SOURCE: Trinity Biotech plc

October 27, 2005 09:20 ET

Trinity Biotech Announces Quarter 3 Results

Revenues Increase 25%

DUBLIN, IRELAND -- (MARKET WIRE) -- October 27, 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 September 30, 2005.

Revenues in the quarter increased 25.1% to US$26.9 million compared to US$21.5 million in the same period last year. Revenues for the year to date by key product area were as follows :

                        2004      2005
                        Q1 - Q3   Q1 - Q3
                        US$000    US$000   % Increase

Infectious Disease      25,442    33,130    30.2
Coagulation             19,911    21,490    7.9
POC                     7,221     9,467     31.1
Clinical Chemistry      5,361     6,731     25.6
Total                   57,935    70,818    22.2

(Note that the category of "Other" has been split with "Fitzgerald"
 included in Infectious Disease and Clinical Chemistry combined with the
 recent Primus acquisition)
Revenues by geographical location were as follows :
                        2004      2005
                        Q1 - Q3   Q1 - Q3
                        US$000    US$000   % Increase

USA                     29,521    36,200    22.6
Europe                  16,847    18,339     8.9
Asia / Africa           11,567    16,279    40.7
Total                   57,935    70,818    22.2
Gross profit for the quarter amounted to US$13.2 million, representing a gross margin of 48.9%. This compares to a gross profit of US$11.0 million in the same period last year and represents an increase on the Quarter 2 margin of 48.2%.

R&D expenses have increased from US$1.3 million in Quarter 3 last year to US$1.6 million in the current quarter. The increase in Administrative costs from US$7.6 million in Quarter 2 last year to US$9.4 million in the current year is primarily attributable to the recent Primus and RDI acquisitions.

The net effect of the above factors was an operating profit of US$2.15 million and a profit after tax of US$1.6 million for the quarter as compared to US$1.2 million in quarter 2. This equates to an earnings per ADR for the quarter of 10.8 US cents (earnings per Ordinary Share of 2.7 US cents).

Commenting on the results, Rory Nealon, Chief Financial Officer, said, "Quarter 3 has been a quarter of continuing progress for Trinity. Our revenues have grown by 18% on Quarter 2 and our operating margins have increased to 8.0% as compared to 6.8% at the start of the year. We have also funded our recent Primus acquisition entirely by bank debt which will enhance our financial flexibility and our ability to deliver further shareholder value.

"We are especially pleased with the growth across all of our key product areas, each of which is outperforming the market growth rates. In particular, our infectious disease business has benefited strongly from large sales of flu antibodies in the current quarter."

Ronan O'Caoimh, CEO, commented, "Primus, which we acquired on July 21 has experienced very strong instrument placements during the quarter. We are particularly excited about the new Primus Rapid Gel product which is currently awaiting FDA approval. We expect that this approval will be granted in Quarter 2, 2006 and will enable the Company to compete in the US$200 million point of care HbA1c market.

"Our revenues have increased US$4.16 million from US$22.71 million last quarter to US$26.88 million this quarter. Approximately 50% of this increase is due to our acquisition of Primus with the other 50% reflecting an excellent 8% organic growth over the three month period. With operating profits of US$2.15 million in the quarter we have returned to the levels of profit achieved by the Company prior to the huge investment in our sales and marketing effort in the US during 2004. Given the growth being experienced in all product areas we are confident of continuing this trend in profitability in coming quarters.

"In September the directors acquired a total of 4,501,675 Ordinary Shares (1,125,419 ADR's) in the Company through a combination of 1,954,800 Ordinary Shares purchased on the open market and 2,546,875 share options exercised. The Directors believe that these transactions reflect the confidence and belief that the senior executives and Board of the Company have in the future of Trinity Biotech."

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   Nine Months   Nine Months
                           Ended         Ended         Ended         Ended
                    September 30, September 30, September 30, September 30,
                            2005          2004          2005          2004
                      (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)

Revenues                  26,878        21,477        70,818        57,935

Cost of goods sold       (13,726)      (10,435)      (36,304)      (28,568)
                      ----------    ----------    ----------    ----------

Gross profit              13,152        11,042        34,514        29,367

Research & development
 expenses                 (1,610)       (1,342)       (4,232)       (3,695)
Administrative
 expenses                 (9,394)       (7,574)      (25,026)      (20,537)
                      ----------    ----------    ----------    ----------

Operating profit           2,148         2,126         5,256         5,135

Share option expense        (195)         (109)         (607)         (206)
Interest receivable           70            55           300           235
Interest payable            (270)         (184)         (731)         (616)
                      ----------    ----------    ----------    ----------

Profit on ordinary
 activities before tax     1,753         1,888         4,218         4,548

Tax on profit on
 ordinary activities        (148)         (180)         (392)          (24)
                      ----------    ----------    ----------    ----------
Profit after tax
                           1,605         1,708         3,826         4,524

Earnings per ADR            10.8            12          26.4          33.2
Earnings per Ordinary
 Share (US$ cents)           2.7             3           6.6           8.3


Diluted earnings per
 ADR                        10.4          10.8          25.6            30
Diluted earnings per         2.6           2.7           6.4           7.5
 Ordinary Share
(US$ cents)

Weighted average no.
 of Ordinary Shares
 used in computing
 earnings per
 Ordinary Share       59,402,312    56,090,236    58,032,535    54,748,831


Prepared in accordance with International Financial Reporting Standards


                Trinity Biotech plc
             Consolidated Balance Sheet

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

CURRENT ASSETS
Cash and cash equivalents                        19,286             22,287
Accounts receivable and prepayments              19,608             13,705
Inventories                                      38,629             37,519
Current tax                                         138                815
                                                -------            -------
                                                 77,661             74,326

NON CURRENT ASSETS
Tangible assets                                  19,339             15,942
Intangible assets                                77,681             62,884
Financial assets                                    382                  -
Deferred tax asset                                2,421              2,338
Other assets                                        943              1,330
                                                -------            -------
                                                100,766             82,494

TOTAL ASSETS                                    178,427            156,820

CURRENT LIABILITIES
Short-term financial liabilities                 11,854             11,087
Accounts payable & accrued expenses              15,805              8,631
Current tax                                         596                792
                                                -------            -------
                                                 28,255             20,510

NON CURRENT LIABILITIES
Long-term financial liabilities                  14,084             12,923
Deferred tax liability and other taxes            4,074              3,552
Other liabilities                                   115                 35
                                                -------            -------
                                                 18,273             16,510

SHAREHOLDERS' EQUITY
Called up share capital
    Class "A" ordinary  shares                      806                764
    Class "B" ordinary shares                        12                 12
Share premium account                           127,063            120,444
Revenue and other reserves                        4,018             (1,420)
                                                -------            -------
                                                131,899            119,800



TOTAL LIABILITIES & SHAREHOLDERS'EQUITY         178,427            156,820

Prepared in accordance with International Financial Reporting Standards

Contact Information

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