Poor sales hit Trinity Biotech shares

SHARES in Trinity Biotech plunged yesterday after the company missed its third-quarter sales target.

The Bray, Co Wicklow company, which develops tests for viruses such as the flu and HIV, said although revenues in the third quarter were higher than at the same point in 2006, the figure was lower than expected. The company said the problem was due to “seasonal factors” with revenues impacted by lower flu antibody sales.

Shares in Trinity Biotech, which are now listed on the Nasdaq market in New York, fell by nearly 15% in early trading.

Revenues for the three months to end-September were up to $33.7m (€23.5m) from $33.3m in the same quarter in 2006.

But profits for the third quarter tumbled to $612,000 from $2.3m. The fall in profits was mainly the result of increasing expenses.

Trinity Biotech said the tax charge for the quarter represents an “unusually high” effective tax rate of 95% and was attributable to a deferred tax charge associated with inventory movements within the company during the quarter.

Chief executive Ronan O Caoimh said the year to date has seen growth across all of the company’s geographic locations and product areas with the exception of infectious diseases, which has been affected by the lower demand for flu antibodies, particularly in the Asian market.

“With the impact of outbreak-related diseases and seasonal factors, revenues can be expected to exhibit some fluctuation, especially in the context of a short 13-week reporting cycle. However, it is anticipated that the key areas of growth identified by the company of point of care, diabetes testing and haemostasis will make the company less susceptible to such factors in the medium term,” he said in a statement.

For the nine months to end-September, Trinity Biotech recorded revenues of $107m and made a profit of $6.3m.