SOURCE: Trinity Biotech plc

April 29, 2008 08:00 ET

Trinity Biotech Announces Quarter 1 Results

Revenues of $34.3m and Operating Profit of $1.8m

DUBLIN, IRELAND--(Marketwire - April 29, 2008) - 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 March 31, 2008.

Revenues for quarter 1, 2008 amounted to US$34.3m compared to US$36.7m for quarter 1, 2007, a decrease of 6.7%. This decrease was entirely attributable to lower HIV sales in Africa. This reflects the variable nature of this market and the particularly strong sales achieved by the Company in quarter 1, 2007. Sales in the Clinical Laboratory division increased by approximately 3% over the same period in 2007. Operating profit and net profit for the period amounted to US$1.8m and US$1m respectively. EBITDA & share option expense for the quarter was US$4.0m.

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

                            2007         2008
                          Quarter 1    Quarter 1
                           US$000       US$000      % Increase

Clinical Laboratory        30,105       30,916         2.7%
Point of Care               6,604        3,337       (49.5)%
Total                      36,709       34,253        (6.7)%

Revenues for the quarter by geographic location were as follows:

                            2007         2008
                          Quarter 1    Quarter 1
                           US$000       US$000      % Increase

Americas                   16,943       16,938         0.0%
Europe                     11,463       12,325         7.5%
Asia / Africa               8,303        4,990       (39.9)%
Total                      36,709       34,253        (6.7)%

Gross profit for the quarter amounted to US$15.8m, representing a gross margin of 46%. This compares to a gross margin of 47.4% for the same period in 2007. The slight decrease in gross margin is attributable to lower HIV sales and the impact of the weakening US dollar versus the Euro, which averaged 1.31 in quarter 1, 2007 and 1.50 in quarter 1, 2008.

Research and development expenditure remains at approximately 5% of revenues. Selling, general and administrative expenses of US$12.0m have remained in line with quarter 1, 2007 with the reduction in headcount implemented in quarter 4, 2007 offsetting the impact of exchange rate movements.

The reorganisation of the Company announced in December 2007 is proceeding well with most of the key objectives having already been achieved. The reorganisation will be fully implemented by the end of quarter 2. During the quarter, Trinity announced the launch of its GeneSys™ system, a product designed for the identification of all major infant haemoglobin variants. This marks an extension of Trinity's presence in the haemoglobinopathy market as we are now competing in the neonatal as well as the adult market.

Commenting on the results, Kevin Tansley, Chief Financial Officer, said, "With revenues of US$34.3m and profits of US$1.0m Trinity has met market expectations and expects to meet consensus analyst estimates for 2008. Due to seasonal factors, quarter 1 tends to be a slower quarter for us and we are expecting revenue and profit growth in future quarters. We have also been successful in controlling our indirect costs, notwithstanding the pressure caused by the weakening dollar."

Brendan Farrell, CEO, commented, "This was a good quarter for Trinity Biotech. We are pleased with growth in our Clinical Laboratory division in quarter 1 and in particular, haemostasis sales which have grown significantly over the quarterly sales in the second half of 2007. The lower HIV sales in Africa were expected due to the exceptional sales of Uni-Gold HIV in that market last year. Orders on book indicate a return to normal sales levels in quarter 2.

"During the quarter, we launched and achieved the first sales of our GeneSys™ product for the identification of all major infant haemoglobin variants. We also remain on course to meet our other new product objectives for 2008, in particular the launch of the Destiny Max at the end of Quarter 3."

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 diagnostic systems, including both reagents and instrumentation, for the point-of-care and clinical laboratory segments of the diagnostic market. The products are used to detect infectious diseases and blood coagulation disorders, and to quantify the level of Haemoglobin A1c and other chemistry parameters in serum, plasma and whole blood. Trinity Biotech sells direct in the United States, Germany, France and the U.K. and through a network of international distributors and strategic partners in over 75 countries worldwide. For further information please see the Company's website: www.trinitybiotech.com.

                           Trinity Biotech plc
                      Consolidated Income Statements



(US$000's  except share data)                     Three Months Three Months
                                                        Ended        Ended
                                                    March 31,    March 31,
                                                         2008         2007
                                                   (unaudited)  (unaudited)

Revenues                                               34,253       36,709

Cost of sales                                         (18,472)     (19,305)
Cost of sales - share based payments                      (18)         (18)
                                                  -----------  -----------

Gross profit                                           15,763       17,386

Other operating income                                     89           72

Research & development expenses                        (1,845)      (1,787)
Selling, general and administrative expenses          (12,035)     (12,017)
Indirect share based payments                            (191)        (342)
                                                  -----------  -----------

Operating profit                                        1,781        3,312

Financial income                                            9          210
Financial expenses                                       (675)        (806)
                                                  -----------  -----------
Net financing costs                                      (666)        (596)
                                                  -----------  -----------

Profit before tax                                       1,115        2,716

Income tax (expense) / credit                             (66)         195
                                                  -----------  -----------

Profit for the period                                   1,049        2,911

Earnings per ADR (US cents)                               5.5         15.3

Diluted earnings per ADR (US cents)                       5.5         15.0

Weighted average no. of ADR shares used in
 computing earnings per share                      19,039,191   18,974,770


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, 2008     31, 2007
                                                     US$ '000     US$ '000
                                                  (unaudited)  (unaudited)
ASSETS
Non-current assets
Property, plant and equipment                          26,123       26,409
Goodwill and intangible assets                        105,719      104,928
Deferred tax assets                                     4,298        3,937
Other assets                                              943          896
                                                  -----------  -----------
Total non-current assets                              137,083      136,170
                                                  -----------  -----------

Current assets
Inventories                                            43,082       44,420
Trade and other receivables                            28,661       25,683
Income tax receivable                                     571          782
Derivative financial instruments                          511          224
Cash and cash equivalents                               3,075        8,700
                                                  -----------  -----------
Total current assets                                   75,900       79,809
                                                  -----------  -----------

                                                  -----------  -----------
TOTAL ASSETS                                          212,983      215,979
                                                  ===========  ===========

EQUITY AND LIABILITIES
Equity attributable to the equity holders of the
 parent
Share capital                                             991          991
Share premium                                         153,951      153,961
Retained earnings                                     (21,651)     (22,908)
Translation reserve                                     1,249          797
Other reserves                                          4,272        4,004
                                                  -----------  -----------
Total equity                                          138,812      136,845
                                                  -----------  -----------

Current liabilities
Interest-bearing loans and borrowings                  15,786       15,821
Income tax payable                                        312           86
Trade and other payables                               23,630       24,779
Other financial liabilities                             2,765        2,725
Provisions                                                100          100
                                                  -----------  -----------
Total current liabilities                              42,593       43,511
                                                  -----------  -----------

Non-current liabilities
Interest-bearing loans and borrowings                  22,132       26,312
Other payables                                             74           74
Deferred tax liabilities                                9,372        9,237
                                                  -----------  -----------
Total non-current liabilities                          31,578       35,623
                                                  -----------  -----------

                                                  -----------  -----------
TOTAL LIABILITIES                                      74,171       79,134
                                                  -----------  -----------

                                                  -----------  -----------
TOTAL EQUITY AND LIABILITIES                          212,983      215,979
                                                  ===========  ===========

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