Trinity Biotech Plc Q1 FY2023 earnings call

• Revenue: Q1 2023 revenues $17.2M, ongoing business ~$14M (+2% Y/Y). Autoimmune +35%, diabetes HbA1C consumable +15%, U.S. autoimmune >80% Y/Y.
• Hemoglobin products: Working with FDA for Premier Resolution hemoglobin variant instrument clearance, U.S. market intro H2 2023; next-gen diabetes HbA1c instrument Premier 9210 on track for early 2024 rollout with improved features.
• TrinScreen HIV product: Ready to launch, delayed by Kenyan legal challenges to HIV testing algorithm change, expects significant orders H2 2023 upon resolution.
• Portfolio transformation: Sold Fitzgerald Industries, raised ~$30M, used to reduce debt; secured $20M flexible term facility.
• Structural/operational initiatives: Cost reduction initiatives in core franchises, aiming for 50% gross margin and 20% operating margin; participation in AACC Annual Conference.

Revenues for Q1 2023 were $17.2 million, excluding COVID-focused PCR products and Fitzgerald industries revenues. Excluding those, ongoing business revenue was about $14 million, 2% higher than last year. Autoimmune clinical chemistry saw year-over-year growth of approximately 35%, diabetes HbA1C consumable products grew ~15%, and U.S. autoimmune business revenues increased over 80% Y/Y compared to Q1 2022. COVID-focused PCR products revenue in the quarter was ~$780,000, down from the prior year. Fitzgerald industries revenues were disposed in April 2023.

• Too early for full-year guidance. Q2 revenues expected around $14M. Key milestones in H2 2023: Kenya HIV orders, hemoglobin product launch, diabetes instrument updates. COGS benefits from supply chain initiatives expected towards end of Q3 and Q4.

• Legal challenges to HIV testing algorithm in Kenya delaying TrinScreen HIV product launch.
• Uncertainty around COVID revenue as it's hard to predict.
• Market risks related to product launches and supply chain execution for cost reduction and margin improvement.

Q: Can you break out what the COVID, the VTM revenue was in the quarter?

A: Aris Kekedjian said it was ~$780,000, slightly higher than last year but down ~$1.2M from a year ago.

Q: When do you think you'll start shipping product in Kenya?

A: Aris Kekedjian said the government is confident the legal challenge will be ruled in their favor, expecting to start with a $1 million order immediately, with a key court date in the second week of July.

Q: When do you think the diabetes instrument will hit the market?

A: Aris Kekedjian said they're expecting FDA news imminently, geared up team and technical sales resources, expecting to be ready for the coming quarter. John Gillard added on supply chain initiatives for the instrument.

Q: On the autoimmune business, and revenue guidance?

A: Aris Kekedjian said it's too early for full-year guidance, Q2 revenues expected around $14M, with key milestones in H2 2023.