Trinity Biotech(US:TRIB)2020-11-17 21:53Financial Data and Key Metrics Changes - Revenues increased from $24.6 million to $32 million, representing a growth of over 30% compared to the same quarter last year [5] - Gross margin improved from 41% to 52.4%, driven by increased revenues and the spreading of fixed costs over a wider base [6] - Operating profit rose from nearly $1.3 million to close to $9.1 million, attributed to higher revenues, improved gross margin, and lower indirect costs [9] - Profit after tax for the quarter was over $7.3 million compared to close to breakeven last year, resulting in an EPS of $0.35 [11] Business Line Data and Key Metrics Changes - Point-of-care revenues decreased by 47% to $2.1 million, while Clinical Laboratory revenues increased by 45% to $30 million [20] - The decline in point-of-care revenues was attributed to the impact of COVID-19 and an unusually high quarter in Q3 2019 [20] - Clinical Laboratory revenues did not fully return to pre-COVID-19 levels, particularly in the diabetes business, which saw slow instrument placements [21] Market Data and Key Metrics Changes - Strong sales of COVID-19 related products significantly boosted revenues, including the COVID-19 IgG ELISA antibody test and FDA-approved PCR viral transport media products [22][26] - The company filed for emergency use authorization for its COVID-19 IgG ELISA antibody test and expects to obtain a CE Mark for the product soon [22][23] Company Strategy and Development Direction - The company is focusing on expanding its COVID-19 testing capabilities and expects antibody testing to become more prevalent with the onset of vaccinations [24][36] - Development of a rapid point-of-care COVID-19 test is underway, with expectations to file for emergency use authorization in February [25] - The company is also working on the approval of its HIV trial screen in Africa, with expectations for market entry by mid-2021 [39] Management's Comments on Operating Environment and Future Outlook - Management expressed uncertainty regarding future revenues due to the unpredictable nature of COVID-19 and its impact on traditional business [36] - There is confidence in a strong fourth quarter, but management refrained from providing specific guidance due to ongoing uncertainties [56] Other Important Information - Total indirect costs fell from $8.8 million to $7.7 million, a reduction of over 12% [9] - Cash generation from operations for the quarter was just over $7.2 million, impacted by working capital outflows [15] - The company’s cash balances increased by $4.3 million for the quarter, bringing total cash to just under $20 million [16] Q&A Session Summary Question: Revenue generation from COVID-related products - Management indicated that COVID-related revenues were approximately $12 million to $13 million for the quarter, with expectations for continued revenue generation [34][36] Question: Antibody testing necessity post-vaccination - Management noted that while blanket vaccinations may be recommended, individuals may still seek antibody testing to confirm immunity [38] Question: Update on HIV trial screen approval - Management reported that clinical trials for the HIV trial screen have been stalled due to COVID-19, with expectations for submission to WHO by mid-2021 [39] Question: COVID sales distribution - COVID-related sales are primarily in the U.S. but also distributed globally [42] Question: PCR testing in the lab - Management confirmed that PCR testing is expected to commence soon, pending state authorization, with potential annual revenues of $2 million to $4 million [54][56] Question: Instrument placements in Brazil - Management stated that instrument placements in Brazil have effectively stopped due to currency issues [50]