Trinity Biotech Announces First Quarter 2009 Financial Results

DUBLIN, IRELAND--(Marketwire - April 29, 2009) - 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, 2009.

Revenues for the quarter decreased to US$31.1m from US$32.2m, on a constant currency basis, compared to the same period last year, representing a fall of US$1.1m or 3.5%. Point-of-Care revenues increased substantially, growing by 43.3% largely driven by increased HIV sales in Africa. Clinical Laboratory revenues decreased by 8.7%, primarily attributable to a slowdown in the Company’s antigen/antibody trading business, Fitzgerald, where customers have made conscious decisions to reduce inventory levels due to the current global recession and secondly due to a fall in haemostasis revenues in line with expectations.

Revenues for the three months by key product area were as follows :

 2008 2008 Quarter 1 2009 %Increase/ Quarter 1 Adjusted* Quarter 1 (decrease) ---------- ---------- ---------- --------- US$000 US$000 US$000 ---------- ---------- ---------- --------- ---------- ---------- ---------- --------- Total Clinical Laboratory 30,917 28,959 26,435 (8.7%) ---------- ---------- ---------- --------- Point-of-Care 3,336 3,260 4,671 43.3% ---------- ---------- ---------- --------- Total 34,253 32,219 31,106 (3.5%) ---------- ---------- ---------- --------- * Revenues for the first quarter of 2008 have been adjusted to reflect exchange rates prevailing in the first quarter of 2009 

Gross profit for the quarter amounted to US$14.3 million representing a gross margin of 46% which is in line with the same period in 2008. Research and Development expenses amounted to US$1.8m, representing a decrease of 4%. SG&A expenses have fallen by 20% from US$12.0 million in quarter 1, 2008 to US$9.6m million in the current quarter. This reduction reflects the impact of the cost saving measures which we have implemented, lower depreciation and amortization charges due to the impairment charge taken in quarter 4, 2008 and more favourable exchange rates. The tax charge for the quarter was US$0.3m representing an effective tax rate of 9.1%.

Operating profit for the quarter amounted to US$3.0 million, which represents an increase of 71% over the first quarter of 2008. Net income for the quarter increased by 139% to US$2.5 million, or US$0.12 per share (ADR) from US$1.0 million, or US$0.055 per share (ADR) versus the first quarter of 2008.

Ronan O’Caoimh, CEO, commented, “This quarter has shown that Trinity is not immune to the current economic crisis. Overall we have seen our revenues fall in real terms by 3.5%, principally driven by lower Fitzgerald revenues and a fall in haemostasis revenues as expected. However, on a more positive note our point-of-care revenues have grown significantly quarter on quarter, primarily driven by increased HIV sales in Africa. Also, and most importantly, we have seen a substantial increase in profitability, which as I have stated before, is our main focus this year.

The highlight for us this quarter was the tremendous reception that Destiny Max has received in worldwide markets since its launch in December 2008. We have been hugely encouraged by the feedback that we have received from customers and are eagerly awaiting our launch in the U.S. market in the next couple of months.”

Commenting on the results, Kevin Tansley, Chief Financial Officer, said “We are very pleased that, notwithstanding lower revenues, we have been able to achieve substantially improved profitability this quarter. While some of this increase in profitability is attributable to the favourable impact of the impairment charge taken in 2008, the net increase reflects the progress made in recent quarters to reduce our operating cost structure. As the first quarter typically represents our weakest quarter due to seasonal factors, we are now, given our reduced cost base, well positioned for greater profitability in the future as revenues increase.”

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 Income Statements Three Three Months Months Ended March Ended March 31, 2009 31, 2008 (US$000’s except share data) (unaudited) (unaudited) Revenues 31,106 34,253 Cost of sales (excluding service costs) (15,423) (16,887) ----------- ----------- Gross profit (excluding service costs) 15,683 17,366 Gross profit % (excluding service costs) 50.4% 50.7% ----------- ----------- Cost of sales - instrument servicing costs (1,370) (1,603) Gross profit (including service costs) 14,313 15,763 Gross profit % (including service costs) 46.0% 46.0% Other operating income 204 89 Research & development expenses (1,776) (1,845) Selling, general and administrative expenses (9,601) (12,035) Indirect share based payments (98) (191) ----------- ----------- Operating profit 3,042 1,781 Interest income 1 9 Interest expenses (289) (675) ----------- ----------- Net financing costs (288) (666) ----------- ----------- Profit before tax 2,754 1,115 Income tax expense (250) (66) ----------- ----------- Profit for the period 2,504 1,049 Earnings per ADR (US cents) 12.0 5.5 Diluted earnings per ADR (US cents) 12.0 5.5 Weighted average no. of ADRs used in computing earnings per ADR 20,854,395 19,039,191 The above financial statements have been prepared in accordance with the principles of International Financial Reporting Standards and the Company’s accounting policies but do not constitute an interim financial report as defined in IAS 34 (Interim Financial Reporting). Trinity Biotech plc Consolidated Balance Sheets March 31, December 31, 2009 2008 US$ ‘000 US$ ‘000 (unaudited) (audited) ASSETS Non-current assets Property, plant and equipment 11,489 11,836 Goodwill and intangible assets 39,750 38,544 Deferred tax assets 2,879 3,051 Other assets 773 877 ------------ ------------ Total non-current assets 54,891 54,308 ------------ ------------ Current assets Inventories 40,984 42,317 Trade and other receivables 25,950 27,418 Income tax receivable 324 282 Cash and cash equivalents 2,589 5,184 ------------ ------------ Total current assets 69,847 75,201 ------------ ------------ ------------ ------------ TOTAL ASSETS 124,738 129,509 ============ ============ EQUITY AND LIABILITIES Equity attributable to the equity holders of the parent Share capital 1,070 1,070 Share premium 159,854 159,864 Accumulated deficit (96,881) (99,493) Translation reserve (1,109) (9) Other reserves 4,488 4,473 ------------ ------------ Total equity 67,422 65,905 ------------ ------------ Current liabilities Interest-bearing loans and borrowings 13,835 12,656 Income tax payable 54 5 Trade and other payables 18,677 22,969 Derivative Financial Instruments 13 27 Provisions 50 50 ------------ ------------ Total current liabilities 32,629 35,707 ------------ ------------ Non-current liabilities Interest-bearing loans and borrowings 20,251 23,465 Other payables 59 59 Deferred tax liabilities 4,377 4,373 ------------ ------------ Total non-current liabilities 24,687 27,897 ------------ ------------ ------------ ------------ TOTAL LIABILITIES 57,316 63,604 ------------ ------------ ------------ ------------ TOTAL EQUITY AND LIABILITIES 124,738 129,509 ============ ============ 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 Statement of Cash Flows March 31, March 31, 2009 2008 US$ ‘000 US$ ‘000 (unaudited) (unaudited) Cash and cash equivalents at beginning of period 5,184 8,700 Operating cash flows before changes in working capital 4,081 3,911 Changes in Working Capital (1,769) (2,066) ----------- ----------- Cash generated from operations 2,312 1,845 Net Interest and Income taxes paid (260) (664) Capital Expenditure (2,501) (2,623) Repayment of bank debt (2,146) (4,183) ----------- ----------- Cash and cash equivalents at end of period 2,589 3,075 ----------- -----------