Trinity Biotech Announces Q1 2024 Financial Results and Reiterates Guidance

Core Insights - Trinity Biotech plc is on track to achieve approximately $20 million of annualized run-rate EBITDASO on annualized revenues of approximately$75 million by Q2 2025, driven by growth in existing businesses and operational efficiencies [1][2] - The company reported a strong sequential growth of 39% quarter-on-quarter in Point-of-Care revenues, primarily due to the successful rollout of TrinScreen HIV test production [1][2] - Operational efficiencies have led to a 3.6 percentage point increase in gross margin percentage quarter-on-quarter, with further improvements expected through 2024 and into early 2025 [1][2] Business Performance - Total revenues for Q1 2024 were $14.7 million, a slight decrease of 0.8$14.8 million in Q1 2023 [4][29] - The Point-of-Care portfolio generated revenues of $3.0 million for Q1 2024, reflecting a 38.5$2.2 million in Q1 2023 [4][6] - TrinScreen HIV sales reached $1.2 million in Q1 2024, with total orders for 2024 supply amounting to$6 million [2][4] Profitability Improvements - The net loss decreased from $5.5 million in Q4 2023 to$3.3 million in Q1 2024, marking a 40% improvement [2][12] - EBITDASO improved by 62% compared to Q4 2023, with expectations for further improvements through 2024 [2][12] - Selling, general and administrative expenses decreased to $7.5 million in Q1 2024 from$8.6 million in Q1 2023, driven by cost-saving initiatives [10][11] Operational Initiatives - The company is implementing a comprehensive transformation plan that includes optimizing supply chains and centralizing corporate services [3][5] - Significant progress has been made in offshoring manufacturing activities, with plans to cease main manufacturing at the Kansas City plant by the end of 2024 [5] - The company has engaged a consultancy for the design of its next-generation Continuous Glucose Monitoring system and is progressing towards a pre-pivotal clinical trial [5] Financial Position - Cash balance increased from $3.7 million at the end of Q4 2023 to$5.8 million at the end of Q1 2024 [19] - The company incurred investing cash outflows of $14.0 million in Q1 2024, primarily related to the acquisition of Waveform assets [19][31] - The renegotiation of the term loan resulted in a reduction of net financial expenses from$2.4 million in Q1 2023 to $0.2 million in Q1 2024 [12][14] Market Compliance - The company received a deficiency letter from Nasdaq regarding the market value of publicly held shares falling below the minimum requirement [21] - A staff determination letter indicated that the company did not regain compliance by the deadline, but it intends to request a hearing to avoid delisting [22][23]