2010. A note states that the firm – established in 2007 – has secured a financial commitment of $20 million (€15.3 million) from Mr O’Sullivan’s investment arm, SOS Ventures and that €4.5 million has been drawn down.

In an interview, Mr O’Sullivan said Avego’s results weren’t representative of the group’s performance “as the bulk of our sales are done in the US and China and they are not seen in the Irish company’s accounts”.

The self-made multimillionaire said the Irish unit carries out the RD work for the group.

One of the company’s main products is focusing on real-time ride-sharing, which allows individuals pool cars with pioneering car-pooling technology using GPS navigation devices, smartphones and social networks.

Avego will implement its largest ride-sharing project to date in the San Francisco Bay area this year.

Mr O’Sullivan said: “Our growth has happened incredibly quickly and that is down to the strong quality engineering at the company.” Mr O’Sullivan said he wasn’t at liberty to disclose what the group’s revenues or profits were for last year. The firm employs 70 in Ireland, China and the US. Mr O’Sullivan said he hopes to add 15 technical staff to the 40-strong Irish workforce over the next 12 months.