Trinity Biotech operating profits dip

Trinity Biotech has reported a second-quarter operating profits of $2.3 million compared with $3.7 million for the same period a year ago.

The Nasdaq and Dublin-listed company said revenues dipped 3 per cent to $36.3 million, down year-on-year from the $37.4 million recorded in the three months to the end of June 2007.

The company said this was because sales of its HIV diagnostic kits to Africa were particularly strong in the second quarter of 2007 "and have now reverted to more normalised levels".

Trinity Biotech manufactures medical diagnostic equipment and said gross profit for the quarter came to $16.2 million, representing a gross margin of 45 per cent.

This compares to a gross margin of 48 per cent for the same period in 2007.

Brendan Farrell, ceo said the company had made progress over the period and was continuing to control costs.

"From a revenue perspective we are happy with our performance this quarter. Revenues from our clinical laboratory and point of care divisions have both increased over the previous quarter," he said.

Reduced administrative and sales expenses, down to $11.8 million from $12.3 million, "have outweighed" the impact of the weaker US dollar.

The company said research and development expenditure remains at approximately 5 per cent of revenues.

Responding to the data Goodbody stockbrokers said while sales were slightly lower than forecasts, earnings per share, at 7.3 US cents were 6 per cent were higher than expected.