Trinity plans buyback scheme as share price drops by 2pc
SHARES in Bray-based biotechnology firm Trinity Biotech dipped more than 2pc in early trading on the Nasdaq in New York yesterday after the company said revenue from continuing operations slipped nearly 6pc to $18.7m (€13.4m) in the third quarter.
The company, which sells products used to detect HIV and STDs, noted that revenue from its point-of-care business line was 8pc higher year on year at $4.2m, but that continuing clinical laboratory revenues were down 9pc to $14.5m.
The firm said that decline was attributable to the combined impact of moving to a distribution selling model in France, Germany and the UK following the divestiture of its coagulation business, and a weaker dollar.
The company's earnings per share (EPS) climbed 13pc to 16.5c in the period, while the group is effectively sitting on a $76.3m cash pile.
Trinity Biotech chief executive Ronan O'Caoimh said the third-quarter results were the first quarterly results after the sale of its coagulation business.
"Despite the divestiture, our EPS continues to grow, with this quarter's EPS reaching an all-time high for the company," he said.
Trinity Biotech intends to undertake a share buyback programme but said that certain legal hurdles needed to be cleared first.
Approval is being sought in Irish courts for the buyback, which the company hopes to initiate in December.