Pre-tax profits at Trinity Biotech slipped by 62 per cent in the first quarter, hit by the cost of expanding its US sales force.
While revenues were broadly unchanged from the same quarter last year at $16.4 million (€13.8 million), pre-tax profits fell to $0.75 million from $1.96 million a year earlier. Adjusted earnings per share fell to 1.3 cents from 3.8 cents.
The company attributed the fall in pre-tax profit from an average of $2 million per quarter last year to the increase in its US direct sales and marketing operation from around 30 people to 70 people in the quarter.
As a result, its selling, general and administrative expenses jumped to $5.7 million from $4.3 million in the fourth quarter.
The sales force was expanded to handle the launch of Trinity Biotech's recently approved Unigold HIV product and to reclaim distribution of its Clark and Microtrak product ranges from Wampole Laboratories, a division of Inverness Medical.
"We are confident that during the rest of the year this extra investment in sales and marketing will more than pay for itself with a significant increase in sales of Unigold HIV, an increase in our coagulation market share and a successful recovery of the majority of the Wampole business," Trinity Biotech's chief financial officer, Mr Rory Nealon said. Sales of HIV products, including Unigold, increased by 60 per cent in the quarter.
Research and development costs also rose in the quarter to $1.2 million, or 7.2 per cent of revenues, from $0.9 million in the fourth quarter.
Shares in the company, which is listed on the Nasdaq, gave up 15 cents or 4 per cent to $3.30 in the wake of the results yesterday afternoon. In Dublin, the shares were unchanged at €3.25.
