Release Date: August 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Trinity Biotech PLC (TRIB, Financial) reported over 50% quarter-on-quarter revenue growth in point-of-care revenue, driven by the successful scaling of rapid HIV test output.
- The company achieved a 45% improvement in operating profitability before impairment charges and restructuring costs quarter over quarter.
- Trinity Biotech PLC (TRIB) is on track to achieve annualized run rate revenues of approximately $75 million by Q2 2025 with $20 million in EBITDASO.
- The company successfully implemented further automation of manufacturing processes, reducing the net cost of manufacturing.
- Trinity Biotech PLC (TRIB) has made significant progress in its comprehensive transformation plan, including offshoring manufacturing and optimizing the supply chain.
Negative Points
- Clinical laboratory revenues decreased by 4.6% compared to Q2 2023, primarily due to lower hemoglobins revenues.
- The company incurred restructuring costs totaling $1.9 million related to its comprehensive transformation plan.
- TrinScreen HIV sales are currently diluting the overall margin percentage, although improvements are expected in the future.
- Net loss from continuing operations was $6.8 million in the quarter, compared to $18.3 million in the same quarter last year.
- The cash balance decreased from $5.8 million at March 31 to $5.3 million at the end of June, with cash used by operations amounting to $1.1 million in the quarter.
Q & A Highlights
Q: How did TrinScreen HIV's performance compare to internal expectations, and is the $8 million revenue target for 2024 still achievable?
A: John Gillard, CFO, stated that TrinScreen HIV met expectations, with uncertainties around ordering patterns and manufacturing scale-up being managed. The company is on track for the $8 million target and is assessing potential upside for the rest of the year.
Q: What drove the strong performance in clinical chemistry, and is it sustainable?
A: John Gillard explained that price increases for certain products drove the growth, which is expected to be sustainable in the short to medium term. Market challenges have also allowed for some beneficial switching.
Q: When will the new Premier instruments be available, and how will they impact sales?
A: John Gillard clarified that the focus is on a new column system rather than new instruments. The rollout is ongoing, and the new system allows for more aggressive pricing and market penetration, expected to positively impact sales by Q4.
Q: What is the timeline for locking in the CGM design, and how do the trials compare to previous ones?
A: John Gillard mentioned that design finalization is expected by Q1 or early Q2 next year. The trials are similar to past ones but involve different protocols due to the device's invasive nature. The decision on trial scale and global reach is pending.
Q: How will the new distribution partner for clinical chemistry products impact the business?
A: John Gillard expects the partnership to be positive, providing access to new sales contacts in the UK and enhancing resource focus, which should be gross profit and revenue accretive.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
