SOURCE: Trinity Biotech plc

July 28, 2005 08:26 ET

Trinity Biotech Announces Quarter 2 Results

Revenues Increase 13%

DUBLIN, IRELAND -- (MARKET WIRE) -- July 28, 2005 --Trinity Biotech plc (NASDAQ: TRIB) (ISE:TRIB.I), a leading developer and manufacturer of diagnostic products for the point-of-care and clinical laboratory markets, today announced results for the quarter ended June 30, 2005.

Revenues in the quarter increased 13.2% to US$22.7 million compared to US$20.0 million in the same period last year. Revenues for the year to date by key product area were as follows :

                    H1 2004   H1 2005   % Increase
                    US$000    US$000

Infectious Disease   13,919    14,909       7.1
Coagulation          13,603    14,399       5.9
POC                   4,275     6,318      47.8
Other                 4,661     8,313      78.3
Total                36,458    43,939      20.5
Revenues by geographical location were as follows :
                    H1 2004   H1 2005   % Increase
                    US$000    US$000

USA                  18,119    21,808      20.4
Europe               11,302    11,894       5.2
Asia / Africa         7,037    10,237      45.5
Total                36,458    43,939      20.5
Gross profit for the quarter amounted to US$11.0 million, representing a gross margin of 48.2%. This compares to a gross profit of US$10.3 million in the same period last year.

R&D expenses have increased from US$1.2 million in Quarter 2 last year to US$1.3 million in the current quarter. The increase in Administrative costs from US$7.2 million in Quarter 2 last year to US$8.0 million in the current year is primarily attributable to the increased salesforce in the USA and the recent RDI acquisition.

The net effect of the above factors was an operating profit of US$1.67 million for the quarter as compared to US$1.44 million in the most recent quarter. Operating profit of US$1.67 million equates to an earnings per ADR for the quarter of 8.4 US cents (earnings per Ordinary Share of 2.1 cents).

Commenting on the results, Rory Nealon, Chief Financial Officer, said, "Quarter 2 has been a quarter of continuing progress for Trinity. Our revenues have grown significantly, we reported increased operating profits over the prior quarter and we have recently completed the acquisition of Primus. Our quarterly revenues have improved by 13% on the same period last year and by 7% on the most recent quarter. We are particularly pleased with the recent increases in our Point of Care business which grew by 9% on Quarter 1 and by the $1.5 million increase in our Fitzgerald business during the quarter, half of which is attributable to the recent RDI acquisition."

Ronan O'Caoimh, CEO, commented, "We are particularly pleased with the ongoing success of our HIV point-of-care business in both Africa and the US markets which has grown by 48% in the first half of the year as compared to the same period last year. During the quarter, following the consolidation of our ADR unit, we successfully completed our transition from the Nasdaq Small Cap to the Nasdaq National Market.

"We recently completed the acquisition of Primus Corporation, a leader in the field of in vitro diagnostic testing for haemoglobin A1c and haemoglobin variants. Primus has demonstrated average annual growth rates of 30% in recent years primarily due to its patented HPLC boronate affinity testing which is the only truly interference-free A1c test on the market today. We are also excited about the new Primus Rapid Gel product which is currently awaiting FDA approval which we expect will be granted in early 2006. The acquisition has been funded entirely by bank debt which will enhance our financial flexibility and our ability to deliver further shareholder value."

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 Statements of Income

(US$000's  except
 share data)           Three Months   Three Months  Six Months  Six Months
                           Ended         Ended         Ended       Ended
                          June 30,      June 30,     June 30,     June 30,
                            2005          2004         2005         2004
                         (Unaudited)   (Unaudited) (Unaudited)  (Unaudited)

Revenues                    22,712       20,049       43,939        36,458

Cost of goods sold         (11,754)      (9,761)     (22,577)      (18,133)
                          --------      -------     --------      --------

Gross profit                10,958       10,288       21,362        18,325

Research &
 development expenses       (1,302)      (1,175)      (2,622)       (2,353)


Administrative
 expenses                   (7,986)      (7,212)     (15,632)      (12,963)


Operating profit             1,670        1,901        3,108         3,009

Share option expense          (201)         (54)        (413)          (97)
Interest receivable            117           64          230           180
Interest payable              (222)        (225)        (460)         (432)
                             -----        -----        -----         -----

Profit on
 ordinary activities
 before tax                  1,364        1,686        2,465         2,660

Tax on profit on ordinary
 activities                   (146)         124         (244)          156

Profit after tax             1,218        1,810        2,221         2,816

Earnings per ADR               8.4         13.2         15.5          20.8
Earnings per Ordinary
 Share (US$ cents)             2.1          3.3          3.9           5.2


Diluted earnings
 per ADR                       8.4         12.0         15.5          19.6
Diluted earnings per
 Ordinary Share
 (US$ cents)                   2.1          3.0          3.9           4.9



Weighted average
 no. of Ordinary
 Shares used in
 computing earnings
 per Ordinary Share     57,714,081   55,580,789   57,336,295    54,070,758

Prepared in accordance with International Financial Reporting Standards


                            Trinity Biotech plc
                       Consolidated Balance Sheet

                                       June 30, 2005    December 31, 2004
                                          US$000's          US$000's
                                         Unaudited         Unaudited

CURRENT ASSETS
Cash and cash equivalents                  17,951            22,287
Accounts receivable and prepayments        17,758            13,588
Inventories                                35,983            37,519
Current tax                                   599               697
                                              ---               ---
                                           72,291            74,091


NON CURRENT ASSETS
Tangible assets                            16,778            15,942
Intangible assets                          68,805            62,884
Deferred tax asset                          1,995             2,402
Other assets                                  907             1,330
                                              ---             -----
                                           88,485            82,558


TOTAL ASSETS                              160,776           156,649


CURRENT LIABILITIES
Short-term financial liabilities           10,448            11,087
Accounts payable & accrued expenses        10,128             8,665
Current tax                                   680               542
                                              ---               ---
                                           21,256            20,294


NON CURRENT LIABILITIES
Long-term financial liabilities             8,894            12,923
Deferred tax liability and other taxes      3,642             3,558
                                            -----             -----
                                           12,536            16,481

SHAREHOLDERS' EQUITY
Called up share capital
    Class "A" ordinary shares                 778               764
    Class "B" ordinary shares                  12                12
Share premium account                     123,907           120,444
Currency adjustment                       (5,285)           (3,975)
Revenue and other reserves                  7,572             2,629
                                            -----             -----
                                          126,984           119,874


TOTAL LIABILITIES & SHAREHOLDERS'
EQUITY                                    160,776           156,649

Prepared in accordance with International Financial Reporting Standards

Contact Information

  • Contact :
    Trinity Biotech plc
    Rory Nealon
    (353)-1-2769800
    E-mail: Email Contact