Biotech News - Trinity Biotech plc (ADR) (Public, NASDAQ:TRIB)

Trinity Biotech plc (ADR) (Public, NASDAQ:TRIB)

Trinity Biotech Announces Quarter 3 Results Revenues Increase 25%
and EBITDA Exceeds US$5 Million

October 26, 2006 -- Trinity Biotech plc (NASDAQ: TRIB) (DUBLIN:
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, 2006.

Revenues in quarter 3 2006 increased 25% to US$33.3 million compared
to US$26.7 million in quarter 3 2005. During the same period
operating profit before share option expenses increased from US$2.2
million to US$3.3 million. Profit for the period increased from
US$1.5 million in quarter 3 2005 to US$2.6 million, representing an
increase of 71%.

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

2005 2006
--------------- ---------------
Q1 – Q3 Q1 – Q3
--------------- ---------------
US$000 US$000 %
Increase
--------------- --------------- -----------
--

--------------- --------------- -----------
--
Clinical Chemistry 6,731 11,128
65.3%
--------------- --------------- -----------
--
Haemostasis 21,490 29,828
38.8 %
--------------- --------------- -----------
--
Infectious Diseases 33,130 32,109
(3.1)%
--------------- --------------- -----------
--
Point of Care 9,157 12,281
34.1 %
--------------- --------------- -----------
--
Total 70,508 85,346
21.0 %
--------------- --------------- -----------
--

Revenues for the nine months by geographical location were as
follows :
2005 2006
--------------- ---------------
Q1 – Q3 Q1 – Q3
--------------- ---------------
US$000 US$000 %
Increase
--------------- --------------- -----------
---

--------------- --------------- -----------
---
USA 36,200 42,402
17.1%
--------------- --------------- -----------
---
Europe 18,339 23,957
30.6%
--------------- --------------- -----------
---
Asia / Africa 15,969 18,987
18.9%
--------------- --------------- -----------
---
Total 70,508 85,346
21.0%
--------------- --------------- -----------
---

Gross profit for the quarter amounted to US$15.3 million,
representing a gross margin of 46.0%. This compares to a gross
margin of 48.1% for the same period in 2005 and 48.2% for Quarter 2.
The reduction in gross margin is associated with the recent
bioMerieux haemostasis acquisition which is comparable with the
Trinity haemostasis business and has inherently lower gross margins
than the Point of Care, Clinical Chemistry and Infectious Disease
product lines.
R&D expenses are broadly consistent with the same period last year
at US$1.7 million. The increase in selling, general and
administrative expenses from US$9.2 million in 2005 to US$10.3
million in the current quarter is primarily attributable to the
impact of the recent bioMerieux haemostasis acquisition.

The net effect of the above was an operating profit before share
options of US$3.3 million for the quarter compared to US$2.2 million
for the same period last year which represents margins of 9.9% and
8.1% respectively.

Commenting on the results, Rory Nealon, Chief Financial Officer,
said, "Our operating margin has increased from 8.1% in 2005 and 8.6%
last quarter to 9.9% in the current quarter. This is reflected in
our EPS which has increased by 18% from 11.4 cents in the previous
quarter to 13.5 cents this quarter and by 38% over the same period
in 2005. This significant improvement in profitability has primarily
resulted from the increased sales volumes created by the recent
bioMerieux acquisition. It has also resulted in an increase in our
EBITDA from US$3.6 million last quarter to US$5.1 million in the
current quarter."

Ronan O'Caoimh, CEO, commented, "The completion of the bioMerieux
haemostasis acquisition has had a significant impact on the
profitability and scale of Trinity. The Haemostasis product line
represented 35% of total sales in quarter 3 and we anticipate that
this will continue to grow as the bioMerieux related revenues
increase in quarter 4.

We are also pleased to announce that we have just acquired the
French distribution business of Nephrotek for a consideration of
US$730,000. The acquired distribution business is based in Paris and
currently distributes Trinity's product lines to the French market.
This acquisition will enable Trinity to sell directly in France
which is one of the largest diagnostics markets in Europe. Trinity
is now selling directly in the USA, Germany, the UK and France and
through a combination of distributors in approximately 75 other
countries around the world. Trinity plans to integrate the French
activities of its recently acquired bioMérieux haemostasis business
into this new operation which will increase the margins earned by
Trinity on these sales and enable us to further drive growth within
this market.

Trinity is also pleased to announce that it has recently recruited
Mr. David Oxley as Corporate Vice President of Point of Care and OTC
Business. David was previously VP of Government Affairs with
Orasure.

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 Three Months Three Months Nine Months Nine
Months
share data) Ended Ended Ended
Ended
September September September
September
30, 2006 30, 2005 30, 2006 30,
2005
(unaudited) (unaudited) (unaudited)
(unaudited)

Revenues 33,319 26,740 85,346
70,508

Cost of sales (17,962) (13,842) (44,296)
(36,470)
Cost of sales –
inventory write
off - -
(5,800) -
Cost of sales –
share based
payments (23) (29)
(72) (80)
------------ ------------ ------------ --------
----

Gross profit 15,334 12,869 35,178
33,958
Gross profit
before inventory
write off 15,334 12,869 40,978
33,958

Other operating
income 36 60
157 186

Research &
development
expenses (1,738) (1,610) (4,696)
(4,290)
S,G&A expenses (10,344) (9,172) (28,904)
(24,653)
Indirect share
based payments (330) (307) (915)
(966)
------------ ------------ ------------ --------
----

Operating profit 2,958 1,840 820
4,235
Operating profit
before inventory
write off 2,958 1,840 6,620
4,235

Financial income 331 70
796 300
Financial expenses (982) (270) (1,724)
(731)
------------ ------------ ------------ --------
----
Net financing
costs (651) (200) (928)
(431)
------------ ------------ ------------ --------
----

Profit / (Loss)
before tax 2,307 1,640 (108)
3,804

Income tax
(expense) /
credit 244 (148) 1,786
(392)
------------ ------------ ------------ --------
----

Profit / (Loss)
for the period 2,551 1,492 1,678
3,412
Profit for the
period before
inventory write
off 2,551 1,492 5,906
3,412

Earnings per ADR 13.8 10.0 9.7
23.5

Earnings per ADR
before inventory
write off 13.8 10.0 34.1
23.5

Diluted earnings
per ADR 13.5 9.6 9.7
23.0
Diluted earnings
before inventory
write off 13.5 9.6 33.2
23.0

Weighted average
no. of shares
used in computing
earnings per
share 73,995,302 59,402,312 69,260,423
58,032,535

The above financial statements have been prepared in accordance with
the
principles of International Financial Reporting Standards and the
Company's
accounting policies but does not constitute an interim financial
report as
defined in IAS34 (Interim Financial Reporting).

Trinity Biotech plc
Consolidated Balance Sheet

December 31,
September 30,
2005
2006
US$ `000
US$ `000

(unaudited)
ASSETS
Non-current assets
Property, plant and equipment 19,202
21,824
Goodwill and intangible assets 85,197
119,753
Deferred tax assets 3,277
6,713
Other assets
61 61
-------------- ---------
-----
Total non-current assets 107,737
148,351
-------------- ---------
-----

Current assets
Inventories 36,450
41,592
Trade and other receivables 20,885
34,937
Income tax receivable
649 625
Financial assets – restricted cash 9,000
15,500
Cash and cash equivalents 9,881
4,572
Derivative financial instruments -
67
-------------- ---------
-----
Total current assets 76,865
97,293
-------------- ---------
-----

-------------- ---------
-----
TOTAL ASSETS 184,602
245,644
==============
==============

EQUITY AND LIABILITIES
Equity attributable to the equity holders
of the parent
Share capital
830 967
Share premium 124,227
149,804
Retained earnings 6,280
8,946
Translation reserve
(1,622) (657)
Other reserves 3,903
4,014
-------------- ---------
-----
Total equity 133,618
163,074
-------------- ---------
-----

Current liabilities
Interest-bearing loans and borrowings 7,720
10,415
Convertible notes – interest bearing 7,203
3,657
Income tax payable 260
1,816
Trade and other payables 12,768
19,336
Other financial liabilities 3,707
3,074
Derivative financial instruments
44 -
Provisions
199 100
-------------- ---------
-----
Total current liabilities 31,901
38,398
-------------- ---------
-----

Non-current liabilities
Interest-bearing loans and borrowings 10,369
32,970
Convertible notes – interest bearing
1,836 -
Other tax payable
48 52
Other payables 102
2,632
Deferred tax liabilities 6,728
8,518
-------------- ---------
-----
Total non-current liabilities 19,083
44,172
-------------- ---------
-----
TOTAL LIABILITIES 50,984
82,570
-------------- ---------
-----

-------------- ---------
-----
TOTAL EQUITY AND LIABILITIES 184,602
245,644
==============
==============

The above financial statements have been prepared in accordance with
the
principles of International Financial Reporting Standards and the
Company's
accounting policies but does not constitute an interim financial
report as
defined in IAS34 (Interim Financial Reporting).

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