-Business performance on track to achieve approximately $20 million of annualized run-rate EBITDASO1 on annualized revenues of approximately $75 million by Q2 2025- -Strong sequential 39% Q/Q growth on Point-of-Care revenues associated with successful rollout and scaling of HIV test production- -Disciplined execution of operational efficiencies led to 3.6 percentage point Q/Q increase in gross margin percentage with further improvements expected through 2024 and into early 2025- DUBLIN, Ireland, May 23, 2024 (GLOBE NEWSWIRE) -- Trinity Biotech plc (NASDAQ:TRIB), a commercial stage biotechnology company focused on human diagnostics and diabetes management solutions, including wearable biosensors, today announced the Company's results for the quarter ended March 31, 2024. Existing Business - Key Highlights Strong Quarter-on-Quarter Revenue and Profitability Improvements Strong demand and output in TrinScreen HIV drove a 10% quarter-on-quarter revenue increase with 39% quarter on quarter revenue growth in Point-of-Care ("PoC"). Continued disciplined execution on profitability enhancing initiatives contributed to: a decrease in the net loss from $5.5m in Q4, 2023 to a net loss of $3.3m for Q1, 2024, a 40% improvement, and a 62% improvement on our EBITDASO position when compared to Q4, 2023. Based upon strong Q1, 2024 execution and continued momentum in the new management team's Comprehensive Transformation Plan (see below), the Company expects further gross margin and EBITDASO improvement through 2024 and into early 2025. Company reiterates guidance of approximately $20 million of Annualized run-rate EBITDASO1 on annualised run-rate revenues of approximately $75 million by Q2, 2025. This outlook is predicated solely on growth from the existing businesses including haemoglobin testing and HIV, and planned improvements to operating margins, with no contribution from the recently acquired biosensor business. TrinScreen HIV Growth 39% quarter on quarter increase in revenue from our PoC portfolio driven by increased sales of our new TrinScreen HIV product. Successful ramp up of TrinScreen HIV production in the quarter with sales of $1.2m recognised in Q1, 2024. TrinScreen HIV revenue was dilutive to our overall gross margin percentage in Q1, 2024, as we invested in training additional staff to support the ramp up in production. However, we do expect near term improvements in gross margin over the coming two quarters with additional automation coming online in Q2, 2024 through repurposing existing equipment and further supply chain optimisations. Additional improvements in profitability are expected later in the year as we move to offshore downstream assembly. Total orders of $6m for TrinScreen HIV for 2024 supply received to date, with revenue of over $8m expected for fiscal year 2024. Comprehensive Transformation Plan – Key Developments The following previously announced profitability initiatives are now contributing to improved financial performance: Our revised in-house manufacturing process of our key Diabetes HbA1c consumable. Reductions in headcount in late 2023 and Q1, 2024. Overall supply chain optimisation. Targeted price increases notified to customers in late 2023 and early 2024. We expect the above profitability initiatives to further contribute to improved financial performance improvements through 2024. In addition, we expect the launch of our improved diabetes column system, which is ongoing, to contribute to improved financial performance in 2024. In early 2024, our new management team announced further profitability initiatives focused on delivering improved financial performance and since then the Company has made significant progress in advancing these key initiatives: Consolidate & Offshore Manufacturing: We completed training of our identified offshore manufacturing partner's staff in the assembly of our rapid HIV tests. Significant progress in ceasing main manufacturing activities at our Kansas City manufacturing plant which currently serves our Haemoglobin business. We remain on track to have fully executed this change by the end of 2024. Optimise Supply Chain: We prioritised optimisation of our rapid HIV supply chain, with increased volumes from TrinScreen HIV creating opportunities to negotiate with supply partners, resulting in meaningful reductions in our cost of goods. Centralise & Offshore Corporate Services: We have substantially progressed the set-up of our centralised & offshored corporate services function. We have signed an implementation agreement with a third party outsourced partner. Biosensor Developments We continue to progress the development of our next generation Continuous Glucose Monitoring ("CGM") system in line with our previously communicated plan. We have now engaged a world leading physical & digital product design consultancy, based in London and California, to lead the design of this next generation solution. We are progressing technical optimisations of our glucose sensor wire. We have applied for ethical approval to begin a pre-pivotal clinical trial in June 2024. This pre-pivotal clinical trial will give us insights into the sensor optimisation pathway and we expect to receive ethical approval to commence the trial in the coming weeks. We also continue to focus on the exciting health & wellness analytical insight opportunities from our CGM's data capture capabilities and recently announced a strategic collaboration with medical artificial intelligence company PulseAI. Under this collaboration Trinity Biotech will provide a unique pool of multi-parameter CGM datasets from Waveform's existing biosensor database to PulseAI, which will be used to support the design and implementation of Trinity Biotech's AI-driven health & wellness analytics platform. PulseAI are experts in evidence-based medical AI and have extensive experience in scaling AI algorithm training using medical sensor datasets. PulseAI have worked in association with Mayo Clinic to train their machine learning algorithms using large-scale datasets captured across millions of patients. We have also strengthened our team with the appointment of Avinash Kale as Continuous Glucose Monitor Programme Director. We are very excited to welcome Avinash to Trinity Biotech and believe Avinash will be instrumental in advancing our mission of introducing intelligent wearable biosensors, including CGMs, into markets all around the globe. First Quarter Results (Unaudited)          Total revenues for Q1, 2024 were $14.7m compared to $14.8m in Q1, 2023, a decrease of 0.8% and which were broken down as follows:   2024 Quarter 1 2023 Quarter 1 Increase/ (decrease)   US$000 US$000 % Clinical laboratory 11,712 12,669 (7.6%) Point-of-care 2,992 2,160 38.5% Total 14,704 14,829 (0.8%) Our PoC portfolio generated revenues of $3.0m for Q1, 2024, compared to $2.2m in Q1, 2023, an increase of 38.5%. Sales of our HIV screening test, TrinScreen HIV were $1.2 million in the quarter as we shipped product to Africa following our initial shipments in December 2023. Substantial additional orders for TrinScreen HIV have been received post quarter-end, with our expected revenue for 2024 to be over $8 million. Revenues for our other PoC products declined by 17.2% compared to Q1, 2023 driven by irregular quarter on quarter ordering patterns that characterise the HIV testing market in Africa. Our clinical laboratory revenues were $11.7m in Q1, 2024, a decrease of $1.0m or 7.6% compared to $12.7m in Q1, 2023. Our Haemoglobin revenue was 6.4% higher than in the comparative quarter of 2023. This increase in Haemoglobin revenue was more than offset by revenue decreases, primarily driven by lower lab services and autoimmune manufacturing revenue, which were down $1.0m versus Q1, 2023. As previously reported, in early 2023 we ceased transplant testing activity at our Buffalo, New York laboratory, which drove the majority of this decline. In addition to these declines, there was a reduction of just over $0.4m in revenues from our COVID-19 VTM products. Gross profit for the quarter was $5.5m which was broadly consistent with Q1, 2023. Gross margin for Q1, 2024 was 37.6%, which was the same as the gross margin in Q1, 2023. As expected, we recorded improved margins in our haemoglobins division in Q1 2024 due to: the financial benefits resulting from our previously announced haemoglobins business initiatives, namely the optimisation of our instrument manufacturing supply chain and our revised in-house manufacturing process of our key diabetes HbA1c consumable, which we fully implemented by the end of Q1 2024, and a more favourable sales mix of higher margin haemoglobin consumables. The improved margin performance in haemoglobins this quarter was offset by the margin impact of the higher TrinScreen HIV revenues, which are currently achieving a lower-than-average gross margin. Higher TrinScreen revenues will continue to dilute our overall gross margin percentage in the remaining quarters of 2024 given its lower price point when compared to our UniGold HIV test, but we do expect TrinScreen HIV to contribute additional gross profit as 2024 progresses due to further automation of our manufacturing process, increased operational efficiency and the expected transfer of assembly to a lower cost of manufacturing location by the end of 2024. Additionally, over the coming quarters, we expect to realize further financial benefits of the previously announced cost saving initiatives in our haemoglobins, autoimmune and infectious diseases divisions. R&D Research and development expenses in Q1, 2024 were $1.1m, an increase of $0.2m compared to Q1 2023. We incurred $0.7m in capitalised expenditure relating to our biosensor development as we begun development activities post our acquisition of the Waveform assets in January 2024. Our overall spend in the quarter relating to our biosensor division was $1.3m. For the remainder of 2024 we expect to incur less than $2.0m a quarter relating to our biosensor development. SG&A Selling, general and administrative (SG&A) expenses were $7.5m in Q1, 2024, compared to $8.6m in Q1, 2023, a decrease of $1.1m in the quarter. Key drivers of this lower SG&A expense include: Lower recurring salary and contractor costs of $0.4m in Q1 2024 versus the comparative period, driven by headcount optimisation activities during Q3 and Q4 2023. Cost savings of approximately $0.6m due to the benefits of our other cost saving initiatives in the last twelve months. Our share-based payments accounting charge was $0.6m lower in Q1, 2024 compared to Q1, 2023, with the lower expense mainly due to the resignation of our former CEO in Q4, 2023. A favourable movement in foreign exchange retranslation gains and losses, which shifted from an FX loss of $0.1m in Q1, 2023, to an FX gain of $0.1m for Q1, 2024, largely related to the accounting driven requirement to mark-to-market Euro-denominated lease liabilities for right-of-use assets. These savings were offset by a quarter-on-quarter increase in operating expenses relating to our biosensor division of $0.3m and higher amortisation of $0.3m mainly due to the Waveform acquisition which occurred during Q1, 2024. Operating Loss Operating loss for the quarter was $3.0m compared to an operating loss of $3.9m in Q1, 2023, a decrease of $0.9m or 23%. The lower loss was attributable to lower indirect costs – predominantly as a result of cost savings initiatives, lower non-cash share-based payments charge and a foreign exchange gain on lease accounting as detailed above. Net Financial Expenses Net financial expenses in Q1, 2024 were $0.2m compared to $2.4m in Q1, 2023, a decrease of $2.2m. The reduction in net financial expense this quarter is a result of the renegotiation of the terms of our term loan ("Amended Term Loan") with our main lender Perceptive Advisors ("Perceptive") in January 2024. We obtained a 2.5% reduction in the base interest rate for the term loan from 11.25% to 8.75%. In accordance with IFRS accounting standards, the amendment of the term loan is treated as a loan modification, resulting in the recognition of a once-off non-cash modification gain of $3.6m in Q1, 2024. This gain was based on the difference between the existing carrying amount of the loan as at the modification date and the revised carrying amount. Additionally, the fair value movement of the derivative liability associated with warrants held by Perceptive resulted in a $0.8m expense. Partially offsetting this was a revaluation of a derivative financial asset which estimates the value to the Company of being able to repay the Amended Term Loan early and potentially refinance at lower interest rate. The movement in the derivative financial asset led to financial income of $0.1m in Q1, 2024. Offsetting the above was an increase in the Amended Term Loan interest expense of $0.4m. The increase in interest expense in Q1, 2024 compared to Q1, 2023 is driven by a higher outstanding loan balance, albeit at lower prevailing interest rates due to the renegotiation downwards of the interest rate on the Amended Term Loan. Other interest expenses remained broadly consistent with the prior quarter. The financial expense for the current and comparative period are summarized in the table below.   Q1, 2024 US$000 Q1, 2023 US$000 Amended Term Loan interest 2,560 2,119 Convertible note interest 282 265 Notional interest on lease liabilities for Right-of-use assets 147 167 Fair value movement on derivative balances 841