Trinity Biotech Announces Quarter 3 Financial Results, Acquisition of Blood Bank Screening Business and FDA Approval of HIV-2 Claim

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Thursday, October 17th 2013
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DUBLIN, Ireland, Oct. 17, 2013 (GLOBE NEWSWIRE) -- 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 September 30, 2013, the acquisition of the blood bank screening business of Lab 21 and FDA approval for a claim for HIV-2 on its Unigold rapid HIV product.

Quarter 3 Results                                                                 

Total revenues for Q3, 2013 were $24.1m which compares to $20.9m in Q3, 2012, an increase of 15.7%. However, this includes $1.8m of acquisition revenues. Excluding this impact, revenue growth for the quarter was 7%.

Point-of-Care revenues for Q3, 2013 increased by 11.9% when compared to Q3, 2012. This increase was mainly attributable to continued strong demand for HIV products in Africa.

Clinical Laboratory revenues increased from $16.1m to $18.8m, which represents an increase of 16.8% compared to Q3, 2012. Again excluding acquisition revenue, the increase during the quarter was approximately 6%. This growth was primarily driven by the continuing high level of Premier placements, 81 this quarter versus 54 in the equivalent quarter last year.   

Revenues for Q3, 2013 were as follows:

  2012
Quarter 3
2013
Quarter 3
 
Increase
  US$'000 US$'000 %
Point-of-Care 4,751 5,315 11.9%
Clinical Laboratory 16,100 18,806 16.8%
Total 20,851 24,121 15.7%

Gross profit for Q3, 2013 amounted to $12.1m representing a gross margin of 50.3%, which is lower than the 51% achieved in Q3, 2012. This decrease is mainly due to the impact of lower margins on the higher level of Premier instrument sales achieved during the quarter.

Research and Development expenses have increased from $0.8m to $0.9m when compared to the equivalent quarter last year, whilst Selling, General and Administrative (SG&A) expenses have increased from $5.1m to $5.9m over the same period. In both cases this increase is due to the impact of the Immco acquisition.

Operating profit has increased from $4.3m to $4.9m for the quarter, an increase of 14%. Meanwhile operating margin for the quarter was 20.5%.

During the quarter the company recognised once off charges totalling $8.2m consisting of:

  • a charge of $5.7m in relation to taking a HIV-2 licence, and
  • a charge of $2.5m in relation to reorganisation, redundancy and acquisition costs associated with the blood bank business acquired from Lab 21.

Further information on each of these charges is given below.

Net financial income was approximately $0.2m and represents a decrease compared to $0.6m in Q3, 2012. This is due to lower prevailing deposit interest rates and a decrease in the level of funds on deposit, mainly due to the recent acquisition expenditure and dividend payment.

The tax charge for Q3, 2013 was $0.5m which represents an effective tax rate of 9.9% compared to 9.3% in Q3, 2012.

Profit After Tax before the Medical Device Excise Tax (MDET) and once off charges increased from $4.5m to $4.6m, an increase of 4%. EPS (excluding MDET and once off charges) for the quarter increased to 21.1 cents from 20.7 cents in Q3, 2012. 

Earnings before interest, tax, depreciation, amortisation and share option expense for the quarter was $6.4m which compares to $5.6m in Q3, 2012.

Blood Bank Screening Acquisition

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