MEDICAL DIAGNOSTICS firm Trinity Biotech has reported revenues of $22.6 million (€17.2 million) in its second quarter, down from $32.3 million for the same period last year.

The company attributed the fall to the divestiture of its coagulation business to Stago which took effect from April 30th.

Point-of-care revenues fell by 32.1 per cent year on year, a drop the company blamed on its decision to restrict shipments to a major HIV customer due to credit-related issues.

Clinical laboratory revenues were $14.2 million, a fall of 5.9 per cent when compared to $15.1 million in the second of 2009.

Gross profit for the quarter amounted to $11.2 million, representing a gross margin of approximately 49.3 per cent. A rise of 3.7 per cent on the same period last year, the company said the improvement was due to the divestiture of coagulation, its lowest margin product line.

Operating profit fell from $3.8 million in the second quarter of 2009 to $3.5 million in the current quarter due to the divestiture. Research and Development costs reduced by 32.7 per cent and selling and general administrative costs by 24.9 per cent owing to the transfer of personnel to Stago.

Pretax profit was $3.6 million, from $3.4 million last year. Earnings per share were up from 14.4 cent per share to 15½ cent per share, an increase of 7.6 per cent.

An increase in cash balances to $50 million and the elimination of bank debt during the quarter meant net financial income was $152,000 compared to an expense of $348,000 in the same quarter last year. “This was a very significant quarter for the company. We divested our coagulation product line for a profit of over $47 million. With the improved profitability and strong cash flows the company is performing very strongly,” said Trinity’s chief financial officer Kevin Tansley.