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Trinity Biotech Announces Quarter 2 Results Revenues of US$36.3m and Operating Profit of US$2.3m DUBLIN, IRELAND--(MARKET WIRE)--Jul 22, 2008 -- Trinity Biotech plc (TRIB - News), 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, 2008.
Quarter 2 Results Revenues for quarter 2, 2008 amounted to US$36.3m compared to US$34.3m for quarter 1, 2008, an increase of 6%. This included growth of 20.9% in our Point of Care revenues and 4.3% in our Clinical Laboratory revenues. Compared to quarter 2, 2007, revenues fell by 3%. This decrease in revenues arose in the Point of Care Division and reflects the fact that African HIV sales in the first half of 2007 were particularly strong and have now reverted to more normalised levels. Sales in the Clinical Laboratory Division increased by 4.3% over the same period in 2007. Operating profit and net profit for the quarter amounted to US$2.3m and US$1.5m respectively. EBITDA & share option expense for the quarter was US$4.6m and US$8.6m for the year to date. Revenues for the quarter by key product area were as follows:
2007 2008 %
Quarter 2 Quarter 2 Increase/
US$000 US$000 (decrease)
----------- ----------- ----------
----------- ----------- ----------
Clinical Laboratory 30,929 32,260 4.3%
----------- ----------- ----------
Point of Care 6,507 4,036 (38.0%)
----------- ----------- ----------
Total 37,436 36,296 (3.0%)
----------- ----------- ----------Revenues for the quarter by geographic location were as follows:
2007 2008 %
Quarter 2 Quarter 2 Increase/
US$000 US$000 (decrease)
----------- ----------- ---------
----------- ----------- ---------
Americas 16,908 17,477 3.4%
----------- ----------- ---------
Europe 11,595 11,806 1.8%
----------- ----------- ---------
Asia / Africa 8,933 7,013 (21.5)%
----------- ----------- ---------
Total 37,436 36,296 (3.0)%
----------- ----------- ---------Gross profit for the quarter amounted to US$16.2m, representing a gross margin of 45% which compares to a gross margin of 48% for the same period in 2007. The decrease in gross margin reflects the impact of the weakening US dollar and lower sales of higher margin Uni-Gold HIV product. Research and development expenditure remains at approximately 5% of revenues. Selling, general and administrative expenses of US$11.8m represents a decrease from US$12.3m in quarter 2, 2007. This reduction has been achieved through continued cost control and the impact of the restructuring programme announced in late 2007, which have outweighed the adverse impact of the continued weakening of the US dollar. Operating profit for the quarter was US$2.3m compared to US$1.8m in quarter 1, 2008, an increase of 30%. Profit after tax was US$1.5m and represented an increase of 44% when compared to quarter 1. Activities during the quarter This quarter represented an important quarter for our HIV business, including the following key developments:
-- Increased funding for the fight against HIV/AIDS was announced by
President Bush's PEPFAR programme. This will further drive the level of
testing being undertaken in the African market;
-- The results of an independent study published in the Journal of
Clinical Microbiology showed far superior performance by Trinity's Uni-Gold
Recombigen test when compared to currently available, FDA approved, CLIA
waived rapid HIV tests;
-- The launch of our HIV incidence assay for the detection of recent HIV
seroconversion. This product will assist global health agencies in
determining how to target their efforts and resources in combating the
spread of HIV.In addition, a number of other milestones were achieved during the quarter as follows:
-- We demonstrated our Destiny Max instrument at the MLTD (Mediterranean
League against Thromboembolic Diseases) conference in Athens, Greece. The
project is progressing according to schedule and the instrument was well
received at the conference;
-- We entered into an agreement with Akers Biosciences to distribute
their PIFA Heparin Platelet Factor-4 (HPF4) Rapid Assay in the USA and
Germany;
-- In accordance with our restructuring plan announced in December 2007,
we ceased production at our facility in Umea, Sweden. These products have
now been transferred to our manufacturing facilities in Jamestown, New York
and Bray, Ireland.Comments Commenting on the results, Kevin Tansley, Chief Financial Officer, said, "We have made significant progress this quarter. Revenues have grown by 6% and profit after tax has increased by 44% over the first quarter. We have continued to successfully control costs, with SG&A expenses showing a decrease over quarter 1, notwithstanding a further weakening of the US dollar. We have also been successful at managing our working capital, in particular the levels of inventory and receivables. At the same time, we have enhanced the financial structure of the Company, achieving more favourable timing of debt repayments whilst improving the overall cash position. This comes at a time when we continue to invest in key capital projects which will drive the future growth of the Company." Brendan Farrell, CEO, commented, "From a revenue perspective we are happy with our performance this quarter. Revenues from our Clinical Laboratory and Point of Care Divisions have both increased over the previous quarter. In particular, Point of Care revenues have grown by over 20% when compared to the first quarter of this year. The recent announcement of significantly increased funding under President Bush's PEPFAR programme for the fight against HIV/AIDS in Africa will provide a significant stimulus to this market. Given Trinity Biotech's already strong position in this market we are ideally positioned to benefit from this increased funding over the coming years. From a US market perspective we were also particularly pleased that an independent study found that Trinity's Uni-Gold Recombigen product demonstrated far superior performance compared to other similar products currently on the market. This comes at a time when greater emphasis is being placed on the need for higher product quality and accuracy. This quarter also contained a number of highlights from a new product perspective. In June we launched our HIV incidence assay which will greatly assist global health agencies in tracking the spread of HIV. This was followed by a new distribution agreement for a rapid test for Heparin Induced Thrombocytopenia and a well received demonstration of our new Destiny Max instrument at the MLTD conference in Athens, Greece." 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
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
(US$’000s except share June 30, June 30, June 30, June 30,
data) 2008 2007 2008 2007
(unaudited) (unaudited) (unaudited) (unaudited)
Revenues 36,296 37,436 70,548 74,146
Cost of sales (20,046) (19,404) (38,517) (38,709)
Cost of sales - share
based payments (15) (14) (33) (32)
----------- ----------- ----------- -----------
Gross profit 16,235 18,018 31,998 35,405
Other operating income 99 93 188 165
Research & development
expenses (1,938) (1,746) (3,784) (3,534)
Selling, general and
administrative
expenses (11,848) (12,302) (23,884) (24,318)
Indirect share based
payments (235) (365) (426) (707)
----------- ----------- ----------- -----------
Operating profit 2,313 3,698 4,092 7,011
Financial income 28 149 38 358
Financial expenses (552) (804) (1,227) (1,610)
----------- ----------- ----------- -----------
Net financing costs (524) (655) (1,189) (1,252)
----------- ----------- ----------- -----------
Profit before tax 1,789 3,043 2,903 5,759
Income tax expense (280) (429) (345) (234)
----------- ----------- ----------- -----------
Profit for the period 1,509 2,614 2,558 5,525
Earnings per ADR (US
cents) 7.3 13.8 12.9 29.1
Diluted earnings per
ADR (US cents) 7.3 13.4 12.9 28.4
Weighted average no.
of ADRs used in
computing earnings per
ADR 20,634,975 19,004,451 19,837,083 18,989,692
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
June 30, December 31,
2008 2007
US$‘000 US$‘000
(unaudited) (audited)
ASSETS
Non-current assets
Property, plant and equipment 25,574 26,409
Goodwill and intangible assets 107,671 104,928
Deferred tax assets 4,302 3,937
Other assets 925 896
------------- -------------
Total non-current assets 138,472 136,170
------------- -------------
Current assets
Inventories 42,365 44,420
Trade and other receivables 28,827 25,683
Income tax receivable 571 782
Derivative financial instruments 296 224
Cash and cash equivalents 6,246 8,700
------------- -------------
Total current assets 78,305 79,809
------------- -------------
------------- -------------
TOTAL ASSETS 216,777 215,979
============= =============
EQUITY AND LIABILITIES
Equity attributable to the equity holders of
the parent
Share capital 1,070 991
Share premium 159,886 153,961
Retained earnings (19,876) (22,908)
Translation reserve 1,458 797
Other reserves 4,765 4,004
------------- -------------
Total equity 147,303 136,845
------------- -------------
Current liabilities
Interest-bearing loans and borrowings 10,736 15,821
Income tax payable 242 86
Trade and other payables 21,651 24,779
Other financial liabilities 0 2,725
Provisions 100 100
------------- -------------
Total current liabilities 32,729 43,511
------------- -------------
Non-current liabilities
Interest-bearing loans and borrowings 27,006 26,312
Other payables 73 74
Deferred tax liabilities 9,666 9,237
------------- -------------
Total non-current liabilities 36,745 35,623
------------- -------------
------------- -------------
TOTAL LIABILITIES 69,474 79,134
------------- -------------
------------- -------------
TOTAL EQUITY AND LIABILITIES 216,777 215,979
============= =============
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: Contact:
Ms. Niamh Long
Trinity Biotech plc
Investor Relations Officer
Email Contact
(353)-1-2769800
Joe Diaz, Joe Dorame and Robert Blum
Lytham Partners, LLC
602-889-7900
Source: Trinity Biotech
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