Trinity Biotech(US:TRIB)2022-12-15 19:11Financial Data and Key Metrics Changes - Total revenues for Q3 2022 were $19.5 million, down from $22 million in Q3 2021, reflecting a decrease of approximately 23% [6][27] - Gross margin for the quarter was 10.3%, significantly impacted by inventory write-downs; excluding these, the gross margin would have been 34.4%, compared to 40.4% in Q3 2021 [14][15] - Operating loss for Q3 2022 was $7.1 million, compared to an operating profit of $2.8 million in Q3 2021 [27] - Net loss after tax was $8.9 million in Q3 2022, compared to a profit of $1.3 million in Q3 2021 [31][32] Business Line Data and Key Metrics Changes - Excluding COVID-focused PCR products, revenues for Q3 2022 were $19.2 million, a 2% increase year-over-year and a 6% increase sequentially [39] - The haemoglobins and Fitzgerald businesses contributed to a strong year-over-year revenue increase of 30% [40] - Autoimmune products saw a 20% quarter-over-quarter growth due to optimized capacity and pricing changes [41] Market Data and Key Metrics Changes - Strong demand for haemoglobin products was noted in Asia-Pacific with over 50% year-over-year revenue growth and over 40% in Latin America [42] - Preliminary estimates for Q4 indicate continued growth momentum in haemoglobin instrument placements and improving global HIV test demand [44] Company Strategy and Development Direction - The company is focusing on streamlining its product portfolio by eliminating loss-making legacy products and consolidating production facilities [53] - A new flagship diabetes HbA1c instrument, the Premier 9210, is expected to launch in Q3 next year, aimed at improving gross margins [46][48] - The company is also pursuing partnerships to leverage its lateral flow biological development capabilities and enhance its distribution channels [51][52] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by rising input prices and the need for strategic price adjustments [18][89] - The company expects to end the year with a run rate of around $75 million, with initiatives in place to improve revenue in early 2023 [44][79] - Management expressed confidence in the growth potential of the haemoglobins business, particularly in high-growth markets [58] Other Important Information - The company recorded significant excess and obsolescence charges related to inventory totaling $4.7 million, impacting financial results [7][11] - Impairment charges of $2.3 million were recorded, primarily related to the autoimmune smart reader project and Tri-stat inventory [23][25] Q&A Session Summary Question: What is the expected number of Premier Instruments on the market by 2024? - Management indicated that they expect to have at least three versions of the Premier systems on the market by 2024, focusing on high-growth markets [67][69] Question: Is there enough capacity in Jamestown for continued consolidation? - Management confirmed that the Jamestown site is flexible and will not be closing the Buffalo site, as they are expanding autoimmune manufacturing capabilities [71][72] Question: Any updates on refinancing the remaining portion of the debt? - Management is examining options for refinancing as part of a strategic transaction, with no immediate critical need [75][78] Question: Guidance on gross margin going forward? - Management refrained from providing specific guidance due to various moving pieces but targeted a gross margin level of 40%-45% over the next two to three years [88][89] Question: How did the lab in Buffalo perform this quarter, particularly the Sjogren's test? - The Sjogren's test has shown significant growth, with revenues around $3.5 million, and management sees potential for further scaling [100][108]