SOURCE: Trinity Biotech UK

October 25, 2007 08:15 ET

Trinity Biotech Announces Quarter 3 Results

Year to Date Revenues Increase 26%

DUBLIN, IRELAND--(Marketwire - October 25, 2007) - Trinity Biotech plc (NASDAQ: TRIB), a leading developer and manufacturer of diagnostic products for the point-of-care and clinical laboratory markets, today announced results for the quarter ended September 30, 2007.

Revenues for the year to September 2007 increased 26% to US$107.9 million compared to US$85.3 million in the same period last year, in part reflecting the acquisition of bioMerieux in June 2006. Operating profit for the same period has increased to US$8.3 million from US$0.8 million. Excluding the impact of the US$5.8m inventory write off in 2006 this represents an increase of 25%.

Profit after tax before inventory write-off for the nine months was US$5.6 million compared to US$5.9 million for the same period in 2006.

Revenues for the quarter were US$33.7 million compared to US$33.3 million in quarter 3, 2006. Operating profit for the quarter was US$1.3 million, profit before tax was US$0.6 million and profit after tax was $0.03 million.

Revenues for the nine months by key product area were as follows :

                        2006     2007
                        Q1-Q3    Q1-Q3
                        US$000   US$000   % Increase

Clinical Chemistry      11,128   12,364      11.1%
Haemostasis             29,828   46,822      57.0%
Infectious Diseases     32,109   30,975      (3.5%)
Point of Care           12,281   17,731      44.4%
Total                   85,346  107,892      26.4%

Revenues for the nine months by geographic location were as follows :

                        2006     2007
                        Q1-Q3    Q1-Q3
                        US$000   US$000   % Increase

USA                     42,402   51,722      22.0%
Europe                  23,957   33,025      37.9%
Asia / Africa           18,987   23,145      21.9%
Total                   85,346  107,892      26.4%

Gross profit for the quarter amounted to US$15.3 million representing a gross margin of 45.3%. This compares to a gross margin of 46% for the same period in 2006.

Research and development expenditure remains at approximately 5% of revenues whilst the increase in selling, general and administrative expenses from US$10.3 million in 2006 to US$12.1 million in the current year is primarily attributable to the full impact of the acquisition of the haemostasis product line of bioMerieux in June 2006 and the direct selling operation in France which was established in October 2006. The tax charge for the quarter represents an unusually high effective tax rate of 95% and is attributable to a deferred tax charge associated with inventory movements within the group during the quarter. The effective tax rate for the year to date is 12.8% which is broadly in line with expectations.

Commenting on the results, Rory Nealon, Chief Financial Officer, said "Notwithstanding that quarter 3 revenues have increased slightly over the same period in 2006 this quarter's results were lower than expectations. Revenues have been impacted by lower flu antibody sales through our Fitzgerald operation. Similarly, seasonal factors have affected our haemostasis business where the traditional vacation period, particularly in Continental Europe, has resulted in a drop in revenues. The latter reflects a pattern which is consistent with the lower than expected haemostasis sales in quarter 3, 2006. On the positive side we expect that quarter 4 revenues will represent a significant increase over quarter 3 as these seasonal factors will not apply and given the strength of the current order book. During the quarter, the Company generated EBITDA and share option expense of US$3.7 million and operating profits of US$1.3 million."

Ronan O' Caoimh, CEO, commented, "The year to date has seen growth across all of the Company's geographic locations and product areas with the exception of Infectious Diseases which has been affected by the lower demand for flu antibodies particularly in the Asian market. With the impact of outbreak related diseases and seasonal factors, revenues can be expected to exhibit some fluctuation, especially in the context of a short 13 week reporting cycle. However, it is anticipated that the key areas of growth identified by the Company of point of care, diabetes testing and haemostasis will make the Company less susceptible to such factors in the medium term.

During the quarter the Company was proud to celebrate 15 years of trading on the NASDAQ. The fifteen years have seen the Company grow into a position where we are now a leading participant in a number of segments of the diagnostic industry. In the field of haemostasis we are now one of the four major players and have a best in class instrument platform to complement our routine and speciality reagent product ranges. We are also particularly proud of our position in the point of care market where we are at the forefront of the fight against HIV/AIDS, particularly in the US and African markets. Also during these 15 years, the establishment of direct sales forces in the USA, Germany, United Kingdom and France, representing 60% of the world diagnostics market, have ensured that the Company now has control over the sale and marketing of its products and greater proximity to its ultimate customer base."

Forward-looking statements in this release are made pursuant to the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties including, but not limited to, the results of research and development efforts, the effect of regulation by the United States Food and Drug Administration and other agencies, the impact of competitive products, product development commercialisation and technological difficulties, and other risks detailed in the Company's periodic reports filed with the Securities and Exchange Commission.

Trinity Biotech develops, acquires, manufactures and markets over 500 diagnostic products for the point-of-care and clinical laboratory segments of the diagnostic market. The broad line of test kits are used to detect infectious diseases, sexually transmitted diseases, blood coagulation disorders, and autoimmune diseases. Trinity Biotech sells worldwide in over 80 countries through its own salesforce and a network of international distributors and strategic partners. For further information please see the Company's website: www.trinitybiotech.com.


                           Trinity Biotech plc
                     Consolidated Income Statements

(US$000's except    Three Months  Three Months   Nine Months   Nine Months
 share data)               Ended         Ended         Ended         Ended
                   September 30, September 30, September 30, September 30,
                            2007          2006          2007          2006
                     (unaudited)   (unaudited)   (unaudited)   (unaudited)


Revenues                  33,746        33,319       107,892        85,346

Cost of sales            (18,439)      (17,962)      (57,149)      (44,296)
Cost of sales -
 inventory write off           -             -             -        (5,800)
Cost of sales -
 share based
 payments                    (21)          (23)          (53)          (72)
                    ------------  ------------  ------------  ------------

Gross profit              15,286        15,334        50,690        35,178
Gross profit before
 inventory write off      15,286        15,334        50,690        40,978

Other operating
 income                       91            36           256           157

Research &
 development
 expenses                 (1,560)       (1,738)       (5,094)       (4,696)
Selling, general
 and administrative
 expenses                (12,131)      (10,344)      (36,448)      (28,904)
Indirect share
 based payments             (398)         (330)       (1,106)         (915)
                    ------------  ------------  ------------  ------------

Operating profit           1,288         2,958         8,298           820
Operating profit
 before inventory
 write off                 1,288         2,958         8,298         6,620

Financial income              41           331           400           796
Financial expenses          (717)         (982)       (2,327)       (1,724)
                    ------------  ------------  ------------  ------------
Net financing costs         (676)         (651)       (1,927)         (928)
                    ------------  ------------  ------------  ------------

Profit / (Loss)
 before tax                  612         2,307         6,371          (108)

Income tax
 (expense) / credit         (581)          244          (815)        1,786
                    ------------  ------------  ------------  ------------

Profit for the
 period                       31         2,551         5,556         1,678

Profit for the
 period before
 inventory write
 off                          31         2,551         5,556         5,906

Earnings per ADR
 (US cents)                  0.2          13.8          29.2           9.7
Earnings per ADR
 before inventory
 write off                   0.2          13.8          29.2          34.1

Diluted earnings
 per ADR (US cents)          0.2          13.5          28.5           9.7
Diluted earnings
 per ADR before
 inventory write off         0.2          13.5          28.5          33.2

Weighted average
 no. of ADR shares
 used in computing
 earnings per share   19,015,883    18,498,826    18,999,424    17,315,106



                         Trinity Biotech plc
                     Consolidated Balance Sheets


                                                    September     December
                                                     30, 2007     31, 2006
                                                     US$ '000     US$ '000
                                                  (unaudited)    (audited)
ASSETS
Non-current assets
Property, plant and equipment                          24,767       22,255
Goodwill and intangible assets                        127,364      121,768
Deferred tax assets                                     7,548        7,656
Other assets                                               96           76
                                                 ------------ ------------
Total non-current assets                              159,775      151,755
                                                 ------------ ------------

Current assets
Inventories                                            55,753       45,572
Trade and other receivables                            26,016       33,115
Income tax receivable                                     479          368
Financial assets - restricted cash                          -       15,500
Cash and cash equivalents                               4,124        2,821
                                                 ------------ ------------
Total current assets                                   86,372       97,376
                                                 ------------ ------------

                                                 ------------ ------------
TOTAL ASSETS                                          246,147      249,131
                                                 ============ ============

EQUITY AND LIABILITIES
Equity attributable to the equity holders of the
 parent
Share capital                                             990          978
Share premium                                         153,942      151,774
Retained earnings                                      17,580       10,818
Translation reserve                                       131         (275)
Other reserves                                          3,967        3,967
                                                 ------------ ------------
Total equity                                          176,610      167,262
                                                 ------------ ------------

Current liabilities
Interest-bearing loans and borrowings                  10,605       10,382
Convertible notes - interest bearing                        -        1,836
Income tax payable                                        398           44
Trade and other payables                               19,885       20,459
Other financial liabilities                             2,685        3,120
Provisions                                                100          100
                                                 ------------ ------------
Total current liabilities                              33,673       35,941
                                                 ------------ ------------

Non-current liabilities
Interest-bearing loans and borrowings                  25,412       33,076
Other financial liabilities                                 -        2,568
Other payables                                            463          838
Deferred tax liabilities                                9,989        9,446
                                                 ------------ ------------
Total non-current liabilities                          35,864       45,928
                                                 ------------ ------------

                                                 ------------ ------------
TOTAL LIABILITIES                                      69,537       81,869
                                                 ------------ ------------

                                                 ------------ ------------
TOTAL EQUITY AND LIABILITIES                          246,147      249,131
                                                 ============ ============


The above financial statements have been prepared in accordance with the
principles of International Financial Reporting Standards and the Company's
accounting policies but do not constitute an interim financial report as
defined in IAS 34 (Interim Financial Reporting).


Contact Information

  • Contact :
    Trinity Biotech plc
    Brendan Farrell
    (353)-1-2769800
    E-mail: Email Contact