SOURCE: Trinity Biotech plc

April 26, 2007 08:24 ET

Trinity Biotech Announces Quarter 1 Results

Revenues Increase 49% and Profits Increase 135%

DUBLIN, IRELAND -- (MARKET WIRE) -- April 26, 2007 -- Trinity Biotech plc (NASDAQ: TRIB) (DUBLIN: 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 March 31, 2007.

Revenues for the quarter increased 48.5% to US$36.7 million compared to US$24.7 million in the same period last year and US$33.3 million in the previous quarter. Operating profit before share option expenses has increased from US$1.9 million to US$3.7 million or 10% of revenues. Profit after tax for the period increased from US$1.2 million in 2006 to US$2.9 million representing an increase of 135%.

Revenues for the quarter by key product area were as follows :

                        2006      2007
                       US$000    US$000   % Increase
                       ------    ------   ----------
Clinical Chemistry      4,007     4,125       2.9%
Haemostasis             6,821    16,206     137.6%
Infectious Diseases     9,992     9,774      (2.2)%
Point of Care           3,894     6,604      69.6%
Total                  24,714    36,709      48.5%
Revenues for the quarter by geographic location were as follows :
                        2006      2007
                       US$000    US$000   % Increase
                       ------    ------   ----------
USA                    12,266    16,943      38.1%
Europe                  6,966    11,463      64.6%
Asia / Africa           5,482     8,303      51.4%
Total                  24,714    36,709      48.5%
Gross profit for the quarter amounted to US$17.4 million representing a gross margin of 47.4%. This compares to a gross margin of 50.5% for the same period in 2006. The increase in selling, general and administrative expenses from US$9.3 million in 2006 to US$12.0 million in the current year is primarily attributable to the impact of the bioMerieux haemostasis acquisition in June and the direct selling operation in France which was established in October 2006. SG&A expenses as a percentage of revenues have decreased to 32.7% of revenues from 37.4% of revenues in the same period last year.

Commenting on the results, Rory Nealon, Chief Financial Officer, said, "Quarter 1 has been a very strong quarter for Trinity. Quarter on quarter our revenues have increased by US$3.4 million or 10% and our EBITDA before share option expenses has increased to US$5.5 million. Our operating margin before share option expense has increased from 7.9% of revenues in the same period last year to 10.0% in the current quarter.

The integration of our bioMerieux haemostasis acquisition is proceeding well. All sales and marketing and service activities have now been fully transferred to Trinity, our new factory is due for completion by the end of Quarter 2 and we anticipate manufacturing our first batches of bioMerieux product in Quarter 3 as planned."

Ronan O'Caoimh, CEO, commented, "These are very strong Quarter 1 results with all four business units exceeding expectations and profits increasing by 135% over the same period last year. The prospects for the remainder of 2007 are excellent and are underpinned by the key growth drivers of our business which includes our flagship product Uni-Gold HIV. In the USA Uni-Gold HIV continues to penetrate the public health, hospital and physicians' office segment of the market. We are encouraged by the extent of interest in and validation of the product's key differentiating points, namely its earlier detection capability, higher degree of efficacy and longer shelf life. We are particularly pleased with our performance and remain confident that Uni-Gold will continue to take market share from key competitors.

"In Africa and other regions of the world devastated by HIV, multi-lateral donor institutions such as PEPFAR, the Global Fund and Unitaid continue to drive the use of rapid HIV testing. We are working closely with the key players engaged in the fight and remain encouraged that Uni-Gold will play a central role in HIV prevention throughout the world.

"We are also eagerly awaiting approval of our rapid A1c product (Tri-Stat) which remains on track for launch in Quarter 3 of 2007. We are nearing the end of the regulatory process with the FDA including an application for a Physician Office Home Use CLIA Waiver indication which grants a significantly higher reimbursement rate."

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:

                           Trinity Biotech plc
                       Consolidated Income Statements

(US$000's  except share data)                  Three Months  Three Months
                                                      Ended         Ended
                                                  March 31,     March 31,
                                                       2007          2006
                                                (unaudited)   (unaudited)

Revenues                                             36,709        24,714

Cost of sales                                       (19,305)      (12,200)
Cost of sales - share based payments                    (18)          (26)
                                               ------------  ------------

Gross profit                                         17,386        12,488

Other operating income                                   72            60

Research & development expenses                      (1,787)       (1,365)
Selling, general and administrative expenses        (12,017)       (9,253)
Indirect share based payments                          (342)         (344)
                                               ------------  ------------

Operating profit                                      3,312         1,586

Financial income                                        210           154
Financial expenses                                     (806)         (342)
                                               ------------  ------------
Net financing costs                                    (596)         (188)
                                               ------------  ------------

Profit before tax                                     2,716         1,398

Income tax credit / (expense)                           195          (159)
                                               ------------  ------------

Profit for the period                                 2,911         1,239

Earnings per ADR (US cents)                            15.3           8.0

Diluted earnings per ADR (US cents)                      15           8.0

Weighted average no. of shares used in
 computing earnings per share                    75,899,080    61,461,903

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).

                           Trinity Biotech plc
                       Consolidated Balance Sheets

                                                      March      December
                                                   31, 2007      31, 2006
                                                   US$ '000      US$ '000
                                                (unaudited)     (audited)
Non-current assets
Property, plant and equipment                        21,657        22,255
Goodwill and intangible assets                      122,462       121,768
Deferred tax assets                                   7,835         7,656
Other assets                                             92            76
                                               ------------  ------------
Total non-current assets                            152,046       151,755
                                               ------------  ------------

Current assets
Inventories                                          49,153        45,572
Trade and other receivables                          33,228        33,115
Income tax receivable                                   392           368
Financial assets - restricted cash                        -        15,500
Cash and cash equivalents                            13,525         2,821
                                               ------------  ------------
Total current assets                                 96,298        97,376
                                               ------------  ------------

                                               ------------  ------------
TOTAL ASSETS                                        248,344       249,131
                                               ============  ============

Equity attributable to the equity holders of
 the parent
Share capital                                           989           978
Share premium                                       153,776       151,774
Retained earnings                                    14,109        10,818
Translation reserve                                    (326)         (275)
Other reserves                                        3,967         3,967
                                               ------------  ------------
Total equity                                        172,515       167,262
                                               ------------  ------------

Current liabilities
Interest-bearing loans and borrowings                10,377        10,382
Convertible notes - interest bearing                      -         1,836
Income tax payable                                      653            44
Trade and other payables                             20,539        20,459
Other financial liabilities                           3,166         3,120
Provisions                                              100           100
                                               ------------  ------------
Total current liabilities                            34,835        35,941
                                               ------------  ------------

Non-current liabilities
Interest-bearing loans and borrowings                28,916        33,076
Other financial liabilities                           2,606         2,568
Other payables                                          651           838
Deferred tax liabilities                              8,821         9,446
                                               ------------  ------------
Total non-current liabilities                        40,994        45,928
                                               ------------  ------------

                                               ------------  ------------
TOTAL LIABILITIES                                    75,829        81,869
                                               ------------  ------------

                                               ------------  ------------
TOTAL EQUITY AND LIABILITIES                        248,344       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
    Rory Nealon
    E-mail: Email Contact