##### Table of Contents



SECURITIES AND EXCHANGE COMMISSION
 Washington D.C. 20549
 FORM 20-F
 o
    
    REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934
 OR
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended December 31, 2008
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 o
    
    SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 Date of event requiring this shell company report
 Commission file number: 0-22320
 Trinity Biotech plc
 
 Ireland
 IDA Business Park, Bray, Co. Wicklow, Ireland
  Kevin Tansley  Chief Financial Officer  Tel: +353 1276 9800  Fax: +353 1276 9888  IDA Business Park, Bray, Co. Wicklow, Ireland  (Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)
  Title of each class
    
    Name of each exchange on which registeredNone
    
    None
  American Depositary Shares (each representing 4 A Ordinary Shares, par value $0.0109)
 None
  82,017,581 Class A Ordinary Shares and 700,000 Class B Shares
  o þ
  o þ
  þ o
  Large accelerated filer o
    
    Accelerated filer þ
    
    Non-accelerated filer o
    
    Smaller reporting company o(Do not check if a smaller reporting company)
  U.S. GAAPo
    
    International Financial Reporting Standards as 
issued by the International Accounting Standards
Boardþ
    
    Othero
  o o
  o þ




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##### 



TABLE OF CONTENTS
 PagePART IItem 1 Identity of Directors, Senior Management and Advisors
    
    
    1Item 2 Offer statistics and Expected timetable
    
    
    1Item 3 Selected Consolidated Financial Data
    
    
    1Item 4 Information on the Company
    
    
    7Item 5 Operating and Financial Review and Prospects
    
    
    14Item 6 Directors and Senior Management
    
    
    37Item 7 Major Shareholders and Related Party Transactions
    
    
    42Item 8 Financial Information
    
    
    44Item 9 The Offer and Listing
    
    
    44Item 10 Memorandum and Articles of Association
    
    
    46Item 11 Qualitative and Quantitative Disclosures about Market Risk
    
    
    56Item 12 Description of Securities other than Equity Securities
    
    
    57PART IIItem 13 Defaults, Dividend Arrangements and Delinquencies
    
    
    57Item 14 Material Modification to the Rights of Security Holders and Use of Proceeds
    
    
    58Item 15 Control and Procedures
    
    
    58Item 16A Audit Committee Financial Expert
    
    
    59Item 16B Code of Ethics
    
    
    59Item 16C Principal Accounting Fees and Services
    
    
    59PART IIIItem 17 Consolidated Financial Statements
    
    
    60Item 18 Consolidated Financial Statements
    
    
    60Item 19 Exhibits
    
    
    134Exhibit 12.1Exhibit 12.2Exhibit 13.1Exhibit 13.2Exhibit 15.1




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##### Table of Contents




 
 Item 1 Identity of Directors, Senior Management and Advisers
  
 Item 2 Offer Statistics and Expected Timetable
  
 Item 3 Selected Consolidated Financial Data
   1




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CONSOLIDATED STATEMENT OF OPERATIONS DATA
 Year ended December, 312008
    
    
    2007
    
    
    2006
    
    
    2005
    
    
    2004Total
    
    
    Total
    
    
    Total
    
    
    Total
    
    
    TotalUS$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Revenues
    
    
    140,139
    
    
    
    143,617
    
    
    
    118,674
    
    
    
    98,560
    
    
    
    80,008Cost of sales
    
    
    (77,645
    )
    
    
    (75,643
    )
    
    
    (62,090
    )
    
    
    (51,378
    )
    
    
    (40,047
    )Cost of sales  restructuring expenses
    
    
    
    
    
    
    (953
    )
    
    
    
    
    
    
    
    
    
    
    Cost of sales  inventory write off / provision
    
    
    
    
    
    
    (11,772
    )
    
    
    (5,800
    )
    
    
    
    
    
    
    Total cost of sales
    
    
    (77,645
    )
    
    
    (88,368
    )
    
    
    (67,890
    )
    
    
    (51,378
    )
    
    
    (40,047
    )Gross profit
    
    
    62,494
    
    
    
    55,249
    
    
    
    50,784
    
    
    
    47,182
    
    
    
    39,961Other operating income
    
    
    1,173
    
    
    
    413
    
    
    
    275
    
    
    
    161
    
    
    
    302Research and development expenses
    
    
    (7,544
    )
    
    
    (6,802
    )
    
    
    (6,696
    )
    
    
    (6,070
    )
    
    
    (4,744
    )Research and development  restructuring
expenses
    
    
    
    
    
    
    (6,907
    )
    
    
    
    
    
    
    
    
    
    
    Total research and development expenses
    
    
    (7,544
    )
    
    
    (13,709
    )
    
    
    (6,696
    )
    
    
    (6,070
    )
    
    
    (4,744
    )Selling, general and administrative expenses
    
    
    (47,816
    )
    
    
    (51,010
    )
    
    
    (42,422
    )
    
    
    (34,651
    )
    
    
    (29,332
    )Selling, general and administrative 
impairment charges and restructuring expenses
    
    
    (87,882
    )
    
    
    (20,315
    )
    
    
    
    
    
    
    
    
    
    
    Total selling, general and administrative
expenses
    
    
    (135,698
    )
    
    
    (71,325
    )
    
    
    (42,422
    )
    
    
    (34,651
    )
    
    
    (29,332
    )Operating (loss)/ profit
    
    
    (79,575
    )
    
    
    (29,372
    )
    
    
    1,941
    
    
    
    6,622
    
    
    
    6,187Financial income
    
    
    65
    
    
    
    457
    
    
    
    1,164
    
    
    
    389
    
    
    
    302Financial expenses
    
    
    (2,160
    )
    
    
    (3,148
    )
    
    
    (2,653
    )
    
    
    (1,058
    )
    
    
    (824
    )Net financing costs
    
    
    (2,095
    )
    
    
    (2,691
    )
    
    
    (1,489
    )
    
    
    (669
    )
    
    
    522(Loss)/ profit before tax
    
    
    (81,670
    )
    
    
    (32,063
    )
    
    
    452
    
    
    
    5,953
    
    
    
    5,665Income tax (expense)/ credit
    
    
    3,892
    
    
    
    (3,309
    )
    
    
    2,824
    
    
    
    (673
    )
    
    
    49(Loss)/ profit for the year (all attributable
to equity holders)
    
    
    (77,778
    )
    
    
    (35,372
    )
    
    
    3,276
    
    
    
    5,280
    
    
    
    5,714Basic (loss)/ earnings per A ordinary share
(US Dollars)
    
    
    (0.96
    )
    
    
    (0.47
    )
    
    
    0.05
    
    
    
    0.09
    
    
    
    0.10Basic (loss)/ earnings per B ordinary share
(US Dollars)
    
    
    (1.91
    )
    
    
    (0.94
    )
    
    
    0.10
    
    
    
    0.18
    
    
    
    0.20Diluted (loss)/ earnings per A ordinary share
(US Dollars)
    
    
    (0.96
    )
    
    
    (0.47
    )
    
    
    0.05
    
    
    
    0.09
    
    
    
    0.09Diluted (loss)/ earnings per B ordinary share
(US Dollars)
    
    
    (1.91
    )
    
    
    (0.94
    )
    
    
    0.10
    
    
    
    0.18
    
    
    
    0.18Basic (loss)/ earnings per ADS (US Dollars)
    
    
    (3.82
    )
    
    
    (1.86
    )
    
    
    0.19
    
    
    
    0.36
    
    
    
    0.41Diluted (loss)/ earnings per ADS (US Dollars)
    
    
    (3.82
    )
    
    
    (1.86
    )
    
    
    0.19
    
    
    
    0.35
    
    
    
    0.37Weighted average number of shares used in
computing basic EPS
    
    
    81,394,075
    
    
    
    76,036,579
    
    
    
    70,693,753
    
    
    
    58,890,084
    
    
    
    55,132,024Weighted average number of shares used in
computing diluted EPS
    
    
    81,394,075
    
    
    
    76,036,579
    
    
    
    72,125,740
    
    
    
    67,032,382
    
    
    
    65,527,802
  2




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Consolidated Balance Sheet Data
 December
    
    
    December
    
    
    December
    
    
    December 31,
    
    
    December 31,31,2008
    
    
    31,2007
    
    
    31,2006
    
    
    2005
    
    
    2004US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Net current assets (current assets less current
liabilities)
    
    
    39,494
    
    
    
    36,298
    
    
    
    60,996
    
    
    
    44,964
    
    
    
    53,448Non current liabilities
    
    
    (27,897
    )
    
    
    (35,623
    )
    
    
    (45,928
    )
    
    
    (19,083
    )
    
    
    (16,636
    )Total assets
    
    
    129,509
    
    
    
    215,979
    
    
    
    249,131
    
    
    
    184,602
    
    
    
    156,040Capital stock
    
    
    1,070
    
    
    
    991
    
    
    
    978
    
    
    
    830
    
    
    
    776Shareholders equity
    
    
    65,905
    
    
    
    136,845
    
    
    
    167,262
    
    
    
    133,618
    
    
    
    118,894
  Risk Factors
  Trinity Biotechs operating results may be subject to fluctuations.
 
    
    Trinity Biotechs operating results may fluctuate as a result of many factors related to
its business, including the competitive conditions in the industry, major reorganisations of
the Groups activities, loss of significant customers, delays in the development of new
products and currency fluctuations, as described in more detail below, and general factors
such as the size and timing of orders, the prevalence of various diseases and general economic
conditions. In the event of lower operating profits, this could have a negative impact on cash
generated from operations and also negatively impact shareholder value.
 A need for capital might arise in the future if Trinity Biotechs capital requirements increase or
revenues decrease.
 
    
    Up to now Trinity Biotech has funded its operations through the sale of its shares and
securities convertible into shares, cashflows from operations and bank borrowings. Trinity
Biotech expects that the proceeds of equity financings, bank borrowings, lease financing,
current working capital and sales revenues will fund its existing operations and payment
obligations. However, if our capital requirements are greater than expected, or if our
revenues do not generate sufficient cashflows to fund our operations, we may need to find
additional financing which may not be available on attractive terms or at all. Any future
financing could have an adverse effect on our current shareholders or the price of our shares
in general.
 Trinity Biotechs acquisition strategy may be less successful than expected, and therefore, growth
may be limited.
 
    
    Trinity Biotech has historically grown organically and through the acquisition of, and
investment in, other companies, product lines and technologies. There can be no guarantees
that recent or future acquisitions can be successfully assimilated or that projected growth in
revenues or synergies in operating costs can be achieved. Our ability to integrate future
acquisitions may also be adversely affected by inexperience in dealing with new technologies,
and changes in regulatory or competitive environments. Additionally, even during a successful
integration, the investment of managements time and resources in the new enterprise may be
detrimental to the consolidation and growth of our existing business.
  3




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The diagnostics industry is highly competitive, and Trinity Biotechs research and development
could be rendered obsolete by technological advances of competitors.
 
    
    Trinity Biotechs principal business is the supply of medical diagnostic test kits and
related diagnostic instrumentation. The diagnostics industry is extremely competitive.
Trinity Biotech is competing directly with companies which have greater capital resources and
larger marketing and business organisations than Trinity Biotech. Trinity Biotechs ability to
grow revenue and earnings may be adversely impacted by competitive product and pricing
pressures and by its inability to gain or retain market share as a result of the action of
competitors.
 ® ® ®
 Trinity Biotech is highly dependent on suitable distributors worldwide.
 
    
    Trinity Biotech currently distributes its product portfolio through distributors in
approximately 80 countries worldwide. Our continuing economic success and financial security
is dependent on our ability to secure effective channels of distribution on favourable trading
terms with suitable distributors.
 Trinity Biotechs business could be adversely affected by changing market conditions resulting in
the reduction of the number of institutional customers.
 
    
    The diagnostics industry is in transition with a number of changes that affect the market
for diagnostic test products. Changes in the healthcare industry delivery system have resulted
in major consolidation among reference laboratories and in the formation of multi-hospital
alliances, reducing the number of institutional customers for diagnostic test products. There
can be no assurance that we will be able to enter into and/or sustain contractual or other
marketing or distribution arrangements on a satisfactory commercial basis with these
institutional customers.
 Trinity Biotechs long-term success depends on its ability to develop new products subject to
stringent regulatory control. Even if new products are successfully developed, Trinity Biotechs
proprietary know-how, manufacturing techniques and trade secrets may be copied by competitors.
Furthermore, Trinity Biotechs patents have a limited life time and are thereafter subject to
competition with generic products. Also, competitors might claim an exclusive patent for products
Trinity Biotech plans to develop.
 
    
    We are committed to significant expenditure on research and development (R&D). However,
there is no certainty that this investment in research and development will yield technically
feasible or commercially viable products. Our organic growth and long-term success is
dependent on our ability to develop and market new products but this work is subject to very
stringent regulatory control and very significant costs in research, development and
marketing. Failure to introduce new products could significantly slow our growth and
adversely affect our market share.
 
    
    Even when products are successfully developed and marketed, Trinity Biotechs ownership of
the technology behind these products has a finite life. In general, generic competition,
which can arise through replication of the Trinity Biotechs proprietary know-how,
manufacturing techniques and trade secrets or after the expiration of a patent, can have a
detrimental effect on a products revenue, profitability and market share. There can be no
guarantee that the net income and financial position of Trinity Biotech will not be adversely
affected by competition from generic products. Conversely, on occasion, certain companies have
claimed exclusive patent, copyright and other intellectual property rights to technologies in
the diagnostics industry. If these technologies relate to Trinity Biotechs planned products,
Trinity Biotech would be obliged to seek licences to use this technology and, in the event of
being unable to obtain such licences or it being obtainable on grounds that would
be materially disadvantageous to Trinity Biotech, we would be precluded from marketing such
products, which could adversely impact our revenues, sales and financial position.
  4




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Trinity Biotechs patent applications could be rejected or the existing patents could be
challenged; our technologies could be subject to patent infringement claims; and trade secrets and
confidential know-how could be obtained by competitors.
 
    
    We can provide no assurance that the patents Trinity Biotech may apply for will be
obtained or that existing patents will not be challenged. The patents owned by Trinity
Biotech and its subsidiaries may be challenged by third parties through litigation and
could adversely affect the value of our patents. We can provide no assurance that our
patents will continue to be commercially valuable.
 
    
    Trinity Biotech currently owns 15 US patents with remaining patent lives varying from
less than one year to 14 years. In addition to these US patents, Trinity Biotech owns a
total of 7 additional non-US patents with expiration dates varying between the years 2009
and 2023.
 
    
    Also, our technologies could be subject to claims of infringement of patents or
proprietary technology owned by others. The cost of enforcing our patent and technology
rights against infringers or defending our patents and technologies against infringement
charges by others may be high and could adversely affect our business.
 
    
    Trade secrets and confidential know-how are important to our scientific and commercial
success. Although we seek to protect our proprietary information through confidentiality
agreements and other contracts, we can provide no assurance that others will not
independently develop the same or similar information or gain access to our proprietary
information.
 Trinity Biotechs business is heavily regulated and non-compliance with applicable regulations
could reduce revenues and profitability.
 
    
    Our manufacturing and marketing of diagnostic test kits are subject to government
regulation in the United States of America by the Food and Drug Administration (FDA),
and by comparable regulatory authorities in other jurisdictions. The approval process for
our products, while variable across countries, is generally lengthy, time consuming,
detailed and expensive. Our continued success is dependent on our ability to develop and
market new products, some of which are currently awaiting approval from these regulatory
authorities. There is no certainty that such approval will be granted or, even once
granted, will not be revoked during the continuing review and monitoring process.
 
    
    We are required to comply with extensive post market regulatory requirements.
Non-compliance with applicable regulatory requirements of the FDA or comparable foreign
regulatory bodies can result in enforcement action which may include recalling products,
ceasing product marketing, paying significant fines and penalties, and similar actions
that could limit product sales, delay product shipment, and adversely affect
profitability.
 Trinity Biotechs success is dependent on certain key management personnel.
 
    
    Trinity Biotechs success is dependent on certain key management personnel. Our key
employees at December 31, 2008 were Ronan OCaoimh, our CEO and Chairman, Rory Nealon, our
COO and Kevin Tansley, our CFO and Secretary. Competition for qualified employees among
biotechnology companies is intense, and the loss of such personnel or the inability to
attract and retain the additional highly skilled employees required for the expansion of
our activities, could adversely affect our business. In the USA, the UK, France and Germany
we have been able to attract and retain qualified personnel. In Ireland, we have
experienced some difficulties in attracting and retaining staff due to competition from
other employers in our industry.
 Trinity Biotech is dependent on its suppliers for the primary raw materials required for its test
kits.
 
    
    The primary raw materials required for Trinity Biotechs test kits consist of antibodies,
antigens or other reagents, glass fibre and packaging materials which are acquired from third
parties. Although Trinity Biotech does not expect to be dependent upon any one source for
these raw materials, alternative sources of antibodies with the characteristics and quality
desired by Trinity Biotech may not be available. Such unavailability could affect the quality
of our products and our ability to meet orders for specific products.
  5




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Trinity Biotech may be subject to liability resulting from its products or services.
 
    
    Trinity Biotech may be subject to claims for personal injuries or other damages
resulting from its products or services. Trinity Biotech has global product liability
insurance in place for its manufacturing subsidiaries up to a maximum of 6,500,000
(US$9,555,000) for any one accident, limited to a maximum of 6,500,000 (US$9,555,000) in
any one year period of insurance. A deductible of US$25,000 is applicable to each insurance
event that may arise. There can be no assurance that our product liability insurance is
sufficient to protect us against liability that could have a material adverse effect on our
business.
 Currency fluctuations may adversely affect our earnings and assets.
 
    
    Trinity Biotech records its transactions in US Dollars, euro and Swedish Kroner and
prepares its financial statements in US Dollars. A substantial portion of our expenses are
denominated in euro. However, Trinity Biotechs revenues are primarily denominated in US
Dollars. As a result, the Group is affected by fluctuations in currency exchange rates,
especially the exchange rate between the US dollar and the euro, which may adversely affect
our earnings and assets. The percentage of 2008 consolidated revenue denominated in US Dollars
was approximately 66%. Of the remaining 34% revenue, 26% relates to revenue denominated in
Euro and 8% relates to sterling, yen and Swedish Kroner denominated revenues. Thus, a 10%
decrease in the value of the euro would have approximately a 3% adverse impact on consolidated
revenues.
 
    
    As part of the process of mitigating foreign exchange risk, the principal exchange risk
identified by Trinity Biotech is with respect to fluctuations in the euro. This is
attributable to the level of euro denominated expenses exceeding the level of euro denominated
revenues thus creating a euro deficit. Trinity Biotech continuously monitors its exposure to
foreign currency movements and based on expectations on future exchange rate exposure
implements a hedging policy which may include covering a portion of this exposure through the
use of forward contracts. In the medium term, our objective is to increase the level of
non-US Dollar denominated revenue, thus creating a natural hedge of the non-US Dollar
expenditure.
 The conversion of our outstanding employee share options and warrants would dilute the ownership
interest of existing shareholders.
 
    
    The warrants issued in 2004 and 2008 and the total share options exercisable at December
2008, as described in Item 18, note 19 to the consolidated financial statements, are
convertible into American Depository Shares (ADSs), 1 ADS representing 4 Class A Ordinary
Shares. The exercise of the share options exercisable and of the warrants will likely occur
only when the conversion price is below the trading price of our ADSs and will dilute the
ownership interests of existing shareholders. For instance, should the options and warrant
holders of the 8,670,013 A Ordinary shares (2,167,503 ADSs) exercisable at December 31, 2008
be exercised, Trinity Biotech would have to issue 8,670,013 additional A ordinary shares
(2,167,503 ADSs). On the basis of 82,017,581 A ordinary shares outstanding at December 31,
2008, this would effectively dilute the ownership interest of the existing shareholders by
approximately 10%.
 It could be difficult for US holders of ADSs to enforce any securities laws claims against Trinity
Biotech, its officers or directors in Irish Courts.
 
    
    At present, no treaty exists between the United States and Ireland for the reciprocal
enforcement of foreign judgements. The laws of Ireland do however, as a general rule,
provide that the judgements of the courts of the United States have in Ireland the same
validity as if rendered by Irish Courts. Certain important requirements must be satisfied
before the Irish Courts will recognise the United States judgement. The originating court
must have been a court of competent jurisdiction, the judgement may not be recognised if it
is based on public policy, was obtained by fraud or its recognition would be contrary to
Irish public policy. Any judgement obtained in contravention of the rules of natural
justice will not be enforced in Ireland.
  6




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Item 4 Information on the Company
 History and Development of the Company
     Acquisition of Haemostasis business of bioMerieux Inc
  Acquisition of the distribution business of Laboratoires Nephrotek SARL
  Acquisition of the immuno-technology business of Cortex Biochem Inc
  Acquisition of certain components of the distribution business of Sterilab Services UK
   7




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Principal Markets
   Principal Products
  Clinical LaboratoryInfectious
    
    ClinicalHaemostasis
    
    Diseases
    
    Chemistry
    
    Point of CareTrini
    
    Bartels®
    
    Primus
    
    UniGoldBiopool®
    
    CAPTIA
    
    EZ
    
    CapillusAmax
    
    MarDx®
    
    
    
    Recombigen®Destiny
    
    MicroTrakMarBlot®
  Clinical Laboratory
  Haemostasis
   Infectious Diseases
    8




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1.
    
    The increased Trinity Biotech instrumentation offering/portfolio through collaboration
with Adaltis and Dynex and implementation of a system sell (i.e. combining instruments and
reagents) strategy;2.
    
    Focus on key accounts in affiliate markets;3.
    
    Expansion of product portfolio to meet market demands; and4.
    
    Increase in our geographical spread with new partnerships in major markets in
Asia-Pacific.
 Clinical Chemistry
   Point of Care (POC)
    Sales and Marketing
   9




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Manufacturing and Raw Materials
  Competition
  Patents and Licences
 Patents
   Licences
       10




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Government Regulation
   FDA Regulation
  Access to US Market.
 5 10(k) Clearance Pathway
 PMA Approval Pathway
  BLA approval pathway.
 Clinical Studies
  11




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Post-market Regulation
     CLIA classification
    Regulation outside the United States
   12




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Organisational Structure
   Property, Plant and Equipment
  
    
      13




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
  Capital expenditures and divestitures
  
 Item 5 Operating and Financial Review and Prospects
 Operating Results
   Overview
  Factors affecting our results
     14




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Critical Accounting Policies and Estimates
    Research and development expenditure
      15




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Impairment of intangible assets and goodwill
  
    
    Significant underperformance relative to expected, historical or projected future operating results;
 
    
    Significant changes in the manner of our use of the acquired assets or the strategy for our overall
business;
 
    
    Obsolescence of products;
 
    
    Significant decline in our stock price for a sustained period; and
 
    
    Our market capitalisation relative to net book value.
      
    
    An increase in impairment of US$5.3 million in the event of a 10% decrease in the growth
in revenues.
    
    A decrease in impairment of US$5.0 million in the event of a 10% increase in the growth
in revenues.
  
    
    An increase in impairment of US$4.8 million in the event of a 10% increase in the
discount rate.
    
    A decrease in impairment of US$4.7 million in the event of a 10% decrease in the
discount rate
  16




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Allowance for slow-moving and obsolete inventory
   Allowance for impairment of receivables
  Accounting for income taxes
    17




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Impact of Recently Issued Accounting Pronouncements
 ,
 Results of Operations
 Year ended December 31, 2008 compared to the year ended December 31, 2007
 The following compares our results in the year ended December 31, 2008 to those of the year ended
December 31, 2007 under IFRS. Our analysis is divided as follows:
 1.
    
    Overview2.
    
    Revenues3.
    
    Operating Expenses4.
    
    Loss for the year
 1. Overview
     18




---



##### Table of Contents



Year ended December 31, 2008Impairment
    
    
    Restructuring
    
    
    TotalUS$000
    
    
    US$000
    
    
    US$000Selling, general & administration expensesImpairment of property, plant and equipment
(Item 18, note 11)
    
    
    13,095
    
    
    
    
    
    
    
    13,095Impairment of goodwill and other intangible
assets (Item 18, note 12)
    
    
    71,684
    
    
    
    
    
    
    
    71,684Impairment of prepayments (Item 18, note 16)
    
    
    1,014
    
    
    
    
    
    
    
    1,014Employee termination payments
    
    
    
    
    
    
    589
    
    
    
    589Directors compensation for loss of office
and share option expense
    
    
    
    
    
    
    1,465
    
    
    
    1,465Other restructuring expenses
    
    
    
    
    
    
    35
    
    
    
    35Total impairment loss and restructuring expenses
before tax
    
    
    85,793
    
    
    
    2,089
    
    
    
    87,882Income tax impact of impairment loss and
restructuring expenses (Item 18, note 9)
    
    
    (4,536
    )
    
    
    (215
    )
    
    
    (4,751
    )Total impairment loss and restructuring expenses
after tax
    
    
    81,257
    
    
    
    1,874
    
    
    
    83,131
        19




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##### Table of Contents



2. Revenues
    Revenues by Product Line
  Year ended December 31,2008
    
    
    2007US$000
    
    
    US$000
    
    
    % ChangeRevenuesClinical Laboratory
    
    
    121,143
    
    
    
    119,113
    
    
    
    2
    %Point of Care
    
    
    18,996
    
    
    
    24,504
    
    
    
    (23
    %)Total
    
    
    140,139
    
    
    
    143,617
    
    
    
    (2
    %)
 Clinical Laboratory
      20




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##### Table of Contents



Point of Care
  Revenues by Geographical Region
  Year ended December 31,2008
    
    
    2007US$000
    
    
    US$000
    
    
    % ChangeRevenuesAmericas
    
    
    69,915
    
    
    
    68,481
    
    
    
    2
    %Europe
    
    
    43,481
    
    
    
    43,631
    
    
    
    0
    %Asia/Africa
    
    
    26,743
    
    
    
    31,505
    
    
    
    (15
    %)Total
    
    
    140,139
    
    
    
    143,617
    
    
    
    (2
    %)
      21




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##### Table of Contents



3. Operating Expenses
  Year ended December 31,2008
    
    
    2007US$000
    
    
    US$000
    
    
    % ChangeRevenues
    
    
    140,139
    
    
    
    143,617
    
    
    
    (2
    %)Cost of sales
    
    
    (77,645
    )
    
    
    (75,643
    )
    
    
    3
    %Cost of sales  restructuring expenses
    
    
    
    
    
    
    (953
    )
    
    
    (100
    %)Cost of sales  inventory write off/ provision
    
    
    
    
    
    
    (11,772
    )
    
    
    (100
    %)Gross profit
    
    
    62,494
    
    
    
    55,249
    
    
    
    13
    %Other operating income
    
    
    1,173
    
    
    
    413
    
    
    
    184
    %Research & development
    
    
    (7,544
    )
    
    
    (6,802
    )
    
    
    11
    %Research & development  restructuring expenses
    
    
    
    
    
    
    (6,907
    )
    
    
    (100
    %)SG&A expenses
    
    
    (47,816
    )
    
    
    (51,010
    )
    
    
    (6
    %)SG&A expenses  impairment charges and restructuring expenses
    
    
    (87,882
    )
    
    
    (20,315
    )
    
    
    333
    %Operating (loss)
    
    
    (79,575
    )
    
    
    (29,372
    )
    
    
    171
    %
 Cost of sales
    Gross margin
   22




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##### Table of Contents



Research and development expenses
   Selling, General & Administrative expenses (SG&A)
  Year ended December 31,
    
    
    Increase/2008
    
    
    2007
    
    
    (decrease)US$000
    
    
    US$000
    
    
    US$000
    
    
    % ChangeSG&A (excl.
share-based payments
and amortisation)
    
    
    43,269
    
    
    
    46,368
    
    
    
    (3,099
    )
    
    
    (7
    %)SG&A   impairment
charges and
restructuring
expenses
    
    
    87,882
    
    
    
    20,315
    
    
    
    67,567
    
    
    
    333
    %Share-based payments
    
    
    931
    
    
    
    1,224
    
    
    
    (293
    )
    
    
    (24
    %)Amortisation
    
    
    3,616
    
    
    
    3,418
    
    
    
    198
    
    
    
    6
    %Total
    
    
    135,698
    
    
    
    71,325
    
    
    
    64,373
    
    
    
    90
    %
 Selling General & Administrative Expenditure (excluding share-based payments and amortisation)
   
    
    a reorganisation of our sales force mainly in the US was announced in December 2007. As a
result, a headcount reduction was implemented which delivered payroll cost savings of about
US$1,000,000 in 2008.
Other headcount reductions in management and administrative functions reduced SG&A payroll
costs by a further US$900,000.
    
    through cost control the Group succeeded in reducing its selling overheads and
administrative expenses by about US$2,000,000 in 2008. Further cost cutting measures were
announced by the Board in December 2008 but due to timing these measures did not have a
significant impact on the 2008 figures. The full benefit of these cost cutting measures,
which mainly comprise further headcount reductions in sales, marketing and administration,
will be seen in 2009.
    
    a reduction in professional fees including audit fees of approximately US$700,000.
    
    the closure of the plant in Umea, Sweden during 2008 reduced administrative expenses by
about US$180,000.
    
    the US dollar strengthened versus Sterling in the second half of 2008 and this had the
effect of reducing the reported SG&A costs for our UK selling entity by just over $100,000.
  23




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##### Table of Contents



SG&A impairment charges and restructuring expenses
    Share-based payments
    Amortisation
   24




---



##### Table of Contents



4. Loss for the year
  Year ended December 31,2008
    
    
    2007US$000
    
    
    US$000
    
    
    % ChangeOperating (loss)
    
    
    (79,575
    )
    
    
    (29,372
    )
    
    
    171
    %Net financing costs
    
    
    (2,095
    )
    
    
    (2,691
    )
    
    
    (22
    %)(Loss) before tax
    
    
    (81,670
    )
    
    
    (32,063
    )
    
    
    155
    %Income tax credit/(expense)
    
    
    3,892
    
    
    
    (3,309
    )
    
    
    (218
    %)(Loss) of the year
    
    
    (77,778
    )
    
    
    (35,372
    )
    
    
    120
    %
 Net Financing Costs
  Taxation
  (Loss) for the year
   25




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##### Table of Contents



Year ended December 31, 2007 compared to the year ended December 31, 2006
 The following compares our results in the year ended December 31, 2007 to those of the year ended
December 31, 2006 under IFRS. Our analysis is divided as follows:
 1.
    
    Overview2.
    
    Revenues3.
    
    Operating Expenses4.
    
    Retained Profit
 1. Overview
  
    
    the rationalisation of the Haemostasis and Infectious Diseases reagent and
instrumentation product lines resulting in an inventory write off of US$11,772,000;
    
    the closure of the Groups operation in Sweden, resulting in an inventory write off of
US$147,000 (included in the total inventory write off in 2007 of US$11,772,000), a write
down of property, plant & equipment of US$42,000, termination payments of US$332,000 and
accrued lease obligations of US$116,000;
    
    the streamlining of the Groups development activities which resulted in a write off
of capitalised development and license costs of US$6,667,000 and,
    
    the reorganisation of the US sales force coupled with a redundancy programme to reduce
headcount across the Group resulting in additional termination payments of US$1,703,000
(exclusive of termination payments made as part of the closure of the Swedish
manufacturing operation of US$332,000). Total termination payments for the year amounted
to US$2,035,000 of which US$2,016,000 has been accrued at December 31, 2007.
 Impairment of Assets
  Restructuring
    
    
    Impairment
    
    
    TotalUS$000
    
    
    US$000
    
    
    US$000Cost of salesInventory provision
    
    
    11,772
    
    
    
    
    
    
    
    11,772Termination payments
    
    
    953
    
    
    
    
    
    
    
    95312,725
    
    
    
    
    
    
    
    12,725Research & developmentWrite-off of capitalised development and license costs
    
    
    6,667
    
    
    
    
    
    
    
    6,667Termination payments
    
    
    240
    
    
    
    
    
    
    
    2406,907
    
    
    
    
    
    
    
    6,907Selling, general & administration expensesImpairment of goodwill
    
    
    
    
    
    
    19,156
    
    
    
    19,156Termination payments
    
    
    842
    
    
    
    
    
    
    
    842Lease obligation provision
    
    
    116
    
    
    
    
    
    
    
    116Other
    
    
    201
    
    
    
    
    
    
    
    2011,159
    
    
    
    19,156
    
    
    
    20,315Total restructuring expenses and goodwill impairment before tax
    
    
    20,791
    
    
    
    19,156
    
    
    
    39,947Income tax impact of restructuring expenses and
goodwill impairment
    
    
    (1,584
    )
    
    
    
    
    
    
    (1,584
    )Total restructuring expenses and goodwill impairment after tax
    
    
    19,207
    
    
    
    19,156
    
    
    
    38,363
  26




---



##### Table of Contents



2. Revenues
     27




---



##### Table of Contents



Revenues by Product Line
  Year ended December 31,2007
    
    
    2006US$000
    
    
    US$000
    
    
    % ChangeRevenuesInfectious diseases
    
    
    41,293
    
    
    
    42,051
    
    
    
    (2
    %)Haemostasis
    
    
    60,759
    
    
    
    46,476
    
    
    
    31
    %Clinical Chemistry
    
    
    17,061
    
    
    
    14,868
    
    
    
    15
    %Point of Care
    
    
    24,504
    
    
    
    15,279
    
    
    
    60
    %Total
    
    
    143,617
    
    
    
    118,674
    
    
    
    21
    %
  Infectious Diseases Revenues
  Haemostasis Revenues
  Clinical Chemistry Revenues
  Point of Care
  Revenues by Geographical Region
  Year ended December 31,2007
    
    
    2006US$000
    
    
    US$000
    
    
    % ChangeRevenuesAmericas
    
    
    68,481
    
    
    
    60,748
    
    
    
    13
    %Europe
    
    
    43,631
    
    
    
    34,452
    
    
    
    27
    %Asia/Africa
    
    
    31,505
    
    
    
    23,474
    
    
    
    34
    %Total
    
    
    143,617
    
    
    
    118,674
    
    
    
    21
    %
  
    
    An increase in haemostasis sales including the full year impact of bioMerieux
haemostasis products which was acquired in June 2006;
    
    the growth in the sales of Trinitys Unigold rapid HIV test.
  28




---



##### Table of Contents



3. Operating Expenses
  Year ended December 31,2007
    
    
    2006US$000
    
    
    US$000
    
    
    % ChangeRevenues
    
    
    143,617
    
    
    
    118,674
    
    
    
    21
    %Cost of sales
    
    
    (75,643
    )
    
    
    (62,090
    )
    
    
    22
    %Cost of sales  restructuring expenses
    
    
    (953
    )
    
    
    
    
    
    
    100
    %Cost of sales  inventory write off/ provision
    
    
    (11,772
    )
    
    
    (5,800
    )
    
    
    103
    %Gross profit
    
    
    55,249
    
    
    
    50,784
    
    
    
    9
    %Other operating income
    
    
    413
    
    
    
    275
    
    
    
    50
    %Research & development
    
    
    (6,802
    )
    
    
    (6,696
    )
    
    
    2
    %Research & development  restructuring expenses
    
    
    (6,907
    )
    
    
    
    
    
    
    100
    %SG&A expenses
    
    
    (51,010
    )
    
    
    (42,422
    )
    
    
    20
    %SG&A expenses  restructuring expenses
    
    
    (20,315
    )
    
    
    
    
    
    
    100
    %Operating (loss)/ profit
    
    
    (29,372
    )
    
    
    1,941
    
    
    
    (1613
    %)
 Cost of sales
     29




---



##### Table of Contents



Gross margin
  Research and development expenses
  Selling, General & Administrative expenses (SG&A)
  Year ended December 31,
    
    
    Increase/2007
    
    
    2006
    
    
    (decrease)US$000
    
    
    US$000
    
    
    US$000
    
    
    % ChangeSG&A (excl.
share-based payments
and amortisation)
    
    
    46,368
    
    
    
    38,719
    
    
    
    7,649
    
    
    
    20
    %SG&A restructuring
expenses and
goodwill impairment
    
    
    20,315
    
    
    
    
    
    
    
    20,315
    
    
    
    100
    %Share-based payments
    
    
    1,224
    
    
    
    1,016
    
    
    
    208
    
    
    
    20
    %Amortisation
    
    
    3,418
    
    
    
    2,687
    
    
    
    731
    
    
    
    27
    %Total
    
    
    71,325
    
    
    
    42,422
    
    
    
    28,903
    
    
    
    68
    %
 Selling General & Administrative Expenditure (excluding share-based payments and amortisation)
   
    
    Increased SG&A costs in the Head Office/Irish operations of US$4,327,000. This is
mainly due to a combination of strengthening of the Groups marketing and central
administration functions in conjunction with increased professional fees associated with
the implementation of Sarbanes Oxley;
    
    An increase of US$2,057,000 in the Groups European operations (excluding Ireland). Of
this increase, US$1,465,000 related to the full year impact of the direct sales operation
in France acquired in 2006. The remaining increase of US$592,000 arose principally in the
UK mainly due to the increase in employee numbers and related costs associated with the
expansion of this entity following the acquisition of the haemostasis business of
bioMerieux in 2006;
    
    Increased SG&A costs of US$1,265,000 in the USA. This is primarily due to the full year
impact of the increased personnel and related costs following the acquisition of the
haemostasis business of bioMerieux in June 2006.
  30




---



##### Table of Contents



SG&A restructuring expenses and goodwill impairment
  Share-based payments
   Amortisation
  4 ( Loss)/ profit for the year
  Year ended December 31,2007
    
    
    2006US$000
    
    
    US$000
    
    
    % ChangeOperating (loss)/ profit
    
    
    (29,372
    )
    
    
    1,941
    
    
    
    (1613
    %)Net financing costs
    
    
    (2,691
    )
    
    
    (1,489
    )
    
    
    81
    %(Loss)/ profit before tax
    
    
    (32,063
    )
    
    
    452
    
    
    
    (7194
    %)Income tax (expense)/ credit
    
    
    (3,309
    )
    
    
    2,824
    
    
    
    (217
    %)(Loss)/ profit of the year
    
    
    (35,372
    )
    
    
    3,276
    
    
    
    (1180
    %)
 Net Financing Costs
   31




---



##### Table of Contents



Taxation
  (Loss)/ profit for the year
  Liquidity and Capital Resources
 Financing
     Working capital
   
    
    The ability of the Group to continue to generate revenue growth from its existing
product lines;
 
    
    The ability of the Group to generate revenues from new products following the successful
completion of its development projects;
 
    
    The extent to which capital expenditure is incurred on additional property plant and
equipment;
 
    
    The level of investment required to undertake both new and existing development
projects;
 
    
    Successful working capital management in the context of a growing group.
   32




---



##### Table of Contents



Cash management
     
    
    An increase in accounts receivable by US$4,131,000 due to an increase in debtors days in
the year ;
 
    
    A decrease in trade and other payables by US$676,000 due mainly to the payment of
deferred consideration during the year;
 
    
    A decrease in inventory by US$2,062,000 due to a Group wide emphasis on inventory
management.
   
    
    Deferred consideration of US$2,802,000 was paid to bioMerieux during 2008;
 
    
    Payments to acquire intangible assets of US$8,981,000 (2007: US$7,851,000), which
principally related to development expenditure capitalised as part of the Groups on-going
product development activities;
 
    
    Acquisition of property, plant and equipment of US$3,713,000 (2007: US$8,262,000)
incurred as part of the Groups investment programme for its manufacturing and distribution
activities;
 
    
    Proceeds from the disposal of property, plant and equipment of US$808,000 (2007:
US$84,000) mainly relating to the Groups disposal of assets in the Swedish entity during
2008.
   33




---



##### Table of Contents



Contractual obligations
  Payments due by Periodless than 1
    
    
    
    
    
    
    
    
    
    
    more thanTotal
    
    
    year
    
    
    1-3 Years
    
    
    3-5 Years
    
    
    5 yearsContractual Obligations
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Bank loans
    
    
    36,291
    
    
    
    13,079
    
    
    
    13,493
    
    
    
    9,719
    
    
    
    Capital (finance) lease obligations
    
    
    1,748
    
    
    
    514
    
    
    
    950
    
    
    
    284
    
    
    
    Operating lease obligations
    
    
    57,690
    
    
    
    4,438
    
    
    
    7,463
    
    
    
    6,194
    
    
    
    39,595Total
    
    
    95,729
    
    
    
    18,031
    
    
    
    21,906
    
    
    
    16,197
    
    
    
    39,595
  Impact of Currency Fluctuation
   Off-Balance Sheet Arrangements
  Leases with Related Parties
   34




---



##### Table of Contents



Research & Development (R&D) carried out by third parties
  Research and Products under Development
 History
  Centres of Excellence
   Microtitre Plate Development Group
 Enhancement of HSV 2 of microtitre plate assay for the detection of HSV2 IgG
  HIV Incidence Assay
  Western Blot Development Group
  US Lyme Western Blot
  Automated Blotting Instrument and Blot Scanner
   35




---



##### Table of Contents



Clinical Chemistry
 TriStat POC
  Haemoglobin assay development
  Medium throughput HPLC for Haemoglobin testing
  Haemostasis Development Group
 Destiny Max Development Project
  Trend Information
   36




---



##### Table of Contents



Item 6 Directors and Senior Management
 Directors
 Name
    
    Age
    
    TitleRonan OCaoimh
    
    
    53
    
    
    Chief Executive OfficerRory Nealon
    
    
    41
    
    
    Director, Chief Operations OfficerJim Walsh, PhD
    
    
    50
    
    
    Non Executive DirectorDenis R. Burger, PhD
    
    
    65
    
    
    Non Executive DirectorPeter Coyne
    
    
    49
    
    
    Non Executive DirectorClint Severson
    
    
    60
    
    
    Non Executive DirectorJames D. Merselis
    
    
    55
    
    
    Non Executive DirectorExecutive OfficerKevin Tansley
    
    
    38
    
    
    Chief Financial Officer & Company Secretary
 Board of Directors & Executive Officers
 Ronan OCaoimh, Chairman and Chief Executive Officer,
 Rory Nealon, Chief Operations Officer
 Jim Walsh, PhD, Non-executive director
  37




---



##### Table of Contents



Denis R. Burger, PhD, Non-executive director
 Peter Coyne, Non-executive director
 Clint Severson, Non-executive director
 James D. Merselis, Non-executive director,
 Kevin Tansley, Chief Financial Officer
 Compensation of Directors and Officers
   38




---



##### Table of Contents



DefinedSalary/
    
    
    contribution
    
    
    Compensation
    
    
    Total
    
    
    TotalBenefits
    
    
    pension
    
    
    for loss of
    
    
    2008
    
    
    2007Director
    
    US$000
    
    
    US$000
    
    
    office
    
    
    US$000
    
    
    US$000Ronan OCaoimh
    
    
    495
    
    
    
    98
    
    
    
    
    
    
    
    593
    
    
    
    927Brendan Farrell
    
    
    483
    
    
    
    75
    
    
    
    1,283
    
    
    
    1,841
    
    
    
    681Rory Nealon
    
    
    439
    
    
    
    68
    
    
    
    
    
    
    
    507
    
    
    
    509Jim Walsh
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2701,417
    
    
    
    241
    
    
    
    1,283
    
    
    
    2,941
    
    
    
    2,387
 Total
    
    
    TotalFees
    
    
    Other
    
    
    2008
    
    
    2007Non-executive director
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Denis R. Burger
    
    
    68
    
    
    
    
    
    
    
    68
    
    
    
    65Peter Coyne
    
    
    68
    
    
    
    
    
    
    
    68
    
    
    
    65James Merselis
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Clint Severson
    
    
    5
    
    
    
    
    
    
    
    5
    
    
    
    Jim Walsh
    
    
    59
    
    
    
    44
    
    
    
    103
    
    
    
    200
    
    
    
    44
    
    
    
    244
    
    
    
    130
 DefinedChief Financial
    
    Salary/
    
    
    Performance
    
    
    contribution
    
    
    Total
    
    
    TotalOfficer & Company
    
    Benefits
    
    
    related bonus
    
    
    pension
    
    
    2008
    
    
    2007Secretary
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Kevin Tansley
    
    
    329
    
    
    
    43
    
    
    
    36
    
    
    
    408
    
    
    
    55329
    
    
    
    43
    
    
    
    36
    
    
    
    408
    
    
    
    55
     Board Practices
   39




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##### Table of Contents



Employees
   Stock Option Plan
    Number of A
    
    
    Range of
    
    Range ofOrdinary Shares
    
    
    Exercise Price
    
    Exercise PriceSubject to Option
    
    
    per Ordinary Share
    
    per ADSTotal options outstanding
    
    
    8,374,048
    
    
    US$0.74-US$4.00
    
    US$2.96-US$16.00
  40




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41




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##### Table of Contents



Item 7 Major Shareholders and Related Party Transactions
    Number of A
    
    
    Percentage
    
    
    Number of B
    
    
    PercentageOrdinary Shares
    
    
    Outstanding
    
    
    Ordinary Shares
    
    
    Outstanding
    
    
    PercentageBeneficially
    
    
    A Ordinary
    
    
    Beneficially
    
    
    B Ordinary
    
    
    TotalOwned
    
    
    Shares
    
    
    Owned
    
    
    Shares
    
    
    Voting PowerRonan OCaoimh
    
    
    6,395,955
    (1)
    
    
    7.7
    %
    
    
    
    
    
    
    
    
    
    
    7.5
    %Rory Nealon
    
    
    650,000
    (2)
    
    
    0.8
    %
    
    
    
    
    
    
    
    
    
    
    0.8
    %Jim Walsh
    
    
    1,868,198
    (3)
    
    
    2.3
    %
    
    
    
    
    
    
    
    
    
    
    2.2
    %Denis R. Burger
    
    
    192,416
    (4)
    
    
    0.2
    %
    
    
    
    
    
    
    
    
    
    
    0.2
    %Peter Coyne
    
    
    145,417
    (5)
    
    
    0.2
    %
    
    
    
    
    
    
    
    
    
    
    0.2
    %Kevin Tansley
    
    
    134,083
    (6)
    
    
    0.2
    %
    
    
    
    
    
    
    
    
    
    
    0.2
    %Clint Severson
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    James Merselis
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Potenza Investments Inc, (Potenza) 
Statenhof Building, Reaal 
2A 23 50AA 
Leiderdorp
Netherlands
    
    
    
    
    
    
    
    
    
    
    500,000
    (7)
    
    
    71.4
    %
    
    
    1.2
    %Officers and Directors
    
    
    9,386,069
    
    
    
    11.4
    %
    
    
    
    
    
    
    
    
    
    
    11.1
    %as a group (6 persons)
    
    
    (1)(2)(3)(4)(5)(6)
 (1)
    
    Includes 1,304,500 shares issuable upon exercise of options.(2)
    
    Includes 450,000 shares issuable upon exercise of options.(3)
    
    Includes 484,583 shares issuable upon exercise of options.(4)
    
    Includes 145,146 shares issuable upon exercise of options.(5)
    
    Includes 145,417 shares issuable upon exercise of options.(6)
    
    Includes 82,083 shares issuable upon exercise of options.(7)
    
    These B shares have two votes per share.  42




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Related Party Transactions
     
 
  
    
    43




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##### Table of Contents



Item 8 Financial Information
 Legal Proceedings
  
 Item 9 The Offer and Listing
   ADSsHigh
    
    
    LowYear Ended December 312004
    
    $
    23.96
    
    
    $
    9.402005
    
    $
    11.72
    
    
    $
    6.282006
    
    $
    9.54
    
    
    $
    7.092007
    
    $
    11.75
    
    
    $
    5.722008
    
    $
    6.95
    
    
    $
    1.252007Quarter ended March 31
    
    $
    10.45
    
    
    $
    8.68Quarter ended June 30
    
    $
    11.74
    
    
    $
    9.13Quarter ended September 30
    
    $
    11.75
    
    
    $
    10.05Quarter ended December 31
    
    $
    11.40
    
    
    $
    5.722008Quarter ended March 31
    
    $
    6.95
    
    
    $
    4.15Quarter ended June 30
    
    $
    4.61
    
    
    $
    3.39Quarter ended September 30
    
    $
    3.90
    
    
    $
    2.82Quarter ended December 31
    
    $
    3.10
    
    
    $
    1.25
  44




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##### Table of Contents



ADSsHigh
    
    
    LowMonth EndedMarch 31, 2008
    
    $
    5.01
    
    
    $
    4.15April 30, 2008
    
    $
    4.61
    
    
    $
    3.53May 31, 2008
    
    $
    4.06
    
    
    $
    3.39June 30, 2008
    
    $
    4.25
    
    
    $
    3.81July 31, 2008
    
    $
    3.90
    
    
    $
    3.31August 31, 2008
    
    $
    3.40
    
    
    $
    3.03September 30, 2008
    
    $
    3.39
    
    
    $
    2.82October 31, 2008
    
    $
    3.10
    
    
    $
    2.05November 30, 2007
    
    $
    2.35
    
    
    $
    1.56December 31, 2008
    
    $
    1.79
    
    
    $
    1.25January 31, 2009
    
    $
    2.25
    
    
    $
    1.61February 29, 2009
    
    $
    1.95
    
    
    $
    1.15
   45




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##### Table of Contents



Item 10 Memorandum and Articles of Association
 Objects
  Powers and Duties of Directors
      Rights, Preferences and Restrictions Attaching to Shares
     46




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##### Table of Contents



Action Necessary to Change the Rights of Shareholders
  Calling of AGMs and EGMs of Shareholders
     47




---



##### Table of Contents



Other Provisions of the Memorandum and Articles of Association
  
    
    which would have an effect of delaying, deferring or preventing a change in control of
the Company and which would operate only with respect to a merger, acquisition or corporate
restructuring involving the Company (or any of its subsidiaries); or
    
    governing the ownership threshold above which a shareholder ownership must be disclosed; or
    
    imposing conditions governing changes in the capital which are more stringent than is
required by Irish law.
  Irish Law
     48




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##### Table of Contents



Material Contracts
  Exchange Controls and Other Limitations
Affecting Security Holders
     Taxation
     49




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##### Table of Contents



US Federal Income Tax Consequences to US Holders
         50




---



##### Table of Contents



51




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##### Table of Contents



52




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##### Table of Contents



Republic of Ireland Taxation
           53




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##### Table of Contents




    
    the depository banks ADS register shows that the direct beneficial owner of the
dividends has a US address on the register, or
 
    
    there is an intermediary between the depository bank and the beneficial shareholder and
the depository bank receives confirmation from the intermediary that the beneficial
shareholders address in the intermediarys records is in the US.
    
    
    an individual resident in the US (or certain other countries with which Ireland has a
double taxation treaty) and who is neither resident nor ordinarily resident in Ireland; or
 
    
    a corporation that is not resident in Ireland and which is ultimately controlled by
persons resident in the US (or certain other countries with which Ireland has a double
taxation treaty); or
 
    
    a corporation that is not resident in Ireland and whose principal class of shares (or
its 75% parents principal class of shares) are substantially or regularly traded on a
recognised stock exchange; or
 
    
    is otherwise entitled to an exemption from DWT.
 Disposals of Ordinary Shares or ADSs
   
   54




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##### Table of Contents



. 
  
 
  
  55




---



##### Table of Contents



Dividend Policy
   Documents on Display
  
 Item 11 Qualitative and Quantitative Disclosures about Market Risk
 Qualitative information about Market Risk
        56




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##### Table of Contents



Quantitative information about Market Risk
 Interest rate sensitivity
    GroupMaturity
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    After
    
    
    
    
    
    
    FairBefore December 31
    
    2009
    
    
    2010
    
    
    2011
    
    
    2012
    
    
    2013
    
    
    2014
    
    
    Total
    
    
    valueLong-term debtVariable rate 
US$000
    
    
    12,225
    
    
    
    6,331
    
    
    
    6,367
    
    
    
    9,628
    
    
    
    
    
    
    
    
    
    
    
    34,551
    
    
    
    34,551Average interest rate
    
    
    2.74
    %
    
    
    2.74
    %
    
    
    2.74
    %
    
    
    2.74
    %
    
    
    
    
    
    
    
    
    
    
    2.74
    %Fixed rate  US$000
    
    
    432
    
    
    
    419
    
    
    
    441
    
    
    
    278
    
    
    
    
    
    
    
    
    
    
    
    1,570
    
    
    
    1,597Average interest rate
    
    
    6.25
    %
    
    
    6.14
    %
    
    
    6.12
    %
    
    
    6.12
    %
    
    
    
    
    
    
    
    
    
    
    6.16
    %
 Exchange rate sensitivity
   
 Item 12 Description of Securities Other than Equity Securities
  
 Part II
 
 Item 13 Defaults, Dividend Arrearages and Delinquencies
   57




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Item 14 Material Modifications to the Rights of Security Holders and Use of Proceeds
  
 Item 15 Control and Procedures
 Evaluation of Disclosure Controls and Procedures
 .
  Managements Annual Report on Internal Control over Financial Reporting
     Changes in Internal Controls over Financial Reporting
   58




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##### Table of Contents



,
 Item 16
 
 16A Audit Committee Financial Expert
    
 16B Code of Ethics
  
 16C Principal Accounting fees and services
 Fees Billed by Independent Public Accountants
  Year ended December 31, 2008
    
    
    Year ended December 31, 2007Grant Thornton fees
    
    
    KPMG fees
    
    
    
    
    
    
    KPMG feesUS$'000
    
    
    US$'000
    
    
    %
    
    
    US$'000
    
    
    %Audit
    
    
    515
    
    
    
    
    
    
    
    88
    %
    
    
    1,341
    
    
    
    100
    %Audit-related
    
    
    
    
    
    
    45
    
    
    
    8
    %
    
    
    
    
    
    
    Tax
    
    
    
    
    
    
    24
    
    
    
    4
    %
    
    
    
    
    
    
    Total
    
    
    515
    
    
    
    69
    
    
    
    
    
    
    
    1,341
   Pre-Approval Policies and Procedures
   59




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##### Table of Contents



Exemptions from the Listing Requirements and Standards for Audit Committee
  Purchase of equity securities by the issuer and affiliates and purchasers
  
 Part III
 
 Item 17
 Financial Statements
  
 Item 18
 Financial Statements
  60




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##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
  Internal Control  Integrated Framework
    Internal
Control  Integrated Framework
  
  61




---



##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
     Internal Control  Integrated
Framework
 
  62




---



##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
      
  63




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##### Table of Contents



CONSOLIDATED STATEMENTS OF OPERATIONS
 Year ended December, 312008
    
    
    2007
    
    
    2006Total
    
    
    Total
    
    
    TotalNotes
    
    
    US$000
    
    
    US$000
    
    
    US$000Revenues
    
    
    2
    
    
    
    140,139
    
    
    
    143,617
    
    
    
    118,674Cost of sales
    
    
    
    
    
    
    (77,645
    )
    
    
    (75,643
    )
    
    
    (62,090
    )Cost of sales  restructuring expenses
    
    
    3
    
    
    
    
    
    
    
    (953
    )
    
    
    Cost of sales  inventory write off/ provision
    
    
    2,3
    
    
    
    
    
    
    
    (11,772
    )
    
    
    (5,800
    )Total cost of sales
    
    
    
    
    
    
    (77,645
    )
    
    
    (88,368
    )
    
    
    (67,890
    )Gross profit
    
    
    
    
    
    
    62,494
    
    
    
    55,249
    
    
    
    50,784Other operating income
    
    
    5
    
    
    
    1,173
    
    
    
    413
    
    
    
    275Research and development expenses
    
    
    
    
    
    
    (7,544
    )
    
    
    (6,802
    )
    
    
    (6,696
    )Research and development  restructuring expenses
    
    
    3
    
    
    
    
    
    
    
    (6,907
    )
    
    
    Total research and development expenses
    
    
    
    
    
    
    (7,544
    )
    
    
    (13,709
    )
    
    
    (6,696
    )Selling, general and administrative expenses
    
    
    
    
    
    
    (47,816
    )
    
    
    (51,010
    )
    
    
    (42,422
    )Selling, general and administrative  impairment
charges and restructuring expenses
    
    
    3
    
    
    
    (87,882
    )
    
    
    (20,315
    )
    
    
    Total selling, general and administrative expenses
    
    
    
    
    
    
    (135,698
    )
    
    
    (71,325
    )
    
    
    (42,422
    )Operating (loss)/ profit
    
    
    
    
    
    
    (79,575
    )
    
    
    (29,372
    )
    
    
    1,941Financial income
    
    
    4
    
    
    
    65
    
    
    
    457
    
    
    
    1,164Financial expenses
    
    
    2,4
    
    
    
    (2,160
    )
    
    
    (3,148
    )
    
    
    (2,653
    )Net financing costs
    
    
    
    
    
    
    (2,095
    )
    
    
    (2,691
    )
    
    
    (1,489
    )(Loss)/ profit before tax
    
    
    6
    
    
    
    (81,670
    )
    
    
    (32,063
    )
    
    
    452Total income tax credit /(expense)
    
    
    2,9
    
    
    
    3,892
    
    
    
    (3,309
    )
    
    
    2,824(Loss)/ profit for the year (all attributable to
equity holders)
    
    
    2
    
    
    
    (77,778
    )
    
    
    (35,372
    )
    
    
    3,276Basic (loss)/ earnings per ordinary share 
(US Dollars)
    
    
    10
    
    
    
    (0.96
    )
    
    
    (0.47
    )
    
    
    0.05Basic (loss)/ earnings per B ordinary share 
(US Dollars)
    
    
    10
    
    
    
    (1.91
    )
    
    
    (0.94
    )
    
    
    0.10Diluted (loss)/ earnings per ordinary share (US
Dollars)
    
    
    10
    
    
    
    (0.96
    )
    
    
    (0.47
    )
    
    
    0.05Diluted (loss)/ earnings per B ordinary share (US
Dollars)
    
    
    10
    
    
    
    (1.91
    )
    
    
    (0.94
    )
    
    
    0.10Basic (loss)/ earnings per ADS (US Dollars)
    
    
    10
    
    
    
    (3.82
    )
    
    
    (1.86
    )
    
    
    0.19Diluted (loss)/ earnings per ADS (US Dollars)
    
    
    10
    
    
    
    (3.82
    )
    
    
    (1.86
    )
    
    
    0.19
  64




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CONSOLIDATED STATEMENTS OF RECOGNISED INCOME AND EXPENSE
 Year ended December 31,2008
    
    
    2007
    
    
    2006Notes
    
    
    US$000
    
    
    US$000
    
    
    US$000Foreign exchange translation differences
    
    
    18
    
    
    
    (806
    )
    
    
    1,072
    
    
    
    1,347Cash flow hedges:Effective portion of changes in fair value
    
    
    
    
    
    
    (252
    )
    
    
    224
    
    
    
    226Deferred tax on income and expenses recognised
directly in equity
    
    
    
    
    
    
    26
    
    
    
    (23
    )
    
    
    4Net (expense) / income recognised directly in equity
    
    
    
    
    
    
    (1,032
    )
    
    
    1,273
    
    
    
    1,577Cash flow hedge recycled to the statement of
operations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (166
    )(Loss)/ profit for the year
    
    
    2
    
    
    
    (77,778
    )
    
    
    (35,372
    )
    
    
    3,276Total recognised income and expense (all
attributable to equity holders)
    
    
    
    
    
    
    (78,810
    )
    
    
    (34,099
    )
    
    
    4,687
  65




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##### Table of Contents



CONSOLIDATED BALANCE SHEETS
 December 31,
    
    
    December 31,2008
    
    
    2007Notes
    
    
    US$000
    
    
    US$000ASSETSNon-current assetsProperty, plant and equipment
    
    
    11
    
    
    
    11,855
    
    
    
    26,409Goodwill and intangible assets
    
    
    12
    
    
    
    38,525
    
    
    
    104,928Deferred tax assets
    
    
    13
    
    
    
    3,051
    
    
    
    3,937Other assets
    
    
    14
    
    
    
    877
    
    
    
    896Total non-current assets
    
    
    
    
    
    
    54,308
    
    
    
    136,170Current assetsInventories
    
    
    15
    
    
    
    42,317
    
    
    
    44,420Trade and other receivables
    
    
    16
    
    
    
    27,418
    
    
    
    25,683Income tax receivable
    
    
    
    
    
    
    282
    
    
    
    782Derivative financial instruments
    
    
    29
    
    
    
    
    
    
    
    224Cash and cash equivalents
    
    
    17
    
    
    
    5,184
    
    
    
    8,700Total current assets
    
    
    
    
    
    
    75,201
    
    
    
    79,809TOTAL ASSETS
    
    
    2
    
    
    
    129,509
    
    
    
    215,979EQUITY AND LIABILITIESEquity attributable to the equity holders of the parentShare capital
    
    
    18
    
    
    
    1,070
    
    
    
    991Share premium
    
    
    18
    
    
    
    159,864
    
    
    
    153,961Accumulated deficit
    
    
    18
    
    
    
    (99,493
    )
    
    
    (22,908
    )Translation reserve
    
    
    18
    
    
    
    (9
    )
    
    
    797Other reserves
    
    
    18
    
    
    
    4,473
    
    
    
    4,004Total equity
    
    
    
    
    
    
    65,905
    
    
    
    136,845Current liabilitiesInterest-bearing loans and borrowings
    
    
    20
    
    
    
    12,656
    
    
    
    15,821Derivative financial instruments
    
    
    29
    
    
    
    27
    
    
    
    Income tax payable
    
    
    
    
    
    
    5
    
    
    
    86Trade and other payables
    
    
    22
    
    
    
    22,969
    
    
    
    24,779Other financial liabilities
    
    
    23
    
    
    
    
    
    
    
    2,725Provisions
    
    
    24
    
    
    
    50
    
    
    
    100Total current liabilities
    
    
    
    
    
    
    35,707
    
    
    
    43,511Non-current liabilitiesInterest-bearing loans and borrowings
    
    
    20
    
    
    
    23,465
    
    
    
    26,312Other payables
    
    
    25
    
    
    
    59
    
    
    
    74Deferred tax liabilities
    
    
    13
    
    
    
    4,373
    
    
    
    9,237Total non-current liabilities
    
    
    
    
    
    
    27,897
    
    
    
    35,623TOTAL LIABILITIES
    
    
    2
    
    
    
    63,604
    
    
    
    79,134TOTAL EQUITY AND LIABILITIES
    
    
    
    
    
    
    129,509
    
    
    
    215,979
  66




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##### Table of Contents



CONSOLIDATED STATEMENT OF CASH FLOWS
 Year ended December 31,2008
    
    
    2007
    
    
    2006Notes
    
    
    US$000
    
    
    US$000
    
    
    US$000Cash flows from operating activities(Loss)/ profit for the year
    
    
    
    
    
    
    (77,778
    )
    
    
    (35,372
    )
    
    
    3,276Adjustments to reconcile net profit to cash provided
by operating activities:Depreciation
    
    
    
    
    
    
    4,425
    
    
    
    4,341
    
    
    
    3,736Amortisation
    
    
    
    
    
    
    3,616
    
    
    
    3,418
    
    
    
    2,687Income tax (credit)/expense
    
    
    
    
    
    
    (3,892
    )
    
    
    3,309
    
    
    
    (2,824
    )Financial income
    
    
    
    
    
    
    (65
    )
    
    
    (457
    )
    
    
    (1,164
    )Financial expense
    
    
    
    
    
    
    2,160
    
    
    
    3,148
    
    
    
    2,653Share-based payments
    
    
    
    
    
    
    1,166
    
    
    
    1,403
    
    
    
    1,141Foreign exchange losses on operating cash flows
    
    
    
    
    
    
    77
    
    
    
    (26
    )
    
    
    (100
    )(Profit)/loss on disposal / retirement of property,
plant and equipment
    
    
    
    
    
    
    (682
    )
    
    
    17
    
    
    
    (2
    )Impairment of assets
    
    
    3
    
    
    
    85,793
    
    
    
    19,156
    
    
    
    Non- cash restructuring expenses
    
    
    3
    
    
    
    
    
    
    
    18,573
    
    
    
    Inventory write off
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,800Other non-cash items
    
    
    
    
    
    
    871
    
    
    
    577
    
    
    
    469Operating cash flows before changes in working capital
    
    
    
    
    
    
    15,691
    
    
    
    18,087
    
    
    
    15,672(Increase)/decrease in trade and other receivables
    
    
    
    
    
    
    (4,131
    )
    
    
    5,226
    
    
    
    (9,962
    )Decrease/(increase) in inventories
    
    
    
    
    
    
    2,062
    
    
    
    (7,101
    )
    
    
    (5,434
    )(Decrease)/increase in trade and other payables
    
    
    
    
    
    
    (676
    )
    
    
    1,966
    
    
    
    8,041Cash generated from operations
    
    
    
    
    
    
    12,946
    
    
    
    18,178
    
    
    
    8,317Interest paid
    
    
    
    
    
    
    (2,639
    )
    
    
    (2,802
    )
    
    
    (1,642
    )Interest received
    
    
    
    
    
    
    63
    
    
    
    429
    
    
    
    839Income taxes paid
    
    
    
    
    
    
    359
    
    
    
    (456
    )
    
    
    (146
    )Net cash provided by operating activities
    
    
    
    
    
    
    10,729
    
    
    
    15,349
    
    
    
    7,368Cash flows from investing activitiesPayments to acquire subsidiaries and businesses
    
    
    26
    
    
    
    
    
    
    
    (4,414
    )
    
    
    (39,334
    )Deferred consideration to acquire subsidiaries and
businesses
    
    
    
    
    
    
    (2,802
    )
    
    
    (3,472
    )
    
    
    (6,802
    )Payments to acquire intangible assets
    
    
    
    
    
    
    (8,981
    )
    
    
    (7,851
    )
    
    
    (6,085
    )Disposal/ (acquisition) of financial assets
    
    
    
    
    
    
    
    
    
    
    15,500
    
    
    
    (6,500
    )Proceeds from disposal of property, plant and equipment
    
    
    
    
    
    
    808
    
    
    
    84
    
    
    
    205Acquisition of property, plant and equipment
    
    
    
    
    
    
    (3,713
    )
    
    
    (8,262
    )
    
    
    (4,751
    )Net cash used in investing activities
    
    
    
    
    
    
    (14,688
    )
    
    
    (8,415
    )
    
    
    (63,267
    )Cash flows from financing activitiesProceeds from issue of ordinary share capital
    
    
    
    
    
    
    7,116
    
    
    
    454
    
    
    
    25,265Proceeds from borrowings, short-term debt
    
    
    
    
    
    
    
    
    
    
    5,000
    
    
    
    6,000Proceeds from borrowings, long-term debt
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    24,000Expenses paid in connection with share issue and debt
financing
    
    
    
    
    
    
    (624
    )
    
    
    (70
    )
    
    
    (1,526
    )Repayment of long-term debt
    
    
    
    
    
    
    (5,224
    )
    
    
    (8,285
    )
    
    
    (1,276
    )Proceeds from new finance leases
    
    
    
    
    
    
    
    
    
    
    2,087
    
    
    
    78Payment of finance lease liabilities
    
    
    
    
    
    
    (787
    )
    
    
    (294
    )
    
    
    (276
    )Repayment of convertible debt
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,644
    )Net cash provided by (used in) financing activities
    
    
    
    
    
    
    481
    
    
    
    (1,108
    )
    
    
    48,621(Decrease) / increase in cash and cash equivalents
    
    
    
    
    
    
    (3,478
    )
    
    
    5,826
    
    
    
    (7,278
    )Effects of exchange rate movements on cash held
    
    
    
    
    
    
    (38
    )
    
    
    53
    
    
    
    218Cash and cash equivalents at beginning of year
    
    
    
    
    
    
    8,700
    
    
    
    2,821
    
    
    
    9,881Cash and cash equivalents at end of year
    
    
    17
    
    
    
    5,184
    
    
    
    8,700
    
    
    
    2,821
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 1.
    
    BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIESThe principal accounting policies adopted by Trinity Biotech plc and its subsidiaries, (the
Group), are as follows:a)
    
    Statement of complianceThe consolidated financial statements have been prepared in accordance with International
Financial Reporting Standards (IFRS) both as issued by the International Accounting Standards
Board (IASB) and as subsequently adopted by the European Union (EU) (together IFRS). The
IFRS applied are those effective for accounting periods beginning on or after 1 January 2008.
Consolidated financial statements are required by Irish law to comply with IFRS as adopted by the
EU which differ in certain respects from IFRS as issued by the IASB. These differences
predominantly relate to the timing of adoption of new standards by the EU. However, as none of
the differences are relevant in the context of Trinity Biotech, the consolidated financial
statements for the periods presented comply with IFRS both as issued by the IASB and as adopted
by the EU.b)
    
    Basis of preparationThe consolidated financial statements have been prepared in United States Dollars (US$), rounded to
the nearest thousand, under the historical cost basis of accounting, except for derivative
financial instruments and share-based payments which are initially recorded at fair value.
Derivatives are also subsequently carried at fair value.The preparation of financial statements in conformity with IFRS requires management to make
judgements, estimates and assumptions that affect the application of policies and amounts reported
in the financial statements and accompanying notes. The estimates and associated assumptions are
based on historical experience and various other factors that are believed to be reasonable under
the circumstances, the results of which form the basis of making the judgements about the carrying
value of assets and liabilities that are not readily apparent from other sources. Actual results
may differ from these estimates.The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the revision affects
only that period or in the period of the revision and future periods if the revision affects both
current and future periods.Judgements made by management that have a significant effect on the financial statements and
estimates with a significant risk of material adjustment in the next year are discussed in note
30.Having considered the Groups current financial position, its cashflow projections, its existing
bank debt facility and other potential sources of funding available to the Group, the directors
believe that the Group will be able to continue in operational existence for at least the next 12
months from the date of approval of these consolidated financial statements and that it is
appropriate to continue to prepare the consolidated financial statements on a going concern basis.The accounting policies set out below have been applied consistently to all periods presented in
these consolidated financial statements. The accounting policies have been applied consistently by
all Group entities.Certain prior year amounts have been reclassified to conform to current presentation.c)
    
    Basis of consolidationSubsidiariesSubsidiaries are entities controlled by the Company. Control exists when the Company has the
power, directly or indirectly, to govern the financial and reporting policies of an entity so as to
obtain benefits from its activities. In assessing control, potential voting rights that presently
are exercisable or convertible are taken into account. The
financial statements of subsidiaries are included in the consolidated financial statements from the
date that control commences until the date that control ceases.Transactions eliminated on consolidationIntra-group balances and any unrealised gains or losses or income and expenses arising from
intra-group transactions are eliminated in preparing the consolidated financial statements.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 d)
    
    Property, plant and equipmentOwned assetsItems of property, plant and equipment are stated at cost less any accumulated depreciation and any
impairment losses (see note 1(h)). The cost of self-constructed assets includes the cost of
materials, direct labour and attributable overheads. It is not Group policy to revalue any items
of property, plant and equipment.Depreciation is charged to the statement of operations on a straight-line basis to write-off the
cost of the assets over their expected useful lives as follows:
 
    
    Leasehold improvements
    
    5-10 years
    
    Office equipment and fittings
    
    10 years
    
    Buildings
    
    50 years
    
    Computer equipment
    
    3-5 years
    
    Plant and equipment
    
    5-10 years
 Land is not depreciated. The residual values, if not insignificant, useful lives and depreciation
methods of property, plant and equipment are reviewed and adjusted if appropriate, at each balance
sheet date.Leased assets  as lesseeLeases under terms of which the Group assumes substantially all the risks and rewards of ownership
are classified as finance leases. Property, plant and equipment acquired by way of finance lease
is stated at an amount equal to the lower of its fair value and present value of the minimum lease
payments at inception of the lease, less accumulated depreciation and any impairment losses.Depreciation is calculated in order to write-off the amounts capitalised over the estimated useful
lives of the assets, or the lease term if shorter, by equal annual instalments. The excess of the
total rentals under a lease over the amount capitalised is treated as interest, which is charged to
the statement of operations in proportion to the amount outstanding under the lease. Leased assets
are reviewed for impairment (see note 1(h)).Leases other than finance leases are classified as operating leases, and the rentals thereunder
are charged to the statement of operations on a straight line basis over the period of the leases.
Lease incentives are recognised in the statement of operations on a straight-line basis over the
lease term.Leased assets  as lessorLeases where the Group substantially transfers the risks and benefits of ownership of the asset to
the customer are classified as finance leases within finance lease receivables. The Group
recognises the amount receivable from assets leased under finance leases at an amount equal to the
net investment in the lease. Finance lease income is recognised as revenue in the statement of
operations reflecting a constant periodic rate of return on the Groups net investment in the
lease.Assets provided to customers under leases other than finance leases are classified as operating
leases and carried in property, plant and equipment at cost and are depreciated on a straight-line
basis over the useful life of the asset or the lease term, if shorter.Subsequent costsThe Group recognises in the carrying amount of an item of property, plant and equipment the cost of
replacing part of such an item when that cost is incurred if it is probable that the future
economic benefits embodied within the
item will flow to the Group and the cost of the replaced item can be measured reliably. All other
costs are recognised in the statement of operations as an expense as incurred.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 e)
    
    Business combinationsAll business combinations are accounted for by applying the purchase method.The cost of a business combination is measured as the aggregate of the fair values at the date of
exchange of assets given, liabilities incurred or assumed and equity instruments issued in exchange
for control together with any directly attributable expenses. To the extent that settlement of all
or any part of a business combination is deferred for a period of 12 months or longer, the fair
value of the deferred component is determined through discounting the amounts payable to their
present value at the date of exchange. The discount component is unwound as an interest charge in
the statement of operations over the life of the obligation.Where a business combination agreement provides for an adjustment to the cost of the combination
contingent on future events, the estimated present value of the adjustment is included in the cost
at the acquisition date. Changes in these amounts subsequently are reflected in goodwill.When the initial accounting for a business combination is determined provisionally, any subsequent
adjustments to the provisional values allocated to the identifiable assets, liabilities and
contingent liabilities are made within twelve months of the acquisition date and treated
retrospectively as an adjustment to goodwill.f)
    
    GoodwillIn respect of business combinations that have occurred since January 1, 2004 (being the transition
date to IFRS), goodwill represents the difference between the cost of the acquisition and the fair
value of the net identifiable assets acquired.In respect of acquisitions prior to this date, goodwill is included on the basis of its deemed
cost, which represents the amount recorded under the old basis of accounting, Irish GAAP,
(Previous GAAP). Save for retrospective restatement of deferred tax as an adjustment to retained
earnings in accordance with IAS 12, Income Taxes,the classification and accounting treatment of
business combinations undertaken prior to the transition date were not reconsidered in preparing
the Groups opening IFRS balance sheet as at January 1, 2004.To the extent that the Groups interest in the net fair value of the identifiable assets,
liabilities and contingent liabilities acquired exceeds the cost of a business combination, the
identification and measurement of the related assets, liabilities and contingent liabilities are
revisited accompanied by a reassessment of the cost of the transaction, and any remaining balance
is immediately recognised in the statement of operations.At the acquisition date, any goodwill is allocated to each of the cash generating units expected to
benefit from the combinations synergies. Following initial recognition, goodwill is stated at
cost less any accumulated impairment losses (see note 1(h)).g)
    
    Intangibles, including research and development (other than goodwill)An intangible asset, which is an identifiable non-monetary asset without physical substance, is
recognised to the extent that it is probable that the expected future economic benefits
attributable to the asset will flow to the Group and that its cost can be measured reliably. The
asset is deemed to be identifiable when it is separable (that is, capable of being divided from the
entity and sold, transferred, licensed, rented or exchanged, either individually or
together with a related contract, asset or liability) or when it arises from contractual or other
legal rights, regardless of whether those rights are transferable or separable from the Group or
from other rights and obligations.Intangible assets acquired as part of a business combination are capitalised separately from
goodwill if the intangible asset meets the definition of an asset and the fair value can be
reliably measured on initial recognition. Subsequent to initial recognition, these intangible
assets are carried at cost less any accumulated amortisation and any accumulated impairment losses
(note 1(h)). Definite lived intangible assets are reviewed for indicators of impairment annually
while indefinite lived assets and those not yet brought into use are tested for impairment
annually, either individually or at the cash generating unit level.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 Research and developmentExpenditure on research activities, undertaken with the prospect of gaining new scientific or
technical knowledge and understanding, is recognised in the statement of operations as an expense
as incurred. Expenditure on development activities, whereby research findings are applied to a
plan or design for the production of new or substantially improved products and processes, is
capitalised if the product or process is technically and commercially feasible and the Group has
sufficient resources to complete the development. The expenditure capitalised includes the cost of
materials, direct labour and attributable overheads and third party costs. Subsequent expenditure
on capitalised intangible assets is capitalised only when it increases the future economic benefits
embodied in the specific asset to which it relates. All other development expenditure is expensed
as incurred. Subsequent to initial recognition, the capitalised development expenditure is carried
at cost less any accumulated amortisation and any accumulated impairment losses (note 1(h)).Expenditure on internally generated goodwill and brands is recognised in the statement of
operations as an expense as incurred.AmortisationAmortisation is charged to the statement of operations on a straight-line basis over the estimated
useful lives of intangible assets, unless such lives are indefinite. Intangible assets are
amortised from the date they are available for use. The estimated useful lives are as follows:
 
    
    Patents and licences
    
    6-15 years
    
    Capitalised development costs
    
    15 years
    
    Other (including acquired customer and supplier lists)
    
    6-15 years
 Certain trade names acquired are deemed to have an indefinite useful life.Where amortisation is charged on assets with finite lives, this expense is taken to the statement
of operations through the selling, general and administrative expenses line.Useful lives are examined on an annual basis and adjustments, where applicable, are made on a
prospective basis.h)
    
    ImpairmentThe carrying amount of the Groups assets, other than inventories and deferred tax assets, are
reviewed at each balance sheet date to determine whether there is any indication of impairment. If
any such indication exists, the assets recoverable amount (being the greater of fair value less
costs to sell and value in use) is assessed at each balance sheet date.Fair value less costs to sell is defined as the amount obtainable from the sale of an asset or
cash-generating unit in an arms length transaction between knowledgeable and willing parties, less
the costs that would be incurred in disposal. Value in use is defined as the present value of the
future cash flows expected to be derived through the continued use of an asset or cash-generating
unit. In assessing value in use, the estimated future cash flows are discounted to their present
value using a pre-tax discount rate that reflects current market assessments of the time
value of money and the risks specific to the asset for which the future cash flow estimates have
not yet been adjusted. The estimates of future cash flows exclude cash inflows or outflows
attributable to financing activities and income tax. For an asset that does not generate largely
independent cash flows, the recoverable amount is determined by reference to the cash generating
unit to which the asset belongs.For goodwill, assets that have an indefinite useful life and intangible assets that are not yet
available for use, the recoverable amount is estimated at each balance sheet date at the cash
generating unit level. The goodwill and indefinite-lived assets were reviewed for impairment at
December 31, 2006, December 31, 2007 and December 2008. See note 12.An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating
unit exceeds its recoverable amount. Impairment losses are recognised in the statement of
operations.Impairment losses recognised in respect of cash-generating units are allocated first to reduce the
carrying amount of any goodwill allocated to cash-generating units and then to reduce the carrying
amount of other assets in the cash-generating units on a pro-rata basis.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 An impairment loss is reversed only to the extent that the assets carrying amount does not exceed
the carrying amount that would have been determined, net of depreciation or amortisation, if no
impairment loss had been recognised.An impairment loss in respect of goodwill is not reversed.Following recognition of any impairment loss (and on recognition of an impairment loss reversal),
the depreciation or amortisation charge applicable to the asset or cash generating unit is adjusted
prospectively with the objective of systematically allocating the revised carrying amount, net of
any residual value, over the remaining useful life.i)
    
    InventoriesInventories are stated at the lower of cost and net realisable value. Cost is based on the
first-in, first-out principle and includes all expenditure which has been incurred in bringing the
products to their present location and condition, and includes an appropriate allocation of
manufacturing overhead based on the normal level of operating capacity. Net realisable value is
the estimated selling price of inventory on hand in the ordinary course of business less all
further costs to completion and costs expected to be incurred in selling these products.The Group provides for inventory, based on estimates of the expected realisability of the Groups
inventory. The estimated realisability is evaluated on a case-by-case basis and any inventory that
is approaching its use-by date and for which no further re-processing can be performed is written
off. Any reversal of an inventory provision is recognised in the statement of operations in the
year in which the reversal occurs.j)
    
    Trade and other receivablesTrade and other receivables are stated at their amortised cost less impairment losses
incurred. Cost approximates fair value given the short dated nature of these assets.k)
    
    Trade and other payablesTrade and other payables are stated at cost. Cost approximates fair value given the short
dated nature of these liabilities.l)
    
    Cash and cash equivalentsCash and cash equivalents comprise cash balances and short-term deposits with a maturity of three
months or less. The Group has no short-term bank overdraft facilities. Where restrictions are
imposed by third parties, such as lending institutions, on cash balances held by the Group these
are treated as financial assets in the financial statements.m)
    
    Interest-bearing loans and borrowingsLoans and borrowings, including promissory notesUnder IFRS interest-bearing loans, borrowings and promissory notes are recognised initially at
fair value less attributable transaction costs. Subsequent to initial recognition,
interest-bearing borrowings are stated at amortised cost, with any difference between cost and
redemption value being recognised in the statement of operations over the period of the
borrowings on an effective interest basis.Convertible notesUnder IFRS convertible notes that can be converted into share capital at the option of the holder,
where the number of shares issued does not vary with changes in their fair value, are accounted for
as compound financial instruments. Transaction costs that relate to the issue of a compound
financial instrument are allocated to the liability and equity components in proportion to the
allocation of proceeds. The equity component of the convertible notes is calculated as the excess
of the issue proceeds over the present value of the future interest and principal payments,
discounted at the market rate of interest applicable to similar liabilities that do not have a
conversion option. The interest expense recognised in the statement of operations is calculated
using the effective interest rate method.n)
    
    Share-based paymentsFor equity-settled share-based payments (share options), the Group measures the services received
and the corresponding increase in equity at fair value at the measurement date (which is the
grant date) using a trinomial model. Given that the share options granted do not vest until the
completion of a specified period of service, the fair value, which is assessed at the grant date,
is recognised on the basis that the services to be rendered by employees as consideration for the
granting of share options will be received over the vesting period.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 
 The share options issued by the Group are not subject to market-based vesting conditions as
defined in IFRS 2, Share-based Payments. Non-market vesting conditions are not taken into
account when estimating the fair value of share options as at the grant date; such conditions are
taken into account through adjusting the number of equity instruments included in the measurement
of the transaction amount so that, ultimately, the amount recognised equates to the number of
equity instruments that actually vest. The expense in the statement of operations in relation to
share options represents the product of the total number of options anticipated to vest and the
fair value of those options; this amount is allocated to accounting periods on a straight-line
basis over the vesting period. Given that the performance conditions underlying the Groups
share options are non-market in nature, the cumulative charge to the statement of operations is
only reversed where the performance condition is not met or where an employee in receipt of share
options relinquishes service prior to completion of the expected vesting period. Share based
payments, to the extent they relate to direct labour involved in development activities, are
capitalised, see 1(g).The proceeds received net of any directly attributable transaction costs are credited to share
capital (nominal value) and share premium when the options are exercised. The Group does not
operate any cash-settled share-based payment schemes or share-based payment transactions with
cash alternatives as defined in IFRS 2.o)
    
    Government grantsGrants that compensate the Group for expenses incurred such as research and development,
employment and training are recognised as revenue or income in the statement of operations on a
systematic basis in the same periods in which the expenses are incurred. Grants that compensate
the Group for the cost of an asset are recognised in the statement of operations as other
operating income on a systematic basis over the useful life of the asset.p)
    
    Revenue recognitionGoods sold and services renderedRevenue from the sale of goods is recognised in the statement of operations when the significant
risks and rewards of ownership have been transferred to the buyer. Revenue from products is
generally recorded as of the date of shipment. Revenue is recognised when the Group has satisfied
all of its obligations to the customer. Revenue, including any amounts invoiced for shipping and
handling costs, represents the value of goods supplied to external customers, net of discounts
and excluding sales taxes.Revenue from services rendered is recognised in the statement of operations in proportion to the
stage of completion of the transaction at the balance sheet date.Revenue is recognised to the extent that it is probable that economic benefit will flow to the
Group, that the risks and rewards of ownership have passed to the buyer and the revenue can be
measured. No revenue is recognised if there is uncertainty regarding recovery of the
consideration due at the outset of the transaction or the possible return of goods.The Group leases instruments under operating and finance leases as part of its business. In cases
where the risks and rewards of ownership of the instrument pass to the customer, the fair value of
the instrument is recognised as revenue at the commencement of the lease and is matched by the
related cost of sale. In the case of operating leases of instruments which typically involve
commitments by the customer to pay a fee per test run on the instruments, revenue is recognised on
the basis of customer usage of the instruments. See also note 1(d).Other operating incomeRental income from sub-leasing premises under operating leases, where the risks and rewards of the
premises remain with the lessor, is recognised in the statement of operations as other operating
income on a straight-line basis over the term of the lease.q)
    
    Employee benefitsDefined contribution plansThe Group operates defined contribution schemes in various locations where its subsidiaries are
based. Contributions to the defined contribution schemes are recognised in the statement of
operations in the period in which the related service is received from the employee.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 Other long-term benefitsWhere employees participate in the Groups other long-term benefit schemes (such as permanent
health insurance schemes under which the scheme insures the employees), or where the Group
contributes to insurance schemes for employees, the Group pays an annual fee to a service provider,
and accordingly the Group expenses such payments as incurred.Termination benefitsTermination benefits are recognised as an expense when the Group is demonstrably committed, without
realistic possibility of withdrawal, to a formal detailed plan to either terminate employment
before normal retirement date, or to provide termination benefits as a result of an offer made to
encourage voluntary redundancy.r)
    
    Foreign currencyA majority of the revenue of the Group is generated in US dollars. The Groups management has
determined that the US dollar is the primary currency of the economic environment in which the
Company and its subsidiaries (with the exception of the Groups subsidiaries in Germany and Sweden)
principally operate. Thus the functional currency of the Company and its subsidiaries (other than
those subsidiaries in Germany and Sweden) is the US Dollar. The functional currency of the German
and Swedish subsidiaries is the euro and the Swedish Kroner, respectively. The presentation
currency of the Company and Group is the US Dollar. Monetary assets and liabilities denominated in
foreign currencies are translated at the rates of exchange ruling at the balance sheet date. The
resulting gains and losses are included in the statement of operations. Non-monetary assets and
liabilities that are measured in terms of historical cost in a foreign currency are translated
using the exchange rate at the date of the transaction.Results and cash flows of subsidiary undertakings, which have a functional currency other than the
US Dollar, are translated into US Dollars at average exchange rates for the year, and the related
balance sheets have been translated at the rates of exchange ruling on the balance sheet date. Any
exchange differences arising from the translations are recognised in the currency translation
reserve via the statement of recognised income and expense.s)
    
    Derivative financial instrumentsThe activities of the Group expose it primarily to changes in foreign exchange rates and interest
rates. The Group uses derivative financial instruments, when necessary, such as forward foreign
exchange contracts to hedge these exposures.The Group enters into forward contracts to sell US Dollars forward for euro. The principal exchange
risk identified by the Group is with respect to fluctuations in the euro as a substantial portion
of its expenses are denominated in euro but its revenues are primarily denominated in US Dollars.
Trinity Biotech monitors its exposure to foreign currency movements and may use these forward
contracts as cash flow hedging instruments whose objective is to cover a portion of this euro
expense.At the inception of a hedging transaction entailing the use of derivatives, the Group documents the
relationship between the hedged item and the hedging instrument together with its risk management
objective and the strategy underlying the proposed transaction. The Group also documents its
quarterly assessment of the effectiveness of the hedge in offsetting movements in the cash flows of
the hedged items.Derivative financial instruments are recognised at fair value. Where derivatives do not fulfil the
criteria for hedge accounting, they are classified as held-for-trading and changes in fair values
are reported in the statement of operations. The fair value of forward exchange contracts is
calculated by reference to current forward exchange rates for contracts with similar maturity
profiles and equates to the current market price at the balance sheet date.The portion of the gain or loss on a hedging instrument that is deemed to be an effective cash flow
hedge is recognised directly in the hedging reserve in equity and the ineffective portion is
recognised in the statement of operations. As the forward contracts are exercised the net
cumulative gain or loss recognised in the hedging reserve is transferred to the statement of
operations and reflected in the same line as the hedged item.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 t)
    
    Segment reportingA segment is a distinguishable component of the Group that is engaged either in providing products
or services (business segment), or in providing products or services within a particular economic
environment (geographical segment), which is subject to risks and returns different to those of
other segments. Stemming from the Groups internal organisational and management structure and its
system of internal financial reporting, segmentation by geographic location of assets is regarded
as being the predominant source and nature of the risks and returns facing the Group and is thus
the primary segment format under IAS 14, Segment Reporting.Business segmentation is therefore the
secondary segment format.u)
    
    Tax (current and deferred)Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is
recognised in the statement of operations except to the extent that it relates to items recognised
directly in equity, in which case it is recognised in equity.Current tax represents the expected tax payable (or recoverable) on the taxable profit for the year
using tax rates enacted or substantively enacted at the balance sheet date and taking into account
any adjustments stemming from prior years.Deferred tax is provided on the basis of the balance sheet liability method on all temporary
differences at the balance sheet date which is defined as the difference between the tax bases of
assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets
and liabilities are not subject to discounting and are measured at the tax rates that are
anticipated to apply in the period in which the asset is realised or the liability is settled based
on tax rates and tax laws that have been enacted or substantively enacted at the balance sheet
date. The amount of deferred tax provided is based on the expected manner of realisation or
settlement of the carrying amount of assets and liabilities.Deferred tax assets and liabilities are recognised for all temporary differences (that is,
differences between the carrying amount of the asset or liability and its tax base) with the
exception of the following:
 i.
    
    Where the deferred tax liability arises from goodwill not deductible for tax purposes
or the initial recognition of an asset or a liability in a transaction that is not a
business combination and affects neither the accounting profit nor the taxable profit or
loss at the time of the transaction; andii.
    
    Where, in respect of temporary differences associated with investments in subsidiary
undertakings, the timing of the reversal of the temporary difference is subject to control
and it is probable that the temporary difference will not reverse in the foreseeable
future.
 Where goodwill is tax deductible, a deferred tax liability is not recognised on initial recognition
of goodwill. It is recognised subsequently for the taxable temporary difference which arises when
the goodwill is amortised for tax with no corresponding adjustment to the carrying value of the
goodwill.The carrying amounts of deferred tax assets are subject to review at each balance sheet date and
are derecognised to the extent that future taxable profits are considered to be inadequate to allow
all or part of any deferred tax asset to be utilised.v)
    
    ProvisionsA provision is recognised in the balance sheet when the Group has a present legal or constructive
obligation as a result of a past event, and it is probable that an outflow of economic benefits
will be required to settle the obligation.w)
    
    Cost of salesCost of sales comprises product cost including manufacturing and payroll costs, quality control,
shipping, handling, and packaging costs and the cost of services provided.x)
    
    Finance income and costsFinancing expenses comprise costs payable on leases, loans and borrowings including promissory
notes. Interest payable on loans and borrowings, promissory notes and convertible notes is
calculated using the effective interest rate method. Interest payable on finance leases is
allocated to each period during the lease term so as to produce a constant periodic rate of
interest on the remaining balance of the liability. Financing expenses also includes the financing
element of long term liabilities which have been discounted.
  75




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 Finance income comprises interest income on deposits and is recognised in the statement of
operations as it accrues, using the effective interest method.y)
    
    Warrant reserveThe Group calculates the fair value of warrants at the date of issue taking the amount directly to
equity. The fair value is calculated using a recognised valuation methodology for the valuation of
financial instruments (that is, the trinomial model). The fair value which is assessed at the
grant date is calculated on the basis of the contractual term of the warrants.z)
    
    New IFRS Standards and Interpretations not appliedThe IASB and IFRIC have issued additional standards and interpretations which are effective for
periods starting after January 1, 2008, some of which have not yet been adopted by the EU. The
following standards and interpretations have yet to be adopted by the Group:
 International Financial Reporting Standards (IFRS/IAS)
    
    Effective dateIFRS 3
    
    (Revised) Business Combinations
    
    July 1, 2009 (adopted by the EU)IFRS 8
    
    Operating Segments
    
    January 1, 2009 (adopted by the EU)IAS 1(amendment)
    
    Presentation of Financial Statements
    
    January 1, 2009 (not adopted by the
EU)IAS23 (amendment)
    
    Borrowing Costs
    
    January 1, 2009 (not adopted by the
EU)IAS 27
    
    Consolidated and Separate Financial Statements
    
    July 1, 2009 (not adopted by the EU)IAS 32/ IAS 1 (amendment)
    
    Puttable Instruments and Obligations arising on Liquidation
    
    January 1, 2009 (not adopted by the
EU)IFRS 2 Share- based Payments
    
    Vesting Conditions and Cancellations
    
    January 1, 2009 (not adopted by the
EU)IAS 39
(amendment)
    
    Eligible hedged items
    
    July 1, 2009 (not adopted by the EU)IFRS 1
(amendment)
    
    Cost of an Investment in a Subsidiary, Jointly Controlled
Entity or Associate
    
    January 1, 2009 (not adopted by the
EU)International Financial Reporting Interpretations Committee (IFRIC)IFRIC 13
    
    Customer Loyalty Programmes
    
    January 1, 2009 (not adopted by the
EU)IFRIC 15
    
    Agreements for the Construction of Real Estate
    
    January 1, 2009 (not adopted by the
EU)IFRIC 16
    
    Hedges of a Net Investment in a Foreign Operation
    
    January 1, 2009 (not adopted by the
EU)
 The Group does not anticipate that the adoption of these standards and interpretations will have a
material effect on its financial statements on initial adoption. Upon adoption of IFRS 8 and IAS 1,
the Group may be required to disclose additional information on its operating segments but this
will have no effect on reported income or net assets.2.
    
    SEGMENT INFORMATIONSegment information is presented in respect of the Groups geographical and business segments. The
primary format, geographical segments, is based on the Groups management and internal reporting
structure. Sales of product between companies in the Group are made on commercial terms which
reflect the nature of the relationship between the relevant companies. Segment results, assets and
liabilities include items directly attributable to a segment as well as those that can be allocated
on a reasonable basis. Unallocated items comprise interest-bearing loans, borrowings and expenses
and corporate expenses. Segment capital expenditure is the total cost during the period to acquire
segment plant, property and equipment and intangible assets that are expected to be used for more
than one period, whether acquired on acquisition of a business combination or through acquisitions
as part of the current operations.
  76




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 
 Geographical segmentsThe Group comprises two main geographical segments (i) the Americas and (ii) Rest of World. The
Groups geographical segments are determined by the location of the Groups assets and operations.The Group has also presented a geographical analysis of the segmental data for Ireland on the basis
of the aggregation thresholds contained in IAS 14.Business segmentsThe Group operates in one business segment, the market for diagnostic tests for a range of diseases
and other medical conditions. In determining the nature of its segmentation, the Group has
considered the nature of the products, their risks and rewards, the nature of the production base,
the customer base and the nature of the regulatory environment. The Group acquires, manufactures
and markets a range of diagnostic products. The Groups products are sold to a similar customer
base and the main body whose regulation the Groups products must comply with is the Food and Drug
Administration (FDA) in the US.The following presents revenue and profit information and certain asset and liability information
regarding the Groups geographical segments.a)
    
    The distribution of revenue by geographical area based on location of assets was as
follows:Revenue
 Rest of WorldAmericas
    
    
    Ireland
    
    
    Other
    
    
    Eliminations
    
    
    TotalYear ended December 31, 2008
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Revenue from external customers
    
    
    48,615
    
    
    
    72,676
    
    
    
    18,848
    
    
    
    
    
    
    
    140,139Inter-segment revenue
    
    
    28,345
    
    
    
    22,248
    
    
    
    12,435
    
    
    
    (63,028
    )
    
    
    Total revenue
    
    
    76,960
    
    
    
    94,924
    
    
    
    31,283
    
    
    
    (63,028
    )
    
    
    140,139
 Rest of WorldAmericas
    
    
    Ireland
    
    
    Other
    
    
    Eliminations
    
    
    TotalYear ended December 31, 2007
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Revenue from external customers
    
    
    37,095
    
    
    
    64,210
    
    
    
    42,312
    
    
    
    
    
    
    
    143,617Inter-segment revenue
    
    
    24,815
    
    
    
    27,196
    
    
    
    10,134
    
    
    
    (62,145
    )
    
    
    Total revenue
    
    
    61,910
    
    
    
    91,406
    
    
    
    52,446
    
    
    
    (62,145
    )
    
    
    143,617
 Rest of WorldAmericas
    
    
    Ireland
    
    
    Other
    
    
    Eliminations
    
    
    TotalYear ended December 31, 2006
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Revenue from external customers
    
    
    33,247
    
    
    
    55,665
    
    
    
    29,762
    
    
    
    
    
    
    
    118,674Inter-segment revenue
    
    
    21,161
    
    
    
    24,968
    
    
    
    9,679
    
    
    
    (55,808
    )
    
    
    Total revenue
    
    
    54,408
    
    
    
    80,633
    
    
    
    39,441
    
    
    
    (55,808
    )
    
    
    118,674
  77




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 b)
    
    The distribution of revenue by customers geographical area was as follows:
 December 31, 2008
    
    
    December 31, 2007
    
    
    December 31, 2006Revenue
    
    US$000
    
    
    US$000
    
    
    US$000Americas
    
    
    69,915
    
    
    
    68,481
    
    
    
    60,748Europe (including Ireland) *
    
    
    43,481
    
    
    
    43,631
    
    
    
    34,452Asia / Africa
    
    
    26,743
    
    
    
    31,505
    
    
    
    23,474140,139
    
    
    
    143,617
    
    
    
    118,674
 *
    
    Revenue for customers in Ireland is not disclosed separately due to the immateriality of these
revenues.
 c)
    
    The distribution of revenue by major product group was as follows:
 December 31, 2008
    
    
    December 31, 2007
    
    
    December 31, 2006Revenue
    
    US$000
    
    
    US$000
    
    
    US$000Clinical Laboratory
    
    
    121,143
    
    
    
    119,113
    
    
    
    103,395Point of care
    
    
    18,996
    
    
    
    24,504
    
    
    
    15,279140,139
    
    
    
    143,617
    
    
    
    118,674
 d)
    
    The distribution of segment results by geographical area was as follows:Year ended December 31, 2008
 Rest of WorldAmericas
    
    
    Ireland
    
    
    Other
    
    
    TotalUS$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Result before exceptional expenses
    
    
    807
    
    
    
    10,848
    
    
    
    (2,391
    )
    
    
    9,264Impairment expense (note 3)
    
    
    (17,645
    )
    
    
    (66,152
    )
    
    
    (1,996
    )
    
    
    (85,793
    )Restructuring expenses (note 3)
    
    
    (185
    )
    
    
    (1,904
    )
    
    
    
    
    
    
    (2,089
    )Result after exceptional expenses
    
    
    (17,023
    )
    
    
    (57,208
    )
    
    
    (4,387
    )
    
    
    (78,618
    )Unallocated expenses *
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (957
    )Operating loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (79,575
    )Net financing costs (note 4)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,095
    )Loss before tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (81,670
    )Income tax credit (note 9)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,892Loss for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (77,778
    )
 Year ended December 31, 2007
 Rest of WorldAmericas
    
    
    Ireland
    
    
    Other
    
    
    TotalUS$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Result before goodwill
impairment and restructuring
expenses
    
    
    15
    
    
    
    10,868
    
    
    
    447
    
    
    
    11,330Goodwill impairment (note 3)
    
    
    
    
    
    
    (19,156
    )
    
    
    
    
    
    
    (19,156
    )Restructuring expenses (note 3)
    
    
    (6,215
    )
    
    
    (11,961
    )
    
    
    (2,615
    )
    
    
    (20,791
    )Result after goodwill
impairment and restructuring
    
    
    (6,200
    )
    
    
    (20,249
    )
    
    
    (2,168
    )
    
    
    (28,617
    )Unallocated expenses *
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (755
    )Operating loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (29,372
    )Net financing costs (note 4)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2,691
    )Loss before tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (32,063
    )Income tax expense (note 9)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3,309
    )Loss for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (35,372
    )
  78




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 Year ended December 31, 2006
 Rest of WorldAmericas
    
    
    Ireland
    
    
    Other
    
    
    TotalUS$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Result
    
    
    (6,621
    )
    
    
    10,790
    
    
    
    (1,843
    )
    
    
    2,326Unallocated expenses *
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (385
    )Operating profit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,941Net financing costs (note 4)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,489
    )Profit before tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    452Income tax credit (note 9)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,824Profit for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,276
 *
    
    Unallocated expenses represent head office general and administration costs of the Group which
cannot be allocated to the results of any specific geographical area.e)
    
    The distribution of segment assets and segment liabilities by geographical area was as
follows:As at December 31, 2008
 Rest of WorldAmericas
    
    
    Ireland
    
    
    Other
    
    
    TotalUS$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Assets and liabilitiesSegment assets
    
    
    58,248
    
    
    
    128,907
    
    
    
    19,630
    
    
    
    206,785Impairment (note 3)
    
    
    (17,645
    )
    
    
    (66,152
    )
    
    
    (1,996
    )
    
    
    (85,793
    )Segment assets after goodwill impairment and
restructuring
    
    
    40,603
    
    
    
    62,755
    
    
    
    17,634
    
    
    
    120,992Unallocated assets:Income tax assets (current and deferred)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,333Cash and cash equivalents
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,184Total assets as reported in the Group balance sheet
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    129,509Segment liabilities before restructuring
    
    
    6,909
    
    
    
    10,451
    
    
    
    4,601
    
    
    
    21,961Impact of restructuring (note 22)
    
    
    6
    
    
    
    1,138
    
    
    
    
    
    
    
    1,144Segment liabilities after restructuring
    
    
    6,915
    
    
    
    11,589
    
    
    
    4,601
    
    
    
    23,105Unallocated liabilities:Income tax liabilities (current and deferred)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,378Interest-bearing loans and borrowings (current and
non-current)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    36,121Total liabilities as reported in the Group balance
sheet
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    63,604
  79




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 As at December 31, 2007
 Rest of WorldAmericas
    
    
    Ireland
    
    
    Other
    
    
    TotalUS$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Assets and liabilitiesSegment assets before goodwill impairment and
restructuring
    
    
    61,551
    
    
    
    154,285
    
    
    
    24,090
    
    
    
    239,926Goodwill impairment (note 3)
    
    
    
    
    
    
    (19,156
    )
    
    
    
    
    
    
    (19,156
    )Impact of restructuring
    
    
    (5,469
    )
    
    
    (10,626
    )
    
    
    (2,115
    )
    
    
    (18,210
    )Segment assets after goodwill impairment and
restructuring
    
    
    56,082
    
    
    
    124,503
    
    
    
    21,975
    
    
    
    202,560Unallocated assets:Income tax assets (current and deferred)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,719Cash and cash equivalents
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,700Total assets as reported in the Group balance sheet
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    215,979Segment liabilities before restructuring
    
    
    5,885
    
    
    
    15,387
    
    
    
    4,390
    
    
    
    25,662Impact of restructuring (note 22)
    
    
    808
    
    
    
    691
    
    
    
    517
    
    
    
    2,016Segment liabilities after restructuring
    
    
    6,693
    
    
    
    16,078
    
    
    
    4,907
    
    
    
    27,678Unallocated liabilities:Income tax liabilities (current and deferred)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9,323Interest-bearing loans and borrowings (current and
non-current)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    42,133Total liabilities as reported in the Group balance
sheet
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    79,134
 f)
    
    The distribution of long-lived assets, which are property, plant and equipment, goodwill and
intangible assets and other non-current assets (excluding deferred tax assets), by
geographical area was as follows:
 December 31, 2008
    
    
    December 31, 2007US$000
    
    
    US$000Rest of World  Ireland
    
    
    33,511
    
    
    
    95,675Rest of World  Other
    
    
    7,174
    
    
    
    10,029Americas
    
    
    10,572
    
    
    
    26,52951,257
    
    
    
    132,233
 g)
    
    The distribution of depreciation and amortisation by geographical area was as follows:
 December 31, 2008
    
    
    December 31, 2007
    
    
    December 31, 2006US$000
    
    
    US$000
    
    
    US$000Depreciation:Rest of World  Ireland
    
    
    1,799
    
    
    
    1,450
    
    
    
    1,336Rest of World  Other
    
    
    1,149
    
    
    
    1,537
    
    
    
    1,163Americas
    
    
    1,477
    
    
    
    1,354
    
    
    
    1,2374,425
    
    
    
    4,341
    
    
    
    3,736Amortisation:Rest of World  Ireland
    
    
    3,113
    
    
    
    2,971
    
    
    
    2,298Rest of World  Other
    
    
    206
    
    
    
    151
    
    
    
    104Americas
    
    
    297
    
    
    
    296
    
    
    
    2853,616
    
    
    
    3,418
    
    
    
    2,687
  80




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 h)
    
    The distribution of share-based payment expense by geographical area was as follows:
 December 31, 2008
    
    
    December 31, 2007
    
    
    December 31, 2006US$000
    
    
    US$000
    
    
    US$000Rest of World  Ireland
    
    
    996
    
    
    
    1,146
    
    
    
    922Rest of World  Other
    
    
    38
    
    
    
    37
    
    
    
    24Americas
    
    
    132
    
    
    
    220
    
    
    
    1951,166
    
    
    
    1,403
    
    
    
    1,141
 See note 19 for further information on share-based payments.i)
    
    The distribution of restructuring expenses (see note 3) by geographical area was as follows:
 December 31, 2008US$000Impairment:Rest of World  Ireland
    
    
    66,152Rest of World  Other
    
    
    1,996Americas
    
    
    17,64585,793Restructuring expenses:Rest of World  Ireland
    
    
    1,904Rest of World  Other
    
    
    Americas
    
    
    1852,089
 (see note 3).
   81




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 December 31, 2007US$000Impairment:Rest of World  Ireland
    
    
    19,156Rest of World  Other
    
    
    Americas
    
    
    19,156Restructuring expenses:Rest of World  Ireland
    
    
    11,961Rest of World  Other
    
    
    6,215Americas
    
    
    2,61520,791
  December 31, 2007US$000Inventory write offRest of World  Ireland
    
    
    4,146Rest of World  Other
    
    
    2,279Americas
    
    
    5,34711,772
  December 31, 2006US$000Inventory provisionRest of World  Ireland
    
    
    1,751Rest of World  Other
    
    
    2,362Americas
    
    
    1,6875,800
  82




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 j)
    
    The distribution of interest expense by geographical area was as follows:
 December 31, 2008
    
    
    December 31, 2007
    
    
    December 31, 2006US$000
    
    
    US$000
    
    
    US$000Rest of World  Ireland
    
    
    1,817
    
    
    
    2,595
    
    
    
    1,982Rest of World  Other
    
    
    8
    
    
    
    15
    
    
    
    12Americas
    
    
    335
    
    
    
    538
    
    
    
    6592,160
    
    
    
    3,148
    
    
    
    2,653
 k)
    
    The distribution of taxation credit / (expense) by geographical area was as follows:
 December 31, 2008
    
    
    December 31, 2007
    
    
    December 31, 2006US$000
    
    
    US$000
    
    
    US$000Rest of World  Ireland
    
    
    3,716
    
    
    
    531
    
    
    
    (1,156
    )Rest of World  Other
    
    
    9
    
    
    
    (662
    )
    
    
    975Americas
    
    
    167
    
    
    
    (3,178
    )
    
    
    3,0053,892
    
    
    
    (3,309
    )
    
    
    2,824
 l)
    
    During 2008, 2007 and 2006 there were no customers generating 10% or more of total
revenues.m)
    
    The distribution of capital expenditure, including expenditure on non-current assets in
business combinations, by geographical area was as follows:
 December 31, 2008
    
    
    December 31, 2007US$000
    
    
    US$000Rest of World  Ireland
    
    
    8,101
    
    
    
    14,742Rest of World  Other
    
    
    1,239
    
    
    
    3,130Americas
    
    
    3,507
    
    
    
    3,19912,847
    
    
    
    21,071
 3.
    
    IMPAIRMENT CHARGES AND RESTRUCTURING EXPENSES
     83




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
  Impairment
    
    
    Restructuring
    
    
    TotalUS$000
    
    
    US$000
    
    
    US$000Selling, general & administration expensesImpairment of PP&E (note 11)
    
    
    13,095
    
    
    
    
    
    
    
    13,095Impairment of goodwill and other
intangible assets (note 12)
    
    
    71,684
    
    
    
    
    
    
    
    71,684Impairment of prepayments (note 16)
    
    
    1,014
    
    
    
    
    
    
    
    1,014Employee termination payments (a)
    
    
    
    
    
    
    589
    
    
    
    589Directors compensation for loss of
office and share option
expense (b)
    
    
    
    
    
    
    1,465
    
    
    
    1,465Other restructuring expenses
    
    
    
    
    
    
    35
    
    
    
    35Total impairment loss and restructuring
expenses before tax
    
    
    85,793
    
    
    
    2,089
    
    
    
    87,882Income tax impact of impairment loss and
restructuring expenses (note 9)
    
    
    (4,536
    )
    
    
    (215
    )
    
    
    (4,751
    )Total impairment loss and restructuring
expenses after tax
    
    
    81,257
    
    
    
    (1,874
    )
    
    
    83,131
 (a)
    
    Under the restructuring plan announced in December 2008, the Groups workforce was reduced by
about 10%. The redundancies occurred in the Groups US, Irish and German operations. The total
redundancy costs amounted to US$589,000, of which an amount of US$156,000 is accrued at
December 31, 2008.(b)
    
    An expense of US$1,465,000 was recorded in the current year in relation to the resignation of
the former Chief Executive Officer, Brendan Farrell. Mr. Farrell left the company in October
2008. The expense comprises termination payments of US$1,283,000, of which US$988,000 is
included in accrued restructuring expenses at December 31, 2008, and an accelerated share
option expense of US$182,000.
   
    
    the rationalisation of the Haemostasis and Infectious Diseases reagent and
instrumentation product lines;
    
    the reorganisation of the US sales force;
    
    the closure of the Groups operation in Sweden;
    
    the streamlining of the Groups development activities and,
    
    a redundancy programme to reduce headcount across the Group.
  84




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
  ImpairmentLoss
    
    
    Restructuring
    
    
    TotalYear Ended 31 December 2007
    
    US$000
    
    
    US$000
    
    
    US$000Cost of salesInventory provision (a) (c)
    
    
    
    
    
    
    11,772
    
    
    
    11,772Termination payments (c) (d)
    
    
    
    
    
    
    953
    
    
    
    953
    
    
    
    12,725
    
    
    
    12,725Research & developmentWrite-off of capitalised development
and license costs (b)
    
    
    
    
    
    
    6,667
    
    
    
    6,667Termination payments (c) (d)
    
    
    
    
    
    
    240
    
    
    
    240
    
    
    
    6,907
    
    
    
    6,907Selling, general & administration expensesImpairment of goodwill (note 12)
    
    
    19,156
    
    
    
    
    
    
    
    19,156Termination payments (c) (d)
    
    
    
    
    
    
    842
    
    
    
    842Lease obligation provision (c)
    
    
    
    
    
    
    116
    
    
    
    116Other
    
    
    
    
    
    
    201
    
    
    
    20119,156
    
    
    
    1,159
    
    
    
    20,315Total inventory write off, restructuring
expenses and goodwill impairment before
tax
    
    
    19,156
    
    
    
    20,791
    
    
    
    39,947Income tax impact of inventory write off,
restructuring expenses and goodwill
impairment (note 9)
    
    
    
    (1,584
    )
    
    
    (1,584
    )Total inventory write off, restructuring
expenses and goodwill impairment after
tax
    
    
    19,156
    
    
    
    19,207
    
    
    
    38,363
  (a)
    
    Under the 2007 restructuring plan, Trinity Biotech undertook to reduce the number of
products and instruments within the two key product lines of Haemostasis and Infectious
Diseases. The purpose of the rationalisation was to reduce complexity in the business, to
improve selling and operating efficiencies and to eliminate low revenue generating products.
As a result, the Group recognised US$11,772,000, including US$147,000 in respect of the
closure of the Swedish operation (see note (c)), for inventory written off relating to those
Haemostasis and Infectious Diseases products and instruments being rationalised for the year
ended December 31, 2007.(b)
    
    The Group decided to terminate or suspend a number of product development projects, which
resulted in a write-off of capitalised development and license costs for the year ended
December 31, 2007 of US$6,667,000.
   85




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
    (c)
    
    As part of the restructuring announced in December 2007, Trinity Biotech decided to close
its manufacturing facility located in Umea, Sweden. This facility manufactured a portion of
the Groups Haemostasis products and was acquired as part of the Biopool AB acquisition in
2001. The manufacture of these products was transferred to the Groups Irish and US
facilities during 2008. As part of the closure of this facility, the Group recognised an
inventory write off of US$147,000 and a write down of property, plant and equipment of
US$42,000. A total of US$448,000 was accrued at December 31, 2007 which consisted of
termination payments of US$332,000, and lease obligations of US$116,000.(d)
    
    The reduction in the number of products, the more focused R&D approach and the closure of
the Swedish operation enabled the Group to reduce its workforce and consequently total
redundancy costs of US$1,470,000 were accrued for at December 31, 2007 (see note 22).
 4.
    
    FINANCIAL INCOME AND EXPENSES
 December 31, 2008
    
    
    December 31, 2007
    
    
    December 31, 2006Note
    
    
    US$000
    
    
    US$000
    
    
    US$000Financial income:Interest income
    
    
    
    
    
    
    65
    
    
    
    457
    
    
    
    1,164Financial expense:Finance lease interest
    
    
    
    
    
    
    (123
    )
    
    
    (65
    )
    
    
    (27
    )Interest payable on
interest bearing loans
and borrowings
    
    
    20
    
    
    
    (1,912
    )
    
    
    (2,834
    )
    
    
    (2,167
    )Convertible note interest
    
    
    21
    
    
    
    
    
    
    
    
    
    
    
    (278
    )Other interest expense
    
    
    
    
    
    
    (125
    )
    
    
    (249
    )
    
    
    (181
    )(2,160
    )
    
    
    (3,148
    )
    
    
    (2,653
    )Net Financing Costs
    
    
    
    
    
    
    (2,095
    )
    
    
    (2,691
    )
    
    
    (1,489
    )
   86




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 5.
    
    OTHER OPERATING INCOME
 December 31, 2008
    
    
    December 31, 2007
    
    
    December 31, 2006US$000
    
    
    US$000
    
    
    US$000Rental income from premises
    
    
    237
    
    
    
    233
    
    
    
    204Employment / training grants
    
    
    936
    
    
    
    180
    
    
    
    711,173
    
    
    
    413
    
    
    
    275
 6.
    
    (LOSS)/ PROFIT BEFORE TAX
  December 31, 2008
    
    
    December 31, 2007
    
    
    December 31, 2006US$000
    
    
    US$000
    
    
    US$000Directors emoluments
(including non- executive
directors):Remuneration
    
    
    1,617
    
    
    
    2,370
    
    
    
    2,213Pension
    
    
    241
    
    
    
    147
    
    
    
    119Compensation for loss of office
    
    
    1,283
    
    
    
    
    
    
    
    Share based payments
    
    
    776
    
    
    
    920
    
    
    
    732Other
    
    
    44
    
    
    
    
    
    
    
    Auditors remunerationAudit fees
    
    
    809
    
    
    
    1,544
    
    
    
    629Non audit fees
    
    
    31
    
    
    
    77
    
    
    
    50Depreciation  leased assets
    
    
    372
    
    
    
    260
    
    
    
    120Depreciation  owned assets
    
    
    4,053
    
    
    
    4,081
    
    
    
    3,616Amortisation
    
    
    3,616
    
    
    
    3,418
    
    
    
    2,687(Profit) / loss on the disposal
of property, plant and
equipment
    
    
    (682
    )
    
    
    16
    
    
    
    (2
    )Net foreign exchange differences
    
    
    (224
    )
    
    
    68
    
    
    
    (240
    )Operating lease rentals:Plant and machinery
    
    
    31
    
    
    
    38
    
    
    
    85Land and buildings
    
    
    4,421
    
    
    
    3,798
    
    
    
    2,838Other equipment
    
    
    437
    
    
    
    407
    
    
    
    240
 7.
    
    PERSONNEL EXPENSES
 December 31, 2008
    
    
    December 31, 2007
    
    
    December 31, 2006US$000
    
    
    US$000
    
    
    US$000Wages and salaries
    
    
    48,755
    
    
    
    48,385
    
    
    
    42,113Social welfare costs
    
    
    5,338
    
    
    
    5,118
    
    
    
    4,407Pension costs
    
    
    1,442
    
    
    
    1,388
    
    
    
    987Share-based payments
    
    
    1,166
    
    
    
    1,403
    
    
    
    1,14156,701
    
    
    
    56,294
    
    
    
    48,648
    87




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
  December 31,
    
    
    December 31,
    
    
    December 31,2008
    
    
    2007
    
    
    2006Research and development
    
    
    57
    
    
    
    51
    
    
    
    44Administration and sales
    
    
    261
    
    
    
    268
    
    
    
    246Manufacturing and quality
    
    
    439
    
    
    
    483
    
    
    
    504757
    
    
    
    802
    
    
    
    794
 8.
    
    PENSION SCHEME
   88




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 9.
    
    INCOME TAX (CREDIT) / EXPENSE(a)
    
    The charge for tax based on the (loss) / profit comprises:
 December 31, 2008
    
    
    December 31, 2007
    
    
    December 31, 2006US$000
    
    
    US$000
    
    
    US$000Current tax expenseCorporation tax at 12.5%
    
    
    58
    
    
    
    60
    
    
    
    519Manufacturing relief
    
    
    
    
    
    
    
    
    
    
    (49
    )58
    
    
    
    60
    
    
    
    470Overseas tax (a)
    
    
    35
    
    
    
    114
    
    
    
    25Adjustment in respect of prior years (b)
    
    
    (33
    )
    
    
    (67
    )
    
    
    (290
    )Total current tax expense
    
    
    60
    
    
    
    107
    
    
    
    205Deferred tax (credit) / expense(c)Origination and reversal of temporary
differences (see note 13)
    
    
    (3,858
    )
    
    
    (1,042
    )
    
    
    (107
    )Origination and reversal of net
operating losses (see note 13)
    
    
    (94
    )
    
    
    4,244
    
    
    
    (2,922
    )Total deferred tax (credit) / expense
    
    
    (3,952
    )
    
    
    3,202
    
    
    
    (3,029
    )Total income tax (credit) / charge in
income statement (d)
    
    
    (3,892
    )
    
    
    3,309
    
    
    
    (2,824
    )
 (a)
    
    The overseas tax charge in 2008, 2007 and 2006 relates primarily to US State Taxes.(b)
    
    The credit in 2008 relates primarily to the release of a provision for US State taxes at
December 31, 2007 which was not considered to be required. The credit in 2007 principally arises
in respect of the finalisation of a claim for Irish Research and Development Tax Credits (R&D tax
credits) in respect of the year ended December 31, 2006. The credit in 2006 of US$290,000 relates
primarily to the release of US$200,000 that had been provided at December 31, 2005 which was not
considered to be required at December 31, 2006. The remaining US$90,000 principally arises in
respect of the finalisation of a claim for R&D tax credits in respect of the year ended December
31, 2005.(c)
    
    In 2008 there was a deferred tax credit of US$3,744,000 (2007: US$538,000) recognised in
respect of Ireland. In 2008 there was a deferred tax credit of US$208,000 (2007: US$3,740,000
expense) recognised in respect of overseas tax jurisdictions.(d)
    
    The tax credit in 2008 includes a deferred tax credit of US$4,536,000 relating to the
impairment and a deferred tax credit of US$215,000 relating to the restructuring (see note 3). The
income tax charge in 2007 includes a deferred tax credit of US$1,584,000 relating to the
restructuring (see note 3). The income tax charge in 2007 also includes a tax expense of
US$3,780,000 relating to the derecognition of deferred tax assets previously recognised, which
primarily arose on tax losses carried forward in the Groups US operations. The derecognition of
these deferred tax assets was considered appropriate in light of the increased tax losses caused by
the restructuring and uncertainty over the timing of the utilisation of the tax losses. December 31, 2008
    
    
    December 31, 2007
    
    
    December 31, 2006Effective tax rate
    
    US$000
    
    
    US$000
    
    
    US$000(Loss) / profit before taxation
    
    
    (81,670
    )
    
    
    (32,063
    )
    
    
    452As a percentage of (loss) / profit before tax:Current tax
    
    
    0.07
    %
    
    
    (0.34
    %)
    
    
    46.32
    %Total (current and deferred)
    
    
    4.76
    %
    
    
    (10.32
    %)
    
    
    (625.44
    )%
  89




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
  December 31, 2008
    
    
    December 31, 2007
    
    
    December 31, 2006Irish corporation tax
    
    
    12.50
    %
    
    
    12.50
    %
    
    
    12.50
    %Manufacturing relief
    
    
    
    
    
    
    
    
    
    
    (10.76
    %)Adjustments in respect of prior years
    
    
    0.04
    %
    
    
    0.21
    %
    
    
    (64.15
    %)Effect of tax rates on overseas earnings
    
    
    1.67
    %
    
    
    5.08
    %
    
    
    (529.98
    %)Effect of non deductible expenses
    
    
    (6.48
    %)
    
    
    (8.24
    %)
    
    
    43.90
    %Effect of current year net operating
losses and temporary differences for
which no deferred tax asset was
recognised
    
    
    (3.21
    %)
    
    
    (9.00
    %)
    
    
    Effect of derecognition of deferred tax
assets relating to loss carryforwards
and temporary differences at the start
of the period
    
    
    
    
    
    
    (11.79
    %)
    
    
    Effect of benefit of loss carryforwards
    
    
    
    
    
    
    
    
    
    
    (25.18
    %)Effect of Irish income taxable at higher tax rate
    
    
    (0.05
    %)
    
    
    (0.13
    %)
    
    
    2.44
    %R&D tax credit
    
    
    0.29
    %
    
    
    1.05
    %
    
    
    (54.21
    %)Effective tax rate
    
    
    4.76
    %
    
    
    (10.32
    %)
    
    
    (625.44
    %)
 Deferred tax recognised directly in equity
 December 31, 2008
    
    
    December 31, 2007
    
    
    December 31, 2006US$000
    
    
    US$000
    
    
    US$000Relating to forward
contracts as hedged
instruments
    
    
    26
    
    
    
    23
    
    
    
    426
    
    
    
    23
    
    
    
    4
 (b)
    
    The distribution of (loss)/profit before taxes by geographical area was as follows:
 December 31, 2008
    
    
    December 31, 2007
    
    
    December 31, 2006US$000
    
    
    US$000
    
    
    US$000Rest of World  Ireland
    
    
    (59,917
    )
    
    
    (23,143
    )
    
    
    9,585Rest of World  Other
    
    
    (4,395
    )
    
    
    (2,182
    )
    
    
    (1,855
    )Americas
    
    
    (17,358
    )
    
    
    (6,738
    )
    
    
    (7,278
    )(81,670
    )
    
    
    (32,063
    )
    
    
    452
 (c)
    
    At December 31, 2008, the Group had unutilised net operating losses as follows:
 December 31, 2008
    
    
    December 31, 2007
    
    
    December 31, 2006US$000
    
    
    US$000
    
    
    US$000USA
    
    
    10,167
    
    
    
    9,158
    
    
    
    8,138France
    
    
    1,812
    
    
    
    1,085
    
    
    
    264Germany
    
    
    3,245
    
    
    
    3,540
    
    
    
    2,320Ireland
    
    
    290
    
    
    
    290
    
    
    
    290UK
    
    
    197
    
    
    
    160
    
    
    
    58015,711
    
    
    
    14,233
    
    
    
    11,592
   90




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
   December 31, 2008
    
    
    December 31, 2007
    
    
    December 31, 2006US$000
    
    
    US$000
    
    
    US$ 000USA  unused tax losses
    
    
    4,126
    
    
    
    3,717
    
    
    
    Germany  unused tax losses
    
    
    866
    
    
    
    945
    
    
    
    France  unused tax losses
    
    
    598
    
    
    
    290
    
    
    
    87Ireland  unused tax losses
    
    
    73
    
    
    
    73
    
    
    
    USA  unused tax credits
    
    
    346
    
    
    
    314
    
    
    
    185USAdeductible temporary
differences
    
    
    3,464
    
    
    
    1,600Unrecognised Deferred Tax Asset
    
    
    9,473
    
    
    
    6,939
    
    
    
    272
  (d)
    
    There are no income tax consequences for the Company attaching to the payment of dividends by
Trinity Biotech plc to shareholders of the Company.
  91




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 10.
    
    (LOSS)/ EARNINGS PER SHARE
 Basic (loss)/ earnings per ordinary share
  December 31,
    
    
    December 31,
    
    
    December 31,2008
    
    
    2007
    
    
    2006A ordinary shares
    
    
    79,994,075
    
    
    
    74,636,579
    
    
    
    69,293,753B ordinary shares (multiplied by 2)
    
    
    1,400,000
    
    
    
    1,400,000
    
    
    
    1,400,000Basic (loss)/ earnings per share denominator
    
    
    81,394,075
    
    
    
    76,036,579
    
    
    
    70,693,753Reconciliation to weighted average earnings per
share denominator:Number of A ordinary shares at January 1 (note 18)
    
    
    74,756,765
    
    
    
    73,601,497
    
    
    
    60,041,521Number of B ordinary shares at January 1
(multiplied by 2)
    
    
    1,400,000
    
    
    
    1,400,000
    
    
    
    1,400,000Weighted average number of shares issued during
the year
    
    
    5,237,310
    
    
    
    1,035,082
    
    
    
    9,252,232Basic (loss)/ earnings per share denominator
    
    
    81,394,075
    
    
    
    76,036,579
    
    
    
    70,693,753
  Diluted (loss)/ earnings per ordinary share
   December 31,
    
    
    December 31,
    
    
    December 31,2008
    
    
    2007
    
    
    2006Basic (loss)/ earnings per share denominator (see above)
    
    
    81,394,075
    
    
    
    76,036,579
    
    
    
    70,693,753Issuable on exercise of options and warrants
    
    
    
    
    
    
    
    
    
    
    1,431,987Diluted (loss)/ earnings per share denominator *
    
    
    81,394,075
    
    
    
    76,036,579
    
    
    
    72,125,740
 *
    
    At December 31, 2008, the number of shares issuable on the exercise of options and warrants is
not dilutive. At December 31, 2007, the number of shares issuable on the exercise of options and
warrants was anti-dilutive and
hence the diluted (loss)/ earnings per share was calculated excluding the number of shares
issuable on the exercise of options and warrants. If the number of shares issuable on the exercise
of options and warrants had not been anti-dilutive, 1,854,825 shares issuable on the exercise of
options and warrants would have been included in the diluted (loss)/ earnings per share
denominator in 2007. The after tax effect of the interest saving on convertible notes is nil in
2007 as the final interest payment on the convertibles notes was paid on January 2, 2007.  92




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
  Earnings per ADS
   December 31,
    
    
    December 31,
    
    
    December 31,2008
    
    
    2007
    
    
    2006A ordinary shares  ADS
    
    
    19,998,519
    
    
    
    18,659,144
    
    
    
    17,323,438B ordinary shares  ADS
    
    
    350,000
    
    
    
    350,000
    
    
    
    350,000Basic (loss)/ earnings per share denominator
    
    
    20,348,519
    
    
    
    19,009,144
    
    
    
    17,673,438
   December 31, 
2008
    
    
    December 31, 
2007
    
    
    December 31, 
2006Basic (loss)/ earnings per share denominator
(see above)
    
    
    20,348,519
    
    
    
    19,009,144
    
    
    
    17,673,438Issuable on exercise of options and warrants
    
    
    
    
    
    
    
    
    
    
    357,997Issuable on conversion of convertible notes
    
    
    
    
    
    
    
    
    
    
    Diluted (loss)/ earnings per share denominator *
    
    
    20,348,519
    
    
    
    19,009,144
    
    
    
    18,031,435
 *
    
    At December 31, 2008, the number of ADSs issuable on the exercise of options and warrants is not
dilutive. At December 31, 2007, the number of ADSs issuable on the exercise of options and
warrants was anti-dilutive and hence the diluted (loss)/ earnings per share was calculated
excluding the number of ADSs issuable on the exercise of options and warrants. If the number of
ADSs issuable on the exercise of options and warrants had not been anti-dilutive, 463,706 ADSs
issuable on the exercise of options and warrants would have been included in the diluted (loss)/
earnings per ADS denominator in 2007.   93




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 11.
    
    PROPERTY, PLANT AND EQUIPMENT
 Computers,Freehold land
    
    
    Leasehold
    
    
    fixtures and
    
    
    Plant andand buildings
    
    
    improvements
    
    
    fittings
    
    
    equipment
    
    
    TotalUS$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000CostAt January 1, 2007
    
    
    5,439
    
    
    
    3,407
    
    
    
    5,022
    
    
    
    22,448
    
    
    
    36,316Acquisitions through
business combinations
(note 26)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    23
    
    
    
    23Other additions
    
    
    15
    
    
    
    266
    
    
    
    549
    
    
    
    7,856
    
    
    
    8,686Disposals / retirements
    
    
    
    
    
    
    
    
    
    
    (52
    )
    
    
    (1,107
    )
    
    
    (1,159
    )Exchange adjustments
    
    
    382
    
    
    
    2
    
    
    
    9
    
    
    
    446
    
    
    
    839At December 31, 2007
    
    
    5,836
    
    
    
    3,675
    
    
    
    5,528
    
    
    
    29,666
    
    
    
    44,705At January 1, 2008
    
    
    5,836
    
    
    
    3,675
    
    
    
    5,528
    
    
    
    29,666
    
    
    
    44,705Additions
    
    
    34
    
    
    
    41
    
    
    
    313
    
    
    
    3,551
    
    
    
    3,939Disposals / retirements
    
    
    
    
    
    
    (34
    )
    
    
    (126
    )
    
    
    (1,642
    )
    
    
    (1,802
    )Exchange adjustments
    
    
    (154
    )
    
    
    
    
    
    
    (9
    )
    
    
    (185
    )
    
    
    (348
    )At December 31, 2008
    
    
    5,716
    
    
    
    3,682
    
    
    
    5,706
    
    
    
    31,390
    
    
    
    46,494Accumulated
depreciation and
impairment lossesAt January 1, 2007
    
    
    (818
    )
    
    
    (1,317
    )
    
    
    (2,614
    )
    
    
    (9,312
    )
    
    
    (14,061
    )Charge for the year
    
    
    (119
    )
    
    
    (347
    )
    
    
    (799
    )
    
    
    (3,076
    )
    
    
    (4,341
    )Disposals / retirements
    
    
    
    
    
    
    
    
    
    
    52
    
    
    
    430
    
    
    
    482Restructuring write off
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (133
    )
    
    
    (133
    )Exchange adjustments
    
    
    (33
    )
    
    
    (2
    )
    
    
    (1
    )
    
    
    (207
    )
    
    
    (243
    )At December 31, 2007
    
    
    (970
    )
    
    
    (1,666
    )
    
    
    (3,362
    )
    
    
    (12,298
    )
    
    
    (18,296
    )At January 1, 2008
    
    
    (970
    )
    
    
    (1,666
    )
    
    
    (3,362
    )
    
    
    (12,298
    )
    
    
    (18,296
    )Charge for the year
    
    
    (124
    )
    
    
    (381
    )
    
    
    (621
    )
    
    
    (3,299
    )
    
    
    (4,425
    )Impairment loss
    
    
    
    
    
    
    (1,149
    )
    
    
    (1,185
    )
    
    
    (10,761
    )
    
    
    (13,095
    )Disposals / retirements
    
    
    
    
    
    
    35
    
    
    
    81
    
    
    
    944
    
    
    
    1,060Exchange adjustments
    
    
    17
    
    
    
    
    
    
    
    6
    
    
    
    94
    
    
    
    117At December 31, 2008
    
    
    (1,077
    )
    
    
    (3,161
    )
    
    
    (5,081
    )
    
    
    (25,320
    )
    
    
    (34,639
    )Carrying amountsAt December 31, 2008
    
    
    4,639
    
    
    
    521
    
    
    
    625
    
    
    
    6,070
    
    
    
    11,855At December 31, 2007
    
    
    4,866
    
    
    
    2,009
    
    
    
    2,166
    
    
    
    17,368
    
    
    
    26,409
   94




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
  US$000Trinity Biotech Manufacturing Limited
    
    
    9,709Biopool US Inc
    
    
    2,821Primus Corporation Inc
    
    
    377Trinity Biotech France SARL
    
    
    179Trinity Biotech (UK Sales) Limited
    
    
    913,095
 Assets held under operating leases (where the Company is the lessor)
   Assets held under finance leases
  Freehold
    
    
    
    
    
    
    Computers,land and
    
    
    Leasehold
    
    
    fixtures and
    
    
    Plant andbuildings
    
    
    improvements
    
    
    fittings
    
    
    equipment
    
    
    TotalAt December 31, 2008
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Depreciation charge
    
    
    
    
    
    
    43
    
    
    
    46
    
    
    
    283
    
    
    
    372Impairment charge
    
    
    
    
    
    
    168
    
    
    
    280
    
    
    
    1,539
    
    
    
    1,987Carrying valueAt December 31, 2008
    
    
    
    
    
    
    33
    
    
    
    55
    
    
    
    449
    
    
    
    537
 Freehold
    
    
    
    
    
    
    Computers,land and
    
    
    Leasehold
    
    
    fixtures and
    
    
    Plant andbuildings
    
    
    improvements
    
    
    fittings
    
    
    equipment
    
    
    TotalAt December 31, 2007
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Depreciation charge
    
    
    
    
    
    
    43
    
    
    
    46
    
    
    
    171
    
    
    
    260Carrying valueAt December 31, 2007
    
    
    
    
    
    
    244
    
    
    
    382
    
    
    
    2,287
    
    
    
    2,913
 Property, plant and equipment under construction
   95




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 12.
    
    GOODWILL AND INTANGIBLE ASSETS
  Development
    
    
    Patents andGoodwill
    
    
    costs
    
    
    licences
    
    
    Other
    
    
    TotalUS$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000CostAt January 1, 2007
    
    
    76,617
    
    
    
    18,240
    
    
    
    10,093
    
    
    
    23,719
    
    
    
    128,669Acquisitions, through business
combinations (note 26)
    
    
    2,982
    
    
    
    
    
    
    
    
    
    
    
    1,500
    
    
    
    4,482Other additions
    
    
    
    
    
    
    7,508
    
    
    
    
    
    
    
    372
    
    
    
    7,880Exchange adjustments
    
    
    
    
    
    
    64
    
    
    
    
    
    
    
    11
    
    
    
    75At December 31, 2007
    
    
    79,599
    
    
    
    25,812
    
    
    
    10,093
    
    
    
    25,602
    
    
    
    141,106At January 1, 2008
    
    
    79,599
    
    
    
    25,812
    
    
    
    10,093
    
    
    
    25,602
    
    
    
    141,106Additions
    
    
    
    
    
    
    8,426
    
    
    
    
    
    
    
    482
    
    
    
    8,908Exchange adjustments
    
    
    
    
    
    
    (26
    )
    
    
    
    
    
    
    (6
    )
    
    
    (32
    )At December 31, 2008
    
    
    79,599
    
    
    
    34,212
    
    
    
    10,093
    
    
    
    26,078
    
    
    
    149,982Accumulated amortisation and
Impairment lossesAt January 1, 2007
    
    
    
    
    
    
    (950
    )
    
    
    (2,123
    )
    
    
    (3,828
    )
    
    
    (6,901
    )Charge for the year
    
    
    
    
    
    
    (547
    )
    
    
    (797
    )
    
    
    (2,074
    )
    
    
    (3,418
    )Goodwill impairment
    
    
    (19,156
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (19,156
    )Restructuring write off (note 3)
    
    
    
    
    
    
    (5,134
    )
    
    
    (1,533
    )
    
    
    
    
    
    
    (6,667
    )Exchange adjustments
    
    
    
    
    
    
    (31
    )
    
    
    
    
    
    
    (5
    )
    
    
    (36
    )At December 31, 2007
    
    
    (19,156
    )
    
    
    (6,662
    )
    
    
    (4,453
    )
    
    
    (5,907
    )
    
    
    (36,178
    )At January 1, 2008
    
    
    (19,156
    )
    
    
    (6,662
    )
    
    
    (4,453
    )
    
    
    (5,907
    )
    
    
    (36,178
    )Charge for the year
    
    
    
    
    
    
    (750
    )
    
    
    (627
    )
    
    
    (2,239
    )
    
    
    (3,616
    )Impairment loss
    
    
    (40,390
    )
    
    
    (21,480
    )
    
    
    (3,728
    )
    
    
    (6,086
    )
    
    
    (71,684
    )Exchange adjustments
    
    
    
    
    
    
    18
    
    
    
    
    
    
    
    3
    
    
    
    21At December 31, 2008
    
    
    (59,546
    )
    
    
    (28,874
    )
    
    
    (8,808
    )
    
    
    (14,229
    )
    
    
    (111,457
    )Carrying amountsAt December 31, 2008
    
    
    20,053
    
    
    
    5,338
    
    
    
    1,285
    
    
    
    11,849
    
    
    
    38,525At December 31, 2007
    
    
    60,443
    
    
    
    19,150
    
    
    
    5,640
    
    
    
    19,695
    
    
    
    104,928
     96




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
  December 31, 2008
    
    
    December 31, 2007US$000
    
    
    US$000Fitzgerald trade name
    
    
    970
    
    
    
    970RDI trade name
    
    
    560
    
    
    
    560Primus trade name
    
    
    418
    
    
    
    1,8701,948
    
    
    
    3,400
  Impairment testing for intangibles including goodwill and indefinite lived assets
    Impairment of Assets
  US$000Trinity Biotech Manufacturing Limited
    
    
    57,889Primus Corporation Inc.
    
    
    13,988Biopool US
Inc.
    
    
    8,649Trinity Biotech (UK Sales) Limited
    
    
    3,036Trinity Biotech France SARL
    
    
    1,973Clark
Laboratories Inc.
    
    
    258Total impairment loss
    
    
    85,793
  97




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
  US$000Goodwill and other intangible assets
    
    
    71,684Property, plant and equipment (see note 11)
    
    
    13,095Prepayments (see note 16)
    
    
    1,014Total impairment loss
    
    
    85,793
  US$000bioMerieux
    
    
    19,886Primus Corporation
    
    
    7,688Biopool
    
    
    4,486Sigma Clinical Chemistry
    
    
    4,005Adaltis
    
    
    1,952Sterilab Services
    
    
    905Nephrotek SARL
    
    
    677Other
    
    
    791Total impairment loss allocated to goodwill
    
    
    40,390
  
    
    An increase in impairment of US$5.3 million in the event of a 10% decrease in the growth
in revenues.
    
    A decrease in impairment of US$5.0 million in the event of a 10% increase in the growth
in revenues.
  
    
    An increase in impairment of US$4.8 million in the event of a 10% increase in the
discount rate.
    
    A decrease in impairment of US$4.7 million in the event of a 10% decrease in the
discount rate.
 Impairment loss arising on annual impairment review in 2007
  December 31, 2007US$000Bartels
    
    
    7,340Cambridge
    
    
    3,005Ortho
    
    
    783Dade
    
    
    8,02819,156
  98




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
  Impairment loss on bioMerieux technology asset
   99




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 13.
    
    DEFERRED TAX ASSETS AND LIABILITIES
 Recognised deferred tax assets and liabilities
  Assets
    
    
    Liabilities
    
    
    Net2008
    
    
    2007
    
    
    2008
    
    
    2007
    
    
    2008
    
    
    2007US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Property, plant and equipment
    
    
    1,285
    
    
    
    15
    
    
    
    (885
    )
    
    
    (1,618
    )
    
    
    400
    
    
    
    (1,603
    )Intangible assets
    
    
    
    
    
    
    
    
    
    
    (3,069
    )
    
    
    (6,998
    )
    
    
    (3,069
    )
    
    
    (6,998
    )Inventories
    
    
    1,214
    
    
    
    1,733
    
    
    
    
    
    
    
    
    
    
    
    1,214
    
    
    
    1,733Provisions
    
    
    255
    
    
    
    1,520
    
    
    
    
    
    
    
    
    
    
    
    255
    
    
    
    1,520Other items
    
    
    
    
    
    
    466
    
    
    
    (419
    )
    
    
    (621
    )
    
    
    (419
    )
    
    
    (155
    )Tax value of loss carryforwards
recognised
    
    
    297
    
    
    
    203
    
    
    
    
    
    
    
    
    
    
    
    297
    
    
    
    203Deferred tax assets/(liabilities)
    
    
    3,051
    
    
    
    3,937
    
    
    
    (4,373
    )
    
    
    (9,237
    )
    
    
    (1,322
    )
    
    
    (5,300
    )
     Unrecognised deferred tax assets
  December 31, 2008
    
    
    December 31, 2007US$000
    
    
    US$000Deductible temporary differences
    
    
    8,536
    
    
    
    3,944Capital losses
    
    
    6,138
    
    
    
    6,138US state credit carryforwards
    
    
    346
    
    
    
    314Net operating losses
    
    
    15,248
    
    
    
    13,56030,268
    
    
    
    23,956
   100




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
      Unrecognised deferred tax liabilities
  Movement in temporary differences during the year
 Balance
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    BalanceJanuary, 1
    
    
    Recognised in
    
    
    Recognised on
    
    
    Recognised
    
    
    December 31,2008
    
    
    income
    
    
    acquisitions
    
    
    in equity
    
    
    2008US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Property, plant and equipment
    
    
    (1,603
    )
    
    
    2,003
    
    
    
    
    
    
    
    
    
    
    
    400Intangible assets
    
    
    (6,998
    )
    
    
    3,929
    
    
    
    
    
    
    
    
    
    
    
    (3,069
    )Inventories
    
    
    1,733
    
    
    
    (519
    )
    
    
    
    
    
    
    
    
    
    
    1,214Provisions
    
    
    1,520
    
    
    
    (1,265
    )
    
    
    
    
    
    
    
    
    
    
    255Other items
    
    
    (155
    )
    
    
    (290
    )
    
    
    
    
    
    
    26
    
    
    
    (419
    )Tax value of loss
carryforwards recognised
    
    
    203
    
    
    
    94
    
    
    
    
    
    
    
    
    
    
    
    297(5,300
    )
    
    
    3,952
    
    
    
    
    
    
    
    26
    
    
    
    (1,322
    )
 Balance
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    BalanceJanuary, 1
    
    
    Recognised in
    
    
    Recognised on
    
    
    Recognised
    
    
    December 31,2007
    
    
    income
    
    
    acquisitions
    
    
    in equity
    
    
    2007US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Property, plant and equipment
    
    
    (1,723
    )
    
    
    120
    
    
    
    
    
    
    
    
    
    
    
    (1,603
    )Intangible assets
    
    
    (6,285
    )
    
    
    (428
    )
    
    
    (285
    )
    
    
    
    
    
    
    (6,998
    )Inventories
    
    
    1,886
    
    
    
    (153
    )
    
    
    
    
    
    
    
    
    
    
    1,733Provisions
    
    
    1,055
    
    
    
    465
    
    
    
    
    
    
    
    
    
    
    
    1,520Other items
    
    
    (1,170
    )
    
    
    1,038
    
    
    
    
    
    
    
    (23
    )
    
    
    (155
    )Tax value of loss
carryforwards recognised
    
    
    4,447
    
    
    
    (4,244
    )
    
    
    
    
    
    
    
    
    
    
    203(1,790
    )
    
    
    (3,202
    )
    
    
    (285
    )
    
    
    (23
    )
    
    
    (5,300
    )
  101




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 14.
    
    OTHER ASSETS
 December 31, 2008
    
    
    December 31, 2007US$000
    
    
    US$000Finance lease receivables (see note 16)
    
    
    776
    
    
    
    773Other assets
    
    
    101
    
    
    
    123877
    
    
    
    896
  15.
    
    INVENTORIES
 December 31, 2008
    
    
    December 31, 2007US$000
    
    
    US$000Raw materials and consumables
    
    
    11,245
    
    
    
    10,849Work-in-progress
    
    
    11,033
    
    
    
    9,243Finished goods
    
    
    20,039
    
    
    
    24,32842,317
    
    
    
    44,420
   December 31,
    
    
    December 31,
    
    
    December 31,2008
    
    
    2007
    
    
    2006US$000
    
    
    US$000
    
    
    US$000Opening provision at January 1
    
    
    18,234
    
    
    
    7,284
    
    
    
    3,654Charged during the year
    
    
    1,570
    
    
    
    13,856
    
    
    
    6,280Utilised during the year
    
    
    (2,182
    )
    
    
    (2,323
    )
    
    
    (2,511
    )Released during the year
    
    
    (1,161
    )
    
    
    (583
    )
    
    
    (139
    )Closing provision at December 31
    
    
    16,461
    
    
    
    18,234
    
    
    
    7,284
  102




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 16.
    
    TRADE AND OTHER RECEIVABLES
 December 31, 2008
    
    
    December 31, 2007US$000
    
    
    US$000Trade receivables, net of impairment losses
    
    
    24,962
    
    
    
    23,104Prepayments*
    
    
    736
    
    
    
    1,665Value added tax
    
    
    195
    
    
    
    108Finance lease receivables
    
    
    439
    
    
    
    388Other receivables
    
    
    1,086
    
    
    
    41827,418
    
    
    
    25,683
  *
    
    Prepayments are shown net of amounts written down as part of the impairment review of
US$1,014,000 (see note 3). Leases as lessor
 (i) Finance lease commitments  Group as lessor
  December 31, 2008US$000MinimumGross
    
    
    Unearned
    
    
    paymentsinvestment
    
    
    income
    
    
    receivableLess than one year
    
    
    764
    
    
    
    325
    
    
    
    439Between one and five years (note 14)
    
    
    1,394
    
    
    
    618
    
    
    
    7762,158
    
    
    
    943
    
    
    
    1,215
 December 31, 2007US$000MinimumGross
    
    
    Unearned
    
    
    paymentsinvestment
    
    
    income
    
    
    receivableLess than one year
    
    
    673
    
    
    
    285
    
    
    
    388Between one and five years (note 14)
    
    
    1,448
    
    
    
    675
    
    
    
    7732,121
    
    
    
    960
    
    
    
    1,161
  (ii) Operating lease commitments  Group as lessor
   103




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
  December 31, 2008US$000Land andbuildings
    
    
    Instruments
    
    
    TotalLess than one year
    
    
    223
    
    
    
    1,160
    
    
    
    1,383Between one and five years
    
    
    892
    
    
    
    1,552
    
    
    
    2,444More than five years
    
    
    613
    
    
    
    
    
    
    
    6131,728
    
    
    
    2,712
    
    
    
    4,440
 December 31, 2007US$000Land andbuildings
    
    
    Instruments
    
    
    TotalLess than one year
    
    
    232
    
    
    
    2,198
    
    
    
    2,430Between one and five years
    
    
    929
    
    
    
    3,566
    
    
    
    4,495More than five years
    
    
    871
    
    
    
    
    
    
    
    8712,032
    
    
    
    5,764
    
    
    
    7,796
 17.
    
    CASH AND CASH EQUIVALENTS
 December 31, 2008
    
    
    December 31, 2007US$000
    
    
    US$000Cash at bank and in hand
    
    
    3,182
    
    
    
    4,193Short-term deposits
    
    
    2,002
    
    
    
    4,507Cash and cash equivalents in the statements of cash flows
    
    
    5,184
    
    
    
    8,700
   104




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2008
 18.
    
    CAPITAL AND RESERVES


Share
    
    
    Sharecapital
    
    
    capital
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Convertible
    
    
    (AccumulatedA
    
    
    B
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    notes 
    
    
    deficit)/ordinary
    
    
    ordinary
    
    
    Share
    
    
    Translation
    
    
    Warrant
    
    
    Hedging
    
    
    equity
    
    
    retainedshares
    
    
    shares
    
    
    premium
    
    
    reserve
    
    
    reserve
    
    
    reserves
    
    
    component
    
    
    earnings
    
    
    TotalUS$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Balance at January 1, 2006
    
    
    818
    
    
    
    12
    
    
    
    124,227
    
    
    
    (1,622
    )
    
    
    3,803
    
    
    
    (64
    )
    
    
    164
    
    
    
    6,280
    
    
    
    133,618Total recognised income and expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,347
    
    
    
    
    
    
    
    64
    
    
    
    
    
    
    
    3,276
    
    
    
    4,687Share-based payments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,262
    
    
    
    1,262Options exercised
    
    
    2
    
    
    
    
    
    
    
    212
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    214Class A shares issued on conversion of convertible notes
    
    
    20
    
    
    
    
    
    
    
    3,624
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,644Class A shares issued in private placement
    
    
    126
    
    
    
    
    
    
    
    24,879
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    25,005Share issue expenses
    
    
    
    
    
    
    
    
    
    
    (1,168
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,168
    )Balance at December 31, 2006
    
    
    966
    
    
    
    12
    
    
    
    151,774
    
    
    
    (275
    )
    
    
    3,803
    
    
    
    
    
    
    
    164
    
    
    
    10,818
    
    
    
    167,262Balance at January 1, 2007
    
    
    966
    
    
    
    12
    
    
    
    151,774
    
    
    
    (275
    )
    
    
    3,803
    
    
    
    
    
    
    
    164
    
    
    
    10,818
    
    
    
    167,262Total recognised income and expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,072
    
    
    
    
    
    
    
    201
    
    
    
    
    
    
    
    (35,372
    )
    
    
    (34,099
    )Share-based payments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,482
    
    
    
    1,482Options exercised
    
    
    4
    
    
    
    
    
    
    
    450
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    454Class A shares issued on conversion of convertible notes
    
    
    9
    
    
    
    
    
    
    
    1,813
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,822Convertible notes  transfer to retained earnings on maturity
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (164
    )
    
    
    164
    
    
    
    Share issue expenses
    
    
    
    
    
    
    
    
    
    
    (76
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (76
    )Balance at December 31, 2007
    
    
    979
    
    
    
    12
    
    
    
    153,961
    
    
    
    797
    
    
    
    3,803
    
    
    
    201
    
    
    
    
    
    
    
    (22,908
    )
    
    
    136,845Balance at January 1, 2008
    
    
    979
    
    
    
    12
    
    
    
    153,961
    
    
    
    797
    
    
    
    3,803
    
    
    
    201
    
    
    
    
    
    
    
    (22,908
    )
    
    
    136,845Total recognised income and expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (806
    )
    
    
    
    
    
    
    (226
    )
    
    
    
    
    
    
    (77,778
    )
    
    
    (78,810
    )Share-based payments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,193
    
    
    
    1,193Options exercised
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Class A shares issued on conversion of convertible notes
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Class A shares issued in private placement
    
    
    79
    
    
    
    
    
    
    
    7,037
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,116Share issue expenses
    
    
    
    
    
    
    
    
    
    
    (439
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (439
    )Fair Value of Warrants issued during the year
    
    
    
    
    
    
    
    
    
    
    (695
    )
    
    
    
    
    
    
    695
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Balance at December 31, 2008
    
    
    1,058
    
    
    
    12
    
    
    
    159,864
    
    
    
    (9
    )
    
    
    4,498
    
    
    
    (25
    )
    
    
    
    
    
    
    (99,493
    )
    
    
    65,905


105




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2008
 18.
    
    CAPITAL AND RESERVES (Continued)Share capital
 Class A Ordinary shares
    
    
    Class A Ordinary sharesIn thousands of shares
    
    2008
    
    
    2007In issue at January 1
    
    
    74,757
    
    
    
    73,602Issued for cash
    
    
    7,260
    
    
    
    285Issued for non cash (note 21)
    
    
    
    
    
    
    870In issue at December 31
    
    
    82,017
    
    
    
    74,757
 Class B Ordinary shares
    
    
    Class B Ordinary sharesIn thousands of shares
    
    2008
    
    
    2007In issue at January 1
    
    
    700
    
    
    
    700Issued for cash
    
    
    
    
    
    
    In issue at December 31
    
    
    700
    
    
    
    700
  (a)
    
    During 2008, the Group issued 7,260,816 A Ordinary shares as part of a private placement.
These shares were issued for a consideration of US$7,116,000, settled in cash. The Group
incurred costs of US$439,000 in connection with the issue of shares.
 (b)
    
    During 2007, the Group issued 285,216 A Ordinary shares from the exercise of warrants and
employee options for a consideration of US$454,000, settled in cash. A further 870,052 shares
(equivalent to US$1,821,000) were issued on a non cash basis as the Group made its final
convertible debt repayment by way of shares during the year, which resulting in the release of
the carrying amount of the convertible notes liability on the balance sheet (see note 21). In
2007, the Group incurred costs of US$76,000 (2006: US$1,168,000) (2005: US$317,000) in
connection with the issue of shares.
 (c)
    
    In April 2006, Trinity Biotech completed a US$25,005,000 private placement of 11,593,840 of
Class A Ordinary Shares of the Group. The Group issued a further 145,156 shares from the
exercise of employee options for a consideration of US$214,000. Transactions costs relating to
the private placement and the exercise of employee options amounted to US$1,168,000. 1,821,980
shares (equivalent to US$3,644,000) were issued on a non cash basis as the Group made part of
its convertible debt repayments by way of shares (see note 21).
 (d)
    
    Since its incorporation the Group has not declared or paid dividends on its A Ordinary
Shares or B Ordinary Shares. The Group anticipates, for the foreseeable future, that it
will retain any future earnings in order to fund its business operations. The Group does
not, therefore, anticipate paying any cash or share dividends on its A Ordinary or B
Ordinary shares in the foreseeable future. As provided in the Articles of Association of the
Company, dividends or other distributions will be declared and paid in US Dollars.
 (e)
    
    The Class B Ordinary Shares have two votes per share and the rights to participate in any
liquidation or sale of the Group and to receive dividends as if each Class B Ordinary Share
were two Class A Ordinary Shares. In all other respects they rank pari passu with the A
ordinary shares.
 Currency translation reserve
   106




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2008
 Warrant reserve
    Fair value at date of measurement
    
    US$0.32Share price
    
    US$
    0.91Exercise price
    
    US$
    1.39Expected volatility
    
    
    51.31
    %Contractual life
    
    5 yearsRisk free rate
    
    
    2.57
    %Expected dividend yield
    
    
    
  Fair value at date of measurement
    
    US$3.02Share price
    
    US$
    4.78Exercise price
    
    US$
    5.25Expected volatility
    
    
    78.31
    %Contractual life
    
    5 yearsRisk free rate
    
    
    3.26
    %Expected dividend yield
    
    
    
 Hedging reserve
  Convertible notes  equity component
   107




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2008
 19.
    
    SHARE OPTIONS AND SHARE WARRANTS
 Warrants
   December 31, 2008
    
    
    December 31, 2007Outstanding at beginning of year
    
    
    1,258,824
    
    
    
    1,317,324Granted
    
    
    2,178,244
    
    
    
    Exercised
    
    
    
    
    
    
    (10,000
    )Forfeited
    
    
    
    
    
    
    (48,500
    )Outstanding at end of year
    
    
    3,437,068
    
    
    
    1,258,824
 Options
   Vesting conditions
  Contractual life
   108




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2008
  Weighted-averageOptions and
    
    
    exercise price
    
    
    Rangewarrants
    
    
    US$
    
    
    US$Outstanding January 1, 2006
    
    
    8,848,457
    
    
    
    2.35
    
    
    
    0.81-5.25Granted
    
    
    1,617,000
    
    
    
    2.02
    
    
    
    1.35-2.30Exercised
    
    
    (145,155
    )
    
    
    1.47
    
    
    
    0.98-1.75Forfeited
    
    
    (708,235
    )
    
    
    2.15
    
    
    
    0.81-5.00Outstanding at end of period
    
    
    9,612,067
    
    
    
    2.32
    
    
    
    0.98-5.25Exercisable at end of year
    
    
    5,605,469
    
    
    
    2.50
    
    
    
    0.98-5.25Outstanding January 1, 2007
    
    
    9,612,067
    
    
    
    2.32
    
    
    
    0.98-5.25Granted
    
    
    364,667
    
    
    
    2.24
    
    
    
    1.35-2.80Exercised
    
    
    (285,210
    )
    
    
    1.59
    
    
    
    0.98-2.72Forfeited
    
    
    (623,405
    )
    
    
    2.07
    
    
    
    0.98-4.00Outstanding at end of period
    
    
    9,068,119
    
    
    
    2.36
    
    
    
    0.98-5.25Exercisable at end of year
    
    
    6,417,223
    
    
    
    2.48
    
    
    
    0.98-5.25Outstanding January 1, 2008
    
    
    9,068,119
    
    
    
    2.36
    
    
    
    0.98-5.25Granted
    
    
    4,378,244
    
    
    
    1.14
    
    
    
    0.74-1.66Exercised
    
    
    
    
    
    
    
    
    
    
    Forfeited
    
    
    (1,635,249
    )
    
    
    1.58
    
    
    
    0.74-4.50Outstanding at end of period
    
    
    11,811,114
    
    
    
    2.01
    
    
    
    0.74-5.25Exercisable at end of year
    
    
    8,670,013
    
    
    
    2.27
    
    
    
    0.74-5.25
    Outstanding
    
    
    ExercisableWeighted-
    
    
    
    
    
    
    
    
    
    
    Weighted-avg
    
    
    
    
    
    
    
    
    
    
    avgcontractual
    
    
    
    
    
    
    
    
    
    contractualWeighted-
    
    
    life
    
    
    
    
    
    
    Weighted-
    
    
    lifeExercise price
    
    No. of
    
    
    avg exercise
    
    
    remaining
    
    
    No. of
    
    
    avg exercise
    
    
    remainingrange
    
    options/warrants
    
    
    price
    
    
    (years)
    
    
    options/warrants
    
    
    price
    
    
    (years)US$0.74-US$0.99
    
    
    2,093,667
    
    
    
    US$0.87
    
    
    
    4.28
    
    
    
    833,667
    
    
    
    US$0.98
    
    
    
    0.75US$1.00-US$2.05
    
    
    5,338,372
    
    
    
    US$1.47
    
    
    
    3.78
    
    
    
    4,165,860
    
    
    
    US$1.50
    
    
    
    3.36US$2.06-US$2.99
    
    
    2,908,750
    
    
    
    US$2.36
    
    
    
    3.80
    
    
    
    2,200,162
    
    
    
    US$2.43
    
    
    
    3.42US$3.00-US$5.25
    
    
    1,470,325
    
    
    
    US$4.96
    
    
    
    0.35
    
    
    
    1,470,324
    
    
    
    US$4.96
    
    
    
    0.3511,811,114
    
    
    
    
    
    
    
    
    
    
    
    8,670,013
  109




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2008
   Outstanding
    
    
    ExercisableWeighted-
    
    
    
    
    
    
    
    
    
    
    Weighted-avg
    
    
    
    
    
    
    
    
    
    
    avgcontractual
    
    
    
    
    
    
    
    
    
    contractualWeighted-
    
    
    life
    
    
    
    
    
    
    Weighted-
    
    
    lifeExercise price
    
    No. of
    
    
    avg exercise
    
    
    remaining
    
    
    No. of
    
    
    avg exercise
    
    
    remainingrange
    
    options
    
    
    price
    
    
    (years)
    
    
    options
    
    
    price
    
    
    (years)US$0.81-US$0.99
    
    
    1,218,834
    
    
    
    US$0.98
    
    
    
    1.44
    
    
    
    1,218,834
    
    
    
    US$0.98
    
    
    
    1.44US$1.00-US$2.05
    
    
    3,033,711
    
    
    
    US$1.60
    
    
    
    3.32
    
    
    
    2,005,868
    
    
    
    US$1.55
    
    
    
    2.48US$2.06-US$2.99
    
    
    3,250,750
    
    
    US$
    2.37
    
    
    
    4.66
    
    
    
    1,660,364
    
    
    US$
    2.49
    
    
    
    3.90US$3.00-US$5.25
    
    
    1,564,824
    
    
    US$
    4.89
    
    
    
    1.37
    
    
    
    1,532,157
    
    
    US$
    4.92
    
    
    
    1.329,068,119
    
    
    
    
    
    
    
    
    
    
    
    6,417,223
  Charge for the year under IFRS 2
   December 31,
    
    
    December 31,
    
    
    December 31,2008
    
    
    2007
    
    
    2006US$000
    
    US$000
    
    US$000Share-based payments  cost of sales
    
    
    51
    
    
    
    71
    
    
    
    89Share-based payments  research and development
    
    
    48
    
    
    
    108
    
    
    
    36Share-based payments  selling,
general and administrative
    
    
    1,067
    
    
    
    1,224
    
    
    
    1,016Total
    
    
    1,166
    
    
    
    1,403
    
    
    
    1,141
   110




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2008
 
  Key
    
    
    
    
    
    Key
    
    
    
    
    
    
    Keymanagement
    
 
    Other

 
 

    management

    
    
    Other
    
    
    management
    
    
    Otherpersonnel
    
    
    employees
    
    
    personnel
    
    
    employees
    
    
    personnel
    
    
    employees2008
    
    
    2008
    
    
    2007
    
    
    2007
    
    
    2006
    
    
    2006Weighted average
fair value at
measurement date
    
    US$
    0.47
    
    
    US$
    0.39
    
    
    
    
    
    
    US$
    0.96
    
    
    US$
    1.17
    
    
    US$
    0.97Total share options
granted
    
    
    1,665,000
    
    
    
    535,000
    
    
    
    
    
    
    
    364,667
    
    
    
    860,000
    
    
    
    757,000Weighted average
share price
    
    US$
    0.89
    
    
    US$
    0.92
    
    
    
    
    
    
    US$
    2.28
    
    
    US$
    2.09
    
    
    US$
    1.95Weighted average
exercise price
    
    US$
    0.89
    
    
    US$
    0.92
    
    
    
    
    
    
    US$
    2.28
    
    
    US$
    2.09
    
    
    US$
    1.95Weighted average
expected volatility
    
    
    51.61
    %
    
    
    46.79
    %
    
    
    
    
    
    
    47.41
    %
    
    
    56.11
    %
    
    
    54.88
    %Weighted average
expected life
    
    6.36 years
    
    
    4.60 years
    
    
    
    
    
    
    4.18 years
    
    
    5.73 years
    
    
    4.47 yearsWeighted average
risk free interest
rate
    
    
    2.77
    %
    
    
    3.28
    %
    
    
    
    
    
    
    4.35
    %
    
    
    4.55
    %
    
    
    4.83
    %Expected dividend
yield
    
    
    0
    %
    
    
    0
    %
    
    
    
    
    
    
    0
    %
    
    
    0
    %
    
    
    0
    %
   20.
    
    INTEREST-BEARING LOANS AND BORROWINGSThis note provides information about the contractual terms of the Groups interest-bearing loans
and borrowings. For more information about the Groups exposure to interest rate and foreign
currency risk, see note 29.
 December 31, 2008
    
    
    December 31, 2007Note
    
    
    US$000
    
    
    US$000Current liabilitiesFinance lease liabilities
    
    
    
    
    
    
    430
    
    
    
    657Bank loans, secured
    
    
    27
    (c)- Repayable by instalment
    
    
    
    
    
    
    5,302
    
    
    
    8,220- Repayable not by instalment
    
    
    
    
    
    
    6,924
    
    
    
    6,94412,656
    
    
    
    15,821Non-current liabilitiesFinance lease liabilities
    
    
    
    
    
    
    1,138
    
    
    
    1,648Bank loans, secured
    
    
    27
    (c)- Repayable by instalment
    
    
    
    
    
    
    22,327
    
    
    
    24,66423,465
    
    
    
    26,312
 Bank loans
   111




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2008
   Finance lease liabilities
  December 31, 2008US$000Minimumleasepayments
    
    
    Interest
    
    
    PrincipalLess than one year
    
    
    514
    
    
    
    84
    
    
    
    430In more than one year, but not more than two
    
    
    477
    
    
    
    58
    
    
    
    419In more than two years but not more than five
    
    
    757
    
    
    
    38
    
    
    
    7191,748
    
    
    
    180
    
    
    
    1,568
 December 31, 2008US$000Minimumleasepayments
    
    
    Interest
    
    
    PrincipalLess than one year
    
    
    779
    
    
    
    122
    
    
    
    657In more than one year, but not more than two
    
    
    550
    
    
    
    89
    
    
    
    461In more than two years but not more than five
    
    
    1,287
    
    
    
    100
    
    
    
    1,1872,616
    
    
    
    311
    
    
    
    2,305
  Promissory notes
  Terms and debt repayment schedule
  Nominal
    
    
    
    
    
    
    Fair
    
    
    Carrying
    
    
    Fair
    
    
    Carryinginterest
    
    
    Year of
    
    
    Value
    
    
    Value
    
    
    Value
    
    
    ValueFacility
    
    Currency
    
    
    rate
    
    
    maturity
    
    
    December 31, 2008
    
    
    December 31, 2007Fixed bank loans
    
    USD
    
    
    5.00
    %
    
    
    2009
    
    
    
    2
    
    
    
    2
    
    
    
    19
    
    
    
    20Floating (LIBOR) bank
loans
    
    USD
    
    
    2.74
    %
    
    
    2009  2012
    
    
    
    34,551
    
    
    
    34,551
    
    
    
    39,808
    
    
    
    39,808Finance lease liabilities
    
    Euro
    
    
    6.13
    %
    
    
    2009  2012
    
    
    
    1,551
    
    
    
    1,524
    
    
    
    2,153
    
    
    
    2,142Finance lease liabilities
    
    GBP
    
    
    7.54
    %
    
    
    2009  2010
    
    
    
    44
    
    
    
    44
    
    
    
    145
    
    
    
    163Total interest-bearing
loans and borrowings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    36,148
    
    
    
    36,121
    
    
    
    42,125
    
    
    
    42,133
  112




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2008
 21.
    
    CONVERTIBLE NOTES  INTEREST BEARING
 December 31, 2008
    
    
    December 31, 2007US$000
    
    
    US$000Convertible notesDue within one year
    
    
    
    
    
    
    Total
    
    
    
    
    
    
    
   2008
    
    
    2007US$000
    
    
    US$000Proceeds from issue of convertible notes
    
    
    
    
    
    
    25,000Transaction costs
    
    
    
    
    
    
    (1,307
    )Net
    
    
    
    
    
    
    23,693Converted to shares
    
    
    
    
    
    
    (17,355
    )Cash repayments
    
    
    
    
    
    
    (7,288
    )Amount classified as equity
    
    
    
    
    
    
    (297
    )Accreted interest capitalised
    
    
    
    
    
    
    1,247Carrying amount of liability at December 31
    
    
    
    
    
    
    
  22.
    
    TRADE AND OTHER PAYABLES
 December 31, 2008
    
    
    December 31, 2007US$000
    
    
    US$000Trade payables
    
    
    11,585
    
    
    
    8,454Payroll taxes
    
    
    393
    
    
    
    514Employee related social insurance
    
    
    429
    
    
    
    520Accrued restructuring expenses
    
    
    1,144
    
    
    
    2,016Accrued liabilities
    
    
    7,506
    
    
    
    11,821Deferred income
    
    
    1,912
    
    
    
    1,45422,969
    
    
    
    24,779
  113




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2008
 Accrued restructuring expensesThe restructuring accrual at the year end relates to contract termination costs and employee
termination benefits associated with the restructuring announced in December (see note 3).Following the announcement of the restructuring in December 2007 (see note 3), the Group
recognised an accrual of US$2,016,000 for expected restructuring costs. Of the total restructuring
accrual of US$2,016,000, US$1,470,000 related to costs accrued for contract termination costs and
employee termination benefits and included US$332,000 for termination payments accrued as part of
the closure of the Swedish operation. US$116,000 related to a building lease and other
non-redundancy obligations arising from the closure of the Swedish manufacturing operation.23.
    
    OTHER FINANCIAL LIABILITIES
 December 31, 2008
    
    
    December 31, 2007US$000
    
    
    US$000ConsiderationDue within 1 year
    
    
    
    
    
    
    2,725
    
    
    
    2,725
 ConsiderationIn June 2006, the Group acquired the haemostasis business of bioMerieux for a cash consideration
of US$38.2 million. In addition bioMerieux was entitled to deferred consideration up to a maximum
of US$6.2 million, payable in June 2007 and up to an additional US$5.3 million, payable in June
2008, depending on the performance of the business during 2006. At December 31, 2006, it was
determined that the deferred consideration of US$3.2 million and US$2.8 million would be payable
in July 2007 and July 2008 respectively. Deferred consideration of US$3,208,000 was paid in July
2007. In accordance with the Groups policy these deferred consideration amounts have been
discounted to reflect their fair value at the date of acquisition. At December 31, 2007, the fair
value of the deferred consideration still outstanding amounted to US$2,725,000 (2006:
US$5,688,000). In June 2008, the final portion of the deferred consideration of US$2,802,000 was
paid and accordingly, there was no liability at December 31, 2008.24.
    
    PROVISIONS
 December 31, 2008
    
    
    December 31, 2007US$000
    
    
    US$000Provisions
    
    
    50
    
    
    
    100
 Movement on provisions during the year is as follows:
 December 31, 2008
    
    
    December 31, 2007US$000
    
    
    US$000Balance at January 1
    
    
    100
    
    
    
    100Provisions released during the year
    
    
    (50
    )
    
    
    Balance at December 31
    
    
    50
    
    
    
    100
 During 2008 the Group experienced no significant product warranty claims. However, the Group
believes that it is appropriate to retain a product warranty provision to cover any future claims.
The provision at December 31, 2008 represents the estimated cost of product warranties, the exact
amount which cannot be determined. US$50,000 represents managements best estimate of these
obligations at December 31, 2008.
 25.
    
    OTHER PAYABLES
 December 31, 2008
    
    
    December 31, 2007US$000
    
    
    US$000Other payables
    
    
    59
    
    
    
    74
  114




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2008
 26.
    
    BUSINESS COMBINATIONS2008 AcquisitionsThere were no acquisitions made by the Group in the current financial year.2007 AcquisitionsIn September 2007, the Group acquired the immuno technology business of Cortex Biochem Inc
(Cortex) for a total cash consideration of US$2,925,000, consisting of cash consideration of
US$2,887,000 and acquisition expenses of US$38,000.In October 2007, the Group acquired certain components relating to the distribution business of
Sterilab Services UK (Sterilab), a distributor of Infectious Diseases products, for a total of
US$1,489,000, consisting of cash consideration of US$1,480,000 and acquisition expenses of
US$9,000.The results for both acquisitions in 2007 are incorporated from the date of acquisition in the
consolidated statement of operations for the year ended December 31, 2007.
 Cortex
    
    
    Sterilab
    
    
    TotalUS$000
    
    
    US$000
    
    
    US$000Property, plant and equipment
    
    
    
    
    
    
    23
    
    
    
    23Inventories
    
    
    41
    
    
    
    88
    
    
    
    129Trade and other receivables
    
    
    152
    
    
    
    
    
    
    
    152Intangible assets
    
    
    844
    
    
    
    656
    
    
    
    1,5001,037
    
    
    
    767
    
    
    
    1,804Deferred tax liability (see note 13)
    
    
    102
    
    
    
    183
    
    
    
    285Trade and other payables
    
    
    45
    
    
    
    
    
    
    
    45147
    
    
    
    183
    
    
    
    330Fair value of net assets
    
    
    890
    
    
    
    584
    
    
    
    1,474Goodwill arising on acquisition
    
    
    2,035
    
    
    
    905
    
    
    
    2,9402,925
    
    
    
    1,489
    
    
    
    4,414Consideration:Cash payments
    
    
    2,887
    
    
    
    1,480
    
    
    
    4,367Costs associated with the acquisition
    
    
    38
    
    
    
    9
    
    
    
    472,925
    
    
    
    1,489
    
    
    
    4,414
  115




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2008
 Goodwill capitalised during 2007 in respect of the Cortex and Sterilab acquisitions amounted to
US$2,940,000 and comprised:
 Fair valueBook values
    
    
    adjustments
    
    
    Fair value
    
    
    Consideration
    
    
    GoodwillUS$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000CortexTrade and other receivables
    
    
    152
    
    
    
    
    
    
    
    152Inventories
    
    
    218
    
    
    
    (177
    )
    
    
    41Intangible assets
    
    
    
    
    
    
    844
    
    
    
    844370
    
    
    
    667
    
    
    
    1,037Deferred tax liability
    
    
    
    
    
    
    102
    
    
    
    102Trade and other payables
    
    
    45
    
    
    
    
    
    
    
    45325
    
    
    
    565
    
    
    
    890
    
    
    
    2,925
    
    
    
    2,035SterilabProperty, plant and equipment
    
    
    23
    
    
    
    
    
    
    
    23Inventories
    
    
    99
    
    
    
    (11
    )
    
    
    88Intangible assets
    
    
    
    
    
    
    656
    
    
    
    656122
    
    
    
    645
    
    
    
    767Deferred tax liability
    
    
    
    
    
    
    183
    
    
    
    183Trade and other payables
    
    
    
    
    
    
    
    
    
    
    122
    
    
    
    462
    
    
    
    584
    
    
    
    1,489
    
    
    
    905
 Impact of the acquisition on the statement of operations and cashflowDue to their size, the impact of the acquisition of Cortex and Sterilab does not have a significant
impact on the statement of operations and cashflow in 2007.The following represents the increases to goodwill which took place in 2007.
 US$000Goodwill recognised with respect to 2007 acquisitions- Cortex
    
    
    2,035- Sterilab
    
    
    905Goodwill recognised with respect to 2006 acquisitions- bioMerieux
    
    
    42Total goodwill movement in 2007
    
    
    2,982
 2006 AcquisitionsIn June 2006, Trinity Biotech acquired the haemostasis business of bioMerieux Inc. (bioMerieux)
for a total consideration of US$44.4 million, consisting of cash consideration of US$38.2 million,
deferred consideration of US$5.5 million (net of discounting) and acquisition expenses of
US$0.7 million. At December 31, 2006, Trinity
Biotech had accrued US$5,688,000 for the deferred consideration to be paid in June 2007 and June
2008 (see note 23). Deferred consideration of US$3,208,000 (US$3,120,000 net of discounting) was
paid to bioMerieux in June 2007. At December 31, 2007, the Group had accrued deferred consideration
US$2,725,000 to be paid in June 2008. A payment of $2,802,000 was paid to bioMerieux in June 2008
in respect of the final portion of this deferred consideration and accordingly there is no
liability at December 31, 2008.
  116




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2008
 In October, 2006, Trinity Biotech acquired the French distribution business of Laboratoires
Nephrotek SARL (Nephrotek) for a total consideration of US$1,175,000, consisting of cash
consideration of US$1,060,000 and acquisition expenses of US$115,000.The results of these acquisitions for 2006 are incorporated from the date of acquisition in the
consolidated statement of operations for the year ended December 31, 2006. The fair value of the
identifiable assets and liabilities were as follows:
 bioMerieux
    
    
    Nephrotek
    
    
    TotalUS$000
    
    
    US$000
    
    
    US$000Property, plant and equipment
    
    
    2,354
    
    
    
    64
    
    
    
    2,418Inventories
    
    
    12,529
    
    
    
    345
    
    
    
    12,874Intangible assets
    
    
    11,150
    
    
    
    235
    
    
    
    11,38526,033
    
    
    
    644
    
    
    
    26,677Deferred tax liability (see note 13)
    
    
    1,293
    
    
    
    77
    
    
    
    1,370Trade and other payables
    
    
    1,319
    
    
    
    69
    
    
    
    1,3882,612
    
    
    
    146
    
    
    
    2,758Fair value of net assets
    
    
    23,421
    
    
    
    498
    
    
    
    23,919Goodwill arising on acquisition
    
    
    21,002
    
    
    
    677
    
    
    
    21,67944,423
    
    
    
    1,175
    
    
    
    45,598Consideration:Cash payments
    
    
    38,157
    
    
    
    821
    
    
    
    38,978Deferred consideration
    
    
    5,511
    
    
    
    239
    
    
    
    5,750Costs associated with the acquisition
    
    
    755
    
    
    
    115
    
    
    
    87044,423
    
    
    
    1,175
    
    
    
    45,598
 Goodwill capitalised during 2006 in respect of the acquired haemostasis business from bioMerieux
and the acquired distribution business from Nephrotek amounted to US$21,679,000 and comprises:
 Fair valueBook values
    
    
    adjustments
    
    
    Fair value
    
    
    Consideration
    
    
    GoodwillUS$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000bioMerieuxProperty, plant and equipment
    
    
    2,659
    
    
    
    (305
    )
    
    
    2,354Inventories
(including prepayments)
    
    
    12,848
    
    
    
    (319
    )
    
    
    12,529Intangible assets
    
    
    
    
    
    
    11,150
    
    
    
    11,15015,507
    
    
    
    10,526
    
    
    
    26,033Deferred tax liability
    
    
    
    
    
    
    1,293
    
    
    
    1,293Trade and other payables
    
    
    1,219
    
    
    
    100
    
    
    
    1,31914,288
    
    
    
    9,133
    
    
    
    23,421
    
    
    
    44,423
    
    
    
    21,002NephrotekProperty, plant and equipment
    
    
    96
    
    
    
    (32
    )
    
    
    64Inventories
    
    
    394
    
    
    
    (49
    )
    
    
    345Intangible assets
    
    
    
    
    
    
    235
    
    
    
    235490
    
    
    
    154
    
    
    
    644Deferred tax liability
    
    
    
    
    
    
    77
    
    
    
    77Trade and other payables
    
    
    40
    
    
    
    29
    
    
    
    69450
    
    
    
    48
    
    
    
    498
    
    
    
    1,175
    
    
    
    677
  117




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2008
  Provisional
    
    
    Adjustments
    
    
    Adjustments
    
    
    Finalfair value
    
    
    to net assets
    
    
    to costs
    
    
    fair value2006
    
    
    2007
    
    
    2007
    
    
    2007US$000
    
    US$000
    
    US$000
    
    US$000bioMerieuxIntangible assets
    
    
    11,150
    
    
    
    
    
    
    
    
    
    
    
    11,150Working capital
    
    
    14,883
    
    
    
    (42
    )
    
    
    
    
    
    
    14,84126,033
    
    
    
    (42
    )
    
    
    
    
    
    
    25,991Deferred tax liability
    
    
    1,293
    
    
    
    
    
    
    
    
    
    
    
    1,293Trade and other payables
    
    
    1,319
    
    
    
    
    
    
    
    
    
    
    
    1,31923,421
    
    
    
    (42
    )
    
    
    
    
    
    
    23,379Consideration and costs
    
    
    44,423
    
    
    
    
    
    
    
    
    
    
    
    42,423
 27.
    
    COMMITMENTS AND CONTINGENCIES(a)
    
    Capital CommitmentsThe Group has no capital commitments authorised and contracted for as at December 31, 2008 (2007:
US$Nil).(b)
    
    Leasing CommitmentsThe Group leases a number of premises under operating leases. The leases typically run for
periods up to 25 years. Lease payments are reviewed periodically (typically on a 5 year basis) to
reflect market rentals. Operating lease commitments payable during the next 12 months amount to
US$4,438,000 (2007: US$4,943,000) payable on leases of buildings at Dublin and Bray, Ireland,
Berkshire, UK, Paris, France, Jamestown, New York, Kansas City, Missouri, New Jersey, Concord,
Massachusetts and Carlsbad, California and motor vehicles and equipment in the UK and Germany.
US$181,000 (2007: US$170,000) of these operating lease commitments relates to leases whose
remaining term will expire within one year, US$902,000 (2007: US$1,084,000) relates to leases
whose remaining term expires between one and two years, US$350,000 (2007: US$574,000) between two
and five years and the balance of US$3,005,000 (2007: US$3,115,000) relates to leases which expire
after more than five years. See note 28 for related party leasing arrangements.
  118




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2008
 Future minimum operating lease commitments with non-cancellable terms in excess of one year are as follows:
 Year ended2008Operating leasesUS$0002009
    
    
    4,4382010
    
    
    3,9722011
    
    
    3,4912012
    
    
    3,1642013
    
    
    3,030Later years
    
    
    39,595Total lease obligations
    
    
    57,690
 Year ended2007Operating leasesUS$0002008
    
    
    4,9432009
    
    
    4,3702010
    
    
    3,6802011
    
    
    3,2982012
    
    
    3,138Later years
    
    
    43,122Total lease obligations
    
    
    62,551
 For future minimum finance lease commitments, in respect of which the lessor has a charge over the
related assets, see note 20.(c)
    
    Bank SecurityThe Groups bank borrowings (note 20) are secured by a fixed and floating charge over the assets of
Group entities, including specific charges over the shares in the subsidiaries and the Groups
patents. Various covenants apply to the Groups bank borrowings with respect to profitability,
interest cover, capital expenditure, working capital and location of assets. As at December 31,
2008 the Group was in breach of one of these covenants which had been waived by the banks. The
covenant which was breached concerned minimum tangible net worth for the year end December 31, 2008
(see note 29).(d)
    
    Section 17 GuaranteesPursuant to the provisions of Section 17, Irish Companies (Amendment) Act, 1986, the Company has
guaranteed the liabilities of Trinity Biotech Manufacturing Limited, Trinity Biotech Manufacturing
Services Limited, Trinity Research Limited, Benen Trading Limited, Trinity Biotech Financial
Services Limited and Trinity Biotech Sales Limited, subsidiary undertakings in the Republic of
Ireland, for the financial year to December 31, 2008 and, as a result, these subsidiary
undertakings have been exempted from the filing provisions of Section 17, Irish Companies
(Amendment) Act, 1986. Where the Company enters into these guarantees of the indebtedness of other
companies within its Group, the Company considers these to be insurance arrangements and accounts
for them as such. The Company treats the guarantee contract as a contingent liability until such
time as it becomes probable that the company will be required to make a payment under the
guarantee. The Company does not enter into financial guarantee with third parties.
  119




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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2008
 (e)
    
    Government Grant ContingenciesThe Group has received training and employment grant income from Irish development agencies.
Subject to existence of certain conditions specified in the grant agreements, this income may
become repayable. No such conditions existed as at December 31, 2008. However if the income were
to become repayable, the maximum amounts repayable as at December 31, 2008 would amount to
US$1,997,000 (2007: US$644,000).28.
    
    RELATED PARTY TRANSACTIONSThe Group has related party relationships with its subsidiaries, and with its directors and
executive officers.Leasing arrangements with related partiesThe Group has entered into various arrangements with JRJ Investments (JRJ), a partnership owned
by Mr OCaoimh and Dr Walsh, directors of the Company, to provide for current and potential future
needs to extend its premises at IDA Business Park, Bray, Co. Wicklow, Ireland.In July 2000, Trinity Biotech entered into an agreement with JRJ pursuant to which the Group took a
lease of a 25,000 square foot premises adjacent to the existing facility for a term of 20 years at
a rent of 7.62 per square foot for an annual rent of 190,000 (US$279,000). During 2006,
the rent on this property was reviewed and increased to 11.00 per square foot, resulting in an
annual rent of 275,000 (US$404,000).In November 2002, the Group entered into an agreement for a 25 year lease with JRJ for offices that
have been constructed adjacent to its premises at IDA Business Park, Bray, Co. Wicklow, Ireland.
The annual rent of 381,000 (US$560,000) is payable from January 1, 2004.In December 2007, the Group entered into an agreement with Mr. OCaoimh and Dr Walsh pursuant to
which the Group took a lease on an additional 43,860 square foot manufacturing facility in Bray,
Ireland at a rate of 17.94 per square foot (including fit out) giving a total annual rent of
787,000 (US$1,158,000).Trinity Biotech and its directors (excepting Mr OCaoimh and Dr Walsh who express no opinion on
this point) believe that the arrangements entered into represent a fair and reasonable basis on
which the Group can meet its ongoing requirements for premises.Compensation of key management personnel of the GroupAt December 31, 2008, the key management personnel of the Group is made up of three key personnel,
the two executive directors and the Chief Financial Officer/Company Secretary, Mr Kevin Tansley.
Mr Brendan Farrell served as Chief Executive Officer until October 2008 and, accordingly, his
remuneration up to that date has been included in the analysis below.At December 31, 2007, the key management personnel of the Group was made up of five key personnel,
the four executive directors and the Chief Financial Officer/Company Secretary. On November 1,
2007, Mr Kevin Tansley became an executive officer on his appointment to Chief Financial Officer
and Company Secretary.Compensation for the year ended December 31, 2008 of these personnel is detailed below:
 December 31, 2008
    
    
    December 31, 2007US$000
    
    
    US$000Short-term employee benefits
    
    
    1,789
    
    
    
    2,293Compensation for loss of office
    
    
    1,283
    
    
    
    Post-employment benefits
    
    
    277
    
    
    
    149Equity compensation benefits
    
    
    736
    
    
    
    8534,085
    
    
    
    3,295
  120




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
  Directors and executive officers interests in the Companys shares and share option plan
 A Ordinary Shares
    
    
    Share optionsAt January 1, 2008
    
    
    5,881,205
    
    
    
    4,977,083Exercised
    
    
    
    
    
    
    Granted
    
    
    
    
    
    
    1,665,000Additions /(Removals)*
    
    
    (589,135
    )
    
    
    (1,885,000
    )Expired Options
    
    
    
    
    
    
    (642,998
    )Shares sold
    
    
    
    
    
    
    Shares purchased
    
    
    1,482,000
    
    
    
    At December 31, 2008
    
    
    6,774,070
    
    
    
    4,114,085
 *
    
    The amounts removed are wholly attributable to shares and share options held by Mr Brendan
Farrell as Mr. Farrell was not an executive officer at the year end. A Ordinary Shares
    
    
    Share optionsAt January 1, 2007
    
    
    5,881,205
    
    
    
    4,812,083Exercised
    
    
    
    
    
    
    Granted
    
    
    
    
    
    
    Additions
    
    
    
    
    
    
    165,000Shares sold
    
    
    
    
    
    
    Shares purchased
    
    
    
    
    
    
    At December 31, 2007
    
    
    5,881,205
    
    
    
    4,977,083
  
   121




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
  29.
    
    DERIVATIVES AND FINANCIAL INSTRUMENTS
  Effective interest rate and repricing analysis
  As at December 31,2008
    
    
    
    
    
    Effective
    
    
    Total
    
    
    6 mths or less
    
    
    6  12 mths
    
    
    12 years
    
    
    25 yearsUS$000
    
    Note
    
    
    interest rate
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Cash and cash
equivalents
    
    
    17
    
    
    
    2.16
    %
    
    
    5,184
    
    
    
    5,184
    
    
    
    
    
    
    
    
    
    
    
    Secured bank loans
 floating
    
    
    20
    
    
    
    2.74
    %
    
    
    (34,551
    )
    
    
    (34,551
    )
    
    
    
    
    
    
    
    
    
    
    Secured bank loans
 fixed
    
    
    20
    
    
    
    5
    %
    
    
    (2
    )
    
    
    (2
    )
    
    
    
    
    
    
    
    
    
    
    Finance lease
liabilities  fixed
    
    
    20
    
    
    
    6.98
    %
    
    
    (1,568
    )
    
    
    
    
    
    
    (16
    )
    
    
    (28
    )
    
    
    (1,524
    )Total
    
    
    
    
    
    
    
    
    
    
    (30,937
    )
    
    
    (29,369
    )
    
    
    (16
    )
    
    
    (28
    )
    
    
    (1,524
    )
 As at December 31,2007
    
    
    
    
    
    Effective
    
    
    Total
    
    
    6 mths or less
    
    
    6  12 mths
    
    
    12 years
    
    
    25 yearsUS$000
    
    Note
    
    
    interest rate
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Cash and cash
equivalents
    
    
    18
    
    
    
    4.54
    %
    
    
    8,700
    
    
    
    8,700
    
    
    
    
    
    
    
    
    
    
    
    Secured bank loans
 floating
    
    
    21
    
    
    
    6.99
    %
    
    
    (39,808
    )
    
    
    (39,808
    )
    
    
    
    
    
    
    
    
    
    
    Secured bank loans
 fixed
    
    
    21
    
    
    
    5
    %
    
    
    (20
    )
    
    
    
    
    
    
    
    
    
    
    (20
    )
    
    
    Finance lease
liabilities  fixed
    
    
    21
    
    
    
    6.32
    %
    
    
    (2,305
    )
    
    
    (6
    )
    
    
    (39
    )
    
    
    (221
    )
    
    
    (2,039
    )Total
    
    
    
    
    
    
    
    
    
    
    (33,433
    )
    
    
    (31,114
    )
    
    
    (39
    )
    
    
    (241
    )
    
    
    (2,039
    )
   122




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 Interest rate risk
   Interest rate profile of financial liabilities
  December 31, 2008
    
    
    December 31, 2007US$ 000
    
    
    US$ 000Fixed rate instrumentsFixed rate financial liabilities
    
    
    (1,570
    )
    
    
    (2,325
    )Variable rate instrumentsFinancial assets
    
    
    5,184
    
    
    
    8,700Floating rate financial liabilities
    
    
    (34,551
    )
    
    
    (39,808
    )(30,937
    )
    
    
    (33,433
    )
  December 31, 2008
    
    
    December 31, 2007Fixed rate financial liabilitiesWeighted average interest rate
    
    
    6.16
    %
    
    
    6.09
    %Weighted average period for which rate is fixed
    
    3.56 years
    
    
    4.44 years
   Fair value sensitivity analysis for fixed rate instruments
  Cash flow sensitivity analysis for variable rate instruments
   123




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 Fair Values
  Cash flow
    
    
    Liabilities at
    
    
    TotalLoans and
    
    
    hedge
    
    
    amortised
    
    
    carrying
    
    
    FairNote
    
    
    receivables
    
    
    derivatives
    
    
    cost
    
    
    amount
    
    
    ValueDecember 31, 2008Trade receivables
    
    
    16
    
    
    
    24,962
    
    
    
    
    
    
    
    
    
    
    
    24,962
    
    
    
    24,962Cash and cash equivalents
    
    
    17
    
    
    
    5,184
    
    
    
    
    
    
    
    
    
    
    
    5,184
    
    
    
    5,184Finance lease receivable
    
    
    14, 16
    
    
    
    1,215
    
    
    
    
    
    
    
    
    
    
    
    1,215
    
    
    
    1,215Forward contracts used for hedging
    
    
    
    
    
    
    
    
    
    
    (27
    )
    
    
    
    
    
    
    (27
    )
    
    
    (27
    )Grant income receivable
    
    
    
    
    
    
    1,008
    
    
    
    
    
    
    
    
    
    
    
    1,008
    
    
    
    1,008Secured bank loans
    
    
    20
    
    
    
    
    
    
    
    
    
    
    
    (34,553
    )
    
    
    (34,553
    )
    
    
    (34,553
    )Finance lease liabilities
    
    
    20
    
    
    
    
    
    
    
    
    
    
    
    (1,568
    )
    
    
    (1,568
    )
    
    
    (1,595
    )Trade and other payables
(excluding deferred
revenue)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (21,057
    )
    
    
    (21,057
    )
    
    
    (21,057
    )Other payables
    
    
    25
    
    
    
    
    
    
    
    
    
    
    
    (59
    )
    
    
    (59
    )
    
    
    (59
    )Provisions
    
    
    24
    
    
    
    
    
    
    
    
    
    
    
    (50
    )
    
    
    (50
    )
    
    
    (50
    )32,369
    
    
    
    (27
    )
    
    
    (57,287
    )
    
    
    (24,945
    )
    
    
    (24,972
    )
 Cash flow
    
    
    Liabilities at
    
    
    TotalLoans and
    
    
    hedge
    
    
    amortised
    
    
    carrying
    
    
    FairNote
    
    
    receivables
    
    
    derivatives
    
    
    cost
    
    
    amount
    
    
    ValueDecember 31, 2007Trade receivables
    
    
    16
    
    
    
    23,104
    
    
    
    
    
    
    
    
    
    
    
    23,104
    
    
    
    23,104Cash and cash equivalents
    
    
    18
    
    
    
    8,700
    
    
    
    
    
    
    
    
    
    
    
    8,700
    
    
    
    8,700Finance lease receivable
    
    
    13, 16
    
    
    
    1,161
    
    
    
    
    
    
    
    
    
    
    
    1,161
    
    
    
    1,161Forward contracts used for hedging
    
    
    
    
    
    
    
    
    
    
    224
    
    
    
    
    
    
    
    224
    
    
    
    224Grant income receivable
    
    
    
    
    
    
    285
    
    
    
    
    
    
    
    
    
    
    
    285
    
    
    
    285Secured bank loans
    
    
    21
    
    
    
    
    
    
    
    
    
    
    
    (39,828
    )
    
    
    (39,828
    )
    
    
    (39,827
    )Finance lease liabilities
    
    
    21
    
    
    
    
    
    
    
    
    
    
    
    (2,305
    )
    
    
    (2,305
    )
    
    
    (2,298
    )Trade and other payables
(excluding deferred
revenue)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (23,327
    )
    
    
    (23,327
    )
    
    
    (23,327
    )Other financial liabilities
    
    
    24
    
    
    
    
    
    
    
    
    
    
    
    (2,725
    )
    
    
    (2,725
    )
    
    
    (2,725
    )Other payables
    
    
    26
    
    
    
    
    
    
    
    
    
    
    
    (74
    )
    
    
    (74
    )
    
    
    (74
    )Provisions
    
    
    25
    
    
    
    
    
    
    
    
    
    
    
    (100
    )
    
    
    (100
    )
    
    
    (100
    )33,250
    
    
    
    224
    
    
    
    (68,359
    )
    
    
    (34,885
    )
    
    
    (34,877
    )
  124




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 Interest rates used for determining fair value
  December 31, 2008
    
    
    December 31, 2007Loans and borrowings
    
    
    2.74
    %
    
    
    6.74%  6.99
    %Leases
    
    
    5.02%  5.14
    %
    
    
    5.84%  7.20
    %
  Liquidity risk
   Carrying
    
    
    Contractual
    
    
    6 mths or
    
    
    6 mths As at December 31, 2008
    
    amount
    
    
    cash flows
    
    
    less
    
    
    12 mths
    
    
    12 years
    
    
    25 yearsUS$000
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Financial liabilitiesSecured bank loans 
floating
    
    
    34,551
    
    
    
    36,289
    
    
    
    9,614
    
    
    
    3,463
    
    
    
    6,817
    
    
    
    16,395Secured bank loans  fixed
    
    
    2
    
    
    
    2
    
    
    
    2
    
    
    
    
    
    
    
    
    
    
    
    Finance lease liabilities
 fixed
    
    
    1,568
    
    
    
    1,748
    
    
    
    260
    
    
    
    254
    
    
    
    477
    
    
    
    757Trade & other payables
    
    
    22,969
    
    
    
    22,969
    
    
    
    22,969
    
    
    
    
    
    
    
    
    
    
    
    59,090
    
    
    
    61,008
    
    
    
    32,845
    
    
    
    3,717
    
    
    
    7,294
    
    
    
    17,152
   125




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 Carrying
    
    
    Contractual
    
    
    6 mths or
    
    
    6 mths As at December 31, 2007
    
    amount
    
    
    cash flows
    
    
    less
    
    
    12 mths
    
    
    12 years
    
    
    25 yearsUS$000
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Financial liabilitiesSecured bank loans 
floating
    
    
    39,808
    
    
    
    44,309
    
    
    
    12,537
    
    
    
    4,942
    
    
    
    9,484
    
    
    
    17,346Secured bank loans  fixed
    
    
    20
    
    
    
    21
    
    
    
    9
    
    
    
    9
    
    
    
    3
    
    
    
    Finance lease liabilities
 fixed
    
    
    2,305
    
    
    
    2,616
    
    
    
    408
    
    
    
    371
    
    
    
    550
    
    
    
    1,287Trade & other payables
    
    
    24,779
    
    
    
    24,779
    
    
    
    24,779
    
    
    
    
    
    
    
    
    
    
    
    66,912
    
    
    
    71,725
    
    
    
    37,733
    
    
    
    5,322
    
    
    
    10,037
    
    
    
    18,633
 Foreign exchange risk
      Carrying
    
    
    Contractual cash
    
    
    6 mths or
    
    
    6 mths  12As at December 31, 2008
    
    amount
    
    
    flows
    
    
    less
    
    
    mthsUS$000
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Forward contract used for hedging:Outflow
    
    
    (27
    )
    
    
    (3,900
    )
    
    
    (2,700
    )
    
    
    (1,200
    )Inflow
    
    
    
    
    
    
    3,896
    
    
    
    2,694
    
    
    
    1,202(27
    )
    
    
    (4
    )
    
    
    (6
    )
    
    
    2
  126




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 Sensitivity analysis
  Other equityProfit or loss
    
    
    movementsUS$000
    
    
    US$000December 31, 2008Euro
    
    
    1,808
    
    
    
    2Pound Sterling
    
    
    (24
    )December 31, 2007Euro
    
    
    1,991
    
    
    
    (20
    )Pound Sterling
    
    
    (580
    )
    
    
    Swedish Kroner
    
    
    9
    
    
    
    
  Credit Risk
    Exposure to credit risk
  Carrying Value
    
    
    Carrying ValueDecember 31, 2008
    
    
    December 31, 2007US$000
    
    
    US$000Third party trade receivables
    
    
    24,962
    
    
    
    23,104Finance lease income receivable
    
    
    1,215
    
    
    
    1,161Cash & cash equivalents
    
    
    5,184
    
    
    
    8,700Grant income receivable
    
    
    1,008
    
    
    
    285Forward exchange contracts used for hedging
    
    
    
    
    
    
    22432,369
    
    
    
    33,474
  127




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
  Carrying Value
    
    
    Carrying ValueDecember 31, 2008
    
    
    December 31, 2007US$000
    
    
    US$000United States
    
    
    11,310
    
    
    
    11,137Euro-zone countries
    
    
    4,006
    
    
    
    3,969UK
    
    
    950
    
    
    
    1,749Other European countries
    
    
    1,866
    
    
    
    583Other regions
    
    
    8,045
    
    
    
    6,82726,177
    
    
    
    24,265
  Carrying Value
    
    
    Carrying ValueDecember 31, 2008
    
    
    December 31, 2007US$000
    
    
    US$000End-user customers
    
    
    11,404
    
    
    
    11,974Distributors
    
    
    12,623
    
    
    
    11,723Non-governmental organisations
    
    
    2,150
    
    
    
    56826,177
    
    
    
    24,265
  Impairment Losses
  Gross
    
    
    Impairment
    
    
    Gross
    
    
    ImpairmentIn thousands of US$
    
    2008
    
    
    2008
    
    
    2007
    
    
    2007Not past due
    
    
    16,916
    
    
    
    97
    
    
    
    14,288
    
    
    
    151Past due 0-30 days
    
    
    4,274
    
    
    
    15
    
    
    
    5,208
    
    
    
    65Past due 31-120 days
    
    
    2,011
    
    
    
    89
    
    
    
    3,365
    
    
    
    35Greater than 120 days
    
    
    2,380
    
    
    
    418
    
    
    
    900
    
    
    
    40625,581
    
    
    
    619
    
    
    
    23,761
    
    
    
    657
  In thousands of US$
    
    2008
    
    
    2007
    
    
    2006Balance at January 1
    
    
    657
    
    
    
    1,074
    
    
    
    587Charged to costs and expenses
    
    
    544
    
    
    
    578
    
    
    
    896Amounts recovered during the year
    
    
    (82
    )
    
    
    (190
    )
    
    
    (100
    )Amounts written off during the year
    
    
    (500
    )
    
    
    (805
    )
    
    
    (309
    )Balance at December 31
    
    
    619
    
    
    
    657
    
    
    
    1,074
   128




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 Capital Management
     
    
    the aggregate nominal value of the shares authorised to be acquired shall not exceed 10% of
the aggregate nominal value of the issued share capital of the Company at the close of
business on the date of the passing of the resolution:
 
    
    the minimum price (exclusive of taxes and expenses) which may be paid for a share shall be
the nominal value of that share:
 
    
    the maximum price (exclusive of taxes and expenses) which may be paid for a share shall not
be more than the average of the closing bid price on NASDAQ in respect of the ten business
days immediately preceding the day on which the share is purchased.
   30.
    
    ACCOUNTING ESTIMATES AND JUDGEMENTS
   Key sources of estimation uncertainty
  Critical accounting judgements in applying the Groups accounting policies
  Research and development expenditure
    129




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 Impairment of intangible assets and goodwill
   
    
    Significant underperformance relative to expected historical or projected future operating results;
 
    
    Significant changes in the manner of our use of the acquired assets or the strategy for our overall business;
 
    
    Obsolescence of products;
 
    
    Significant decline in our stock price for a sustained period; and
 
    
    Our market capitalisation relative to net book value.
  Allowance for slow-moving and obsolete inventory
  Allowance for impairment of receivables
  Accounting for income taxes
    130




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
  31.
    
    GROUP UNDERTAKINGS
  Principal Country ofincorporation andName and registered office
    
    Principal activity
    
    operation
    
    Group % holdingTrinity Biotech plc
    
    Investment and holding
    
    Ireland
    
    Holding companyIDA Business Park, Bray,
    
    companyCo. Wicklow, IrelandTrinity Biotech Manufacturing Limited
    
    Manufacture and sale of
    
    Ireland
    
    
    100
    %IDA Business Park, Bray, 
Co. Wicklow, Ireland
    
    diagnostic test kitsTrinity Research Limited
    
    Research and development
    
    Ireland
    
    
    100
    %IDA Business Park, Bray, 
Co. Wicklow, IrelandBenen Trading Limited
    
    Trading
    
    Ireland
    
    
    100
    %IDA Business Park, Bray,
Co. Wicklow, IrelandTrinity Biotech Manufacturing Services Limited
    
    Engineering services
    
    Ireland
    
    
    100
    %IDA Business Park, Bray, 
Co. Wicklow, IrelandTrinity Biotech Financial Services Limited
    
    Provision of financial
    
    Ireland
    
    
    100
    %IDA Business Park, Bray, 
Co Wicklow, Ireland
    
    servicesTrinity Biotech Inc
    
    Holding Company
    
    U.S.A.
    
    
    100
    %Girts Road, Jamestown, NY 14702,
USAClark Laboratories Inc
    
    Manufacture and sale of
    
    U.S.A.
    
    
    100
    %Trading as Trinity Biotech (USA)
    
    diagnostic test kitsGirts Road, Jamestown 
NY14702, USA
  131




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##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2008
 31.
    
    GROUP UNDERTAKINGS (Continued)
 Principal Country ofincorporation andName and registered office
    
    Principal activity
    
    operation
    
    Group % holdingMardx Diagnostics Inc
    
    Manufacture and sale of
    
    U.S.A.
    
    
    100
    %5919 Farnsworth Court Carlsbad
    
    diagnostic test kitsCA 92008, USAFitzgerald Industries International, Inc
    
    Management services company
    
    U.S.A.
    
    
    100
    %2711 Centerville Road, Suite 400
Wilmington, New Castle 
Delaware, 19808, USABiopool US Inc (trading as
    
    Sale of diagnostic test kits
    
    U.S.A.
    
    
    100
    %Trinity Biotech Distribution) Girts Road, Jamestown 
 NY14702, USAPrimus Corporation
    
    Manufacture and sale of
    
    U.S.A.
    
    
    100
    %4231 E 75th Terrace
    
    diagnostic test kits andKansas City,
    
    instrumentationMO 64132, USATrinity Biotech (UK Sales) Limited
    
    Sale of diagnostic test kits
    
    UK
    
    
    100
    %54 Queens Road 
Reading RG1 4A2, EnglandTrinity Biotech GmbH
    
    Manufacture of diagnostic
    
    Germany
    
    
    100
    %Lehbrinksweg 59,
    
    instrumentation and32657 Lemgo, Germany
    
    sale of diagnostic test kitsBiopool AB
    
    Manufacture and
    
    Sweden
    
    
    100
    %S-903 47 Umea
    
    sale of diagnostic test kitsSwedenTrinity Biotech France SARL
    
    Sale of diagnostic test kits
    
    France
    
    
    100
    %300A Rue Marcel Paul 
21 Des Grands Godets 

93 500 Champigny sur marne
France
 32.
    
    AUTHORISATION FOR ISSUE
   132




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##### Table of Contents



Signatures
  TRINITY BIOTECH PLCBy:
    RONAN OCAOIMHMr Ronan OCaoimhDirector/Chief Executive Officer
Date: April 7, 2009By:
    KEVIN TANSLEYMr Kevin TansleyCompany secretary/
Chief Financial Officer
Date: April 7, 2009  133




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##### Table of Contents



Item 19 Exhibits
 Exhibit No.
    
    Description of Exhibit12.1
    
    
    Certification by Chief Executive Officer Pursuant to Section 302 of the
Sarbanes- Oxley Act of 2002.12.2
    
    
    Certification by Chief Financial Officer Pursuant to Section 302 of the
Sarbanes- Oxley Act of 2002.13.1
    
    
    Certification by Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, As
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.13.2
    
    
    Certification by Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, As
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.15.1
    
    
    Consent of Independent Registered Public Accounting Firm (KPMG)
  134