SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

TRINITY BIOTECH PLC

(Name of Registrant)

IDA Business Park
Bray, Co. Wicklow
Ireland

(Address of Principal Executive Office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F þ          Form 40-F o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o          No þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-                    

 

 

Press Release dated July 21, 2011

Contact:		Trinity Biotech plc		Lytham Partners LLC
		Kevin Tansley		Joe Diaz, Joe Dorame & Robert Blum
		(353)-1-2769800		602-889-9700
		E-mail: kevin.tansley@trinitybiotech.com

Trinity Biotech Announces Quarter 2 Financial Results
EPS increases by 16.8% to 18.1 cents per ADR

DUBLIN, Ireland (July 21, 2011).... 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 June 30, 2011.

Quarter 2 Results

Total revenues for Q2, 2011 were $19.5m which compares to $18.2m in Q2, 2010 (excluding Coagulation revenues), an increase of 7.0%.

Point-of-care revenues for Q2, 2011 increased by 3.6% when compared to Q2, 2010, with increased revenues being achieved in both of our key markets of Africa and the USA.

Continuing Clinical Laboratory (i.e. excluding Coagulation) revenues increased from $14.2m to $15.3m, which represents an increase of 7.9% compared to Q2, 2010. This increase is mainly due to higher infectious diseases and diabetes sales in the USA.

Revenues for Q2, 2011 by key product area were as follows:

		2010				2011				Increase/
		Quarter 2				Quarter 2				Decrease
		US$’000				US$’000				%
Point-of-Care			4,011				4,157				3.6	%
Continuing Clinical Laboratory			14,178				15,298				7.9	%
Continuing operations*			18,189				19,455				7.0	%
Coagulation			4,437				0
Total			22,626				19,455

*		Continuing operations reflects the company’s divestiture of its coagulation product line (shown separately)

Gross profit for Q2, 2011 amounted to $10.0m representing a gross margin of 51.4% which compares favourably to the gross margin of 49.3% for the same period in 2010. This improvement of 2.1% is partly attributable to the inclusion of one month of lower margin Coagulation revenues in the comparative period. The remainder of the increase is due to improved operational efficiencies.

Selling, General and Administrative (SG&A) expenses decreased by 22.9% to $5.2m compared to Q2, 2010. As in previous quarters, this was largely attributable to the transfer of sales and administrative personnel to Stago as part of the Coagulation divestiture. The decrease this quarter is less pronounced than in previous quarters as the Coagulation costs were only in place for one month of Q2, 2010.

Operating profit for Q2, 2011 was $3.9m, which is a 10.8% increase compared with Q2, 2010. Operating margin for Q2, 2011 has increased to 20.0%, which represents a significant improvement compared to 15.5% in Q2, 2010.

Net financial income for Q2, 2011 was $0.6m which compares to net financial income of $0.2m in Q2, 2010. This improvement is attributable to the elimination of bank debt and the increase in cash balances to $71.4m. The tax charge for Q2, 2011 was $0.7m which represents an effective tax rate of 14.5%.

Profit After Tax was $3.9m which is an increase of 18.2% over Q2, 2010. Meanwhile, EPS for Q2, 2011 increased by 16.8% from 15.5 cents to 18.1 cents.

Free Cash Flows for Q2, 2011 were $3.0m which is in line with our target of generating at least $1m per month. During the quarter there were other significant cash movements as follows:

•

the receipt of the first tranche of deferred consideration from Stago of $11.25m;

•

the payment of our first annual dividend of $2.1m; and

•

the payment of the first tranche of deferred consideration of $0.5m in respect of our acquisition of Phoenix Biotech.

The net result of these movements has been to increase our cash position by $11.6m to $71.4m.

Recent Developments

•

The Company received CE marking for the new Premier Hb9210 instrument, which represents regulatory approval in Europe. We have also filed our 510k regulatory submission with the FDA.

•

The Company paid a dividend of 10 cents per ADR. This was the first dividend in the Company’s history and it is intended that a dividend will be paid on an annual basis going forward.

•

In April, the Company received the first deferred consideration payment of $11.25m from Stago in relation to the divestiture of the Coagulation business in May 2010. The second, and final, deferred consideration payment of $11.25m is due to be received on 30 April, 2012 and similarly is unconditional and bank guaranteed.

•

During the quarter we paid the first tranche of deferred consideration ($0.5m) in relation to the acquisition of Phoenix Biotech Corp. Phoenix manufactures and sells a syphilis total antibody (IgG and IgM) test and is the only such FDA approved ELISA test on the market.

Comments

Commenting on the results, Kevin Tansley, Chief Financial Officer said “This quarter’s results were very strong. Revenues have grown by 7% and operating profits by 11%. Meanwhile our EPS of 18.1 cents represents growth of over 16% and for the fifth quarter in a row we have established a new record for quarterly earnings. We also continue to generate significant cash with our free cash flows reaching close to $7m for the first six months of the year.”

Ronan O’Caoimh, CEO stated “This quarter’s results have re-emphasised Trinity’s strong growth trajectory. Revenues have grown by 7% and this is before we see the impact of our new Premier instrument which has just been launched in Europe and our new range of point-of-care products, the first of which will enter production later this year. It is now just over a year since we divested our coagulation business and in that short time we have repositioned Trinity into a company with robust earnings growth and an extensive product development pipeline.”

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 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
		June 30,				June 30,				June 30,				June 30,
(US$000’s except share data)		2011				2010				2011				2010
		(unaudited)				(unaudited)				(unaudited)				(unaudited)
Revenues			19,455				22,626				38,109				51,639
Cost of sales			(9,451	)			(11,469	)			(18,548	)			(26,953	)
Gross profit			10,004				11,157				19,561				24,686
Gross profit %			51.4	%			49.3	%			51.3	%			47.8	%
Other operating income			233				527				530				583
Research & development expenses			(800	)			(1,198	)			(1,487	)			(2,992	)
Selling, general and administrative expenses			(5,217	)			(6,766	)			(10,263	)			(14,705	)
Indirect share based payments			(332	)			(211	)			(754	)			(387	)
Operating profit			3,888				3,509				7,587				7,185
Non-recurring items			—				47,061				—				47,061
Financial income			631				268				1,273				278
Financial expenses			(3	)			(116	)			(7	)			(357	)
Net financing income/(expense)			628				152				1,266				(79	)
Profit before tax			4,516				50,722				8,853				54,167
Income tax expense on operating activities			(654	)			(394	)			(1,239	)			(682	)
Income tax credit on non-recurring items			—				354				—				354
Profit for the period			3,862				50,682				7,614				53,839
Profit for the period (excluding non-recurring items)			3,862				3,267				7,614				6,424
Earnings per ADR (US cents)			18.1				240.1				35.6				255.2
Earnings per ADR (US cents) — excluding non-recurring items			18.1				15.5				35.6				30.4
Diluted earnings per ADR (US cents)			17.3				235.0				34.2				251.2
Diluted earnings per ADR (US cents) — excluding non-recurring items			17.3				15.1				34.2				30.0
Weighted average no. of ADRs used in computing basic earnings per ADR			21,352,012				21,109,023				21,369,919				21,098,574

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,				March 31,				Dec 31,
		2011				2011				2010
		US$ ‘000				US$ ‘000				US$ ‘000
		(unaudited)				(unaudited)				(audited)
ASSETS
Non-current assets
Property, plant and equipment			7,260				6,630				5,999
Goodwill and intangible assets			41,799				40,267				37,248
Deferred tax assets			4,158				4,385				4,680
Other assets			534				11,729				11,623
Total non-current assets			53,751				63,011				59,550
Current assets
Inventories			18,971				18,636				17,576
Trade and other receivables			23,686				24,078				25,529
Income tax receivable			199				91				217
Cash and cash equivalents			71,422				59,818				58,002
Total current assets			114,278				102,623				101,324
TOTAL ASSETS			168,029				165,634				160,874
EQUITY AND LIABILITIES
Equity attributable to the equity holders of the parent
Share capital			1,097				1,094				1,092
Share premium			2,055				1,743				161,599
Accumulated surplus/(deficit)			139,928				137,705				(25,412	)
Other reserves			4,008				4,008				4,008
Total equity			147,088				144,550				141,287
Current liabilities
Interest-bearing loans and borrowings			176				174				162
Income tax payable			770				890				597
Trade and other payables			12,153				12,680				11,447
Provisions			50				50				50
Total current liabilities			13,149				13,794				12,256
Non-current liabilities
Interest-bearing loans and borrowings			34				74				111
Other payables			62				52				30
Deferred tax liabilities			7,696				7,164				7,190
Total non-current liabilities			7,792				7,290				7,331
TOTAL LIABILITIES			20,941				21,084				19,587
TOTAL EQUITY AND LIABILITIES			168,029				165,634				160,874

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

		Three Months				Three Months				Six Months				Six Months
		Ended				Ended				Ended				Ended
		June 30,				June 30,				June 30,				June 30,
		2011				2010				2011				2010
(US$000’s)		(unaudited)				(unaudited)				(unaudited)				(unaudited)
Cash and cash equivalents at beginning of period			59,818				6,222				58,002				6,078
Operating cash flows before changes in working capital			5,165				4,415				9,938				9,326
Changes in working capital			(876	)			1,468				104				1,689
Cash generated from operations			4,289				5,883				10,042				11,015
Net Interest and Income taxes received/(paid)			808				(352	)			1,046				(577	)
Capital Expenditure & Financing (net)			(2,094	)			(1,111	)			(4,199	)			(3,435	)
Free cash flow			3,003				4,420				6,889				7,003
Proceeds from sale of Coagulation product line			11,250				66,517				11,250				66,517
Cash paid to acquire Phoenix Bio-tech			(500	)			—				(1,500	)			—
Repurchase of own company shares			—				—				(1,070	)			—
Dividend Payment			(2,149	)			—				(2,149	)			—
Repayment of bank debt			—				(27,117	)			—				(29,556	)
Cash and cash equivalents at end of period			71,422				50,042				71,422				50,042

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).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: July 25, 2011