##### 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, 2010
 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 US$0.0109)
 None
  84,116,865 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
  U.S. GAAP o
    
    International Financial
Reporting Standards as issued by
the International Accounting
Standards Board þ
    
    Other o
  o o
  o þ




---



##### 



TABLE OF CONTENTS
 PageGeneral
    
    
    1Forward-Looking Statements
    
    
    1PART 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
    
    
    44Item 8 Financial Information
    
    
    46Item 9 The Offer and Listing
    
    
    46Item 10 Additional Information
    
    
    48Item 11 Qualitative and Quantitative Disclosures about Market Risk
    
    
    59Item 12 Description of Securities other than Equity Securities
    
    
    60PART IIItem 13 Defaults, Dividend Arrangements and Delinquencies
    
    
    60Item 14 Material Modification to the Rights of Security Holders and Use of Proceeds
    
    
    60Item 15 Control and Procedures
    
    
    61Item 16A Audit Committee Financial Expert
    
    
    62Item 16B Code of Ethics
    
    
    62Item 16C Principal Accounting Fees and Services
    
    
    62Item 16D Exemptions from the Listing Requirements and Standards for Audit Committee
    
    
    62Item 16E Purchase of Equity Securities by the Issuer and Affiliated Purchasers
    
    
    63PART IIIItem 17 Consolidated Financial Statements
    
    
    63Item 18 Consolidated Financial Statements
    
    
    63Item 19 Exhibits
    
    
    131Exhibit 10cExhibit 12.1Exhibit 12.2Exhibit 13.1Exhibit 13.2Exhibit 15.1




---



##### Table of Contents



General
   
 Forward-Looking Statements
  
 Item 1 Identity of Directors, Senior Management and Advisers
  
 Item 2 Offer Statistics and Expected Timetable
  
 Item 3 Selected Consolidated Financial Data
   1




---



##### Table of Contents



CONSOLIDATED STATEMENT OF OPERATIONS DATA
 Year ended December, 312010
    
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006Total
    
    
    Total
    
    
    Total
    
    
    Total
    
    
    TotalUS$000
    
    

US$000
    
    

US$000
    
    

US$000
    
    

US$000Revenues
    
    
    89,635
    
    
    
    125,907
    
    
    
    140,139
    
    
    
    143,617
    
    
    
    118,674Cost of sales
    
    
    (45,690
    )
    
    
    (68,891
    )
    
    
    (77,645
    )
    
    
    (75,643
    )
    
    
    (62,090
    )Cost of sales  restructuring expenses
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (953
    )
    
    
    Cost of sales  inventory write off / provision
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (11,772
    )
    
    
    (5,800
    )Total cost of sales
    
    
    (45,690
    )
    
    
    (68,891
    )
    
    
    (77,645
    )
    
    
    (88,368
    )
    
    
    (67,890
    )Gross profit
    
    
    43,945
    
    
    
    57,016
    
    
    
    62,494
    
    
    
    55,249
    
    
    
    50,784Other operating income
    
    
    1,616
    
    
    
    437
    
    
    
    1,173
    
    
    
    413
    
    
    
    275Research and development expenses
    
    
    (4,603
    )
    
    
    (7,341
    )
    
    
    (7,544
    )
    
    
    (6,802
    )
    
    
    (6,696
    )Research and development  restructuring expenses
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (6,907
    )
    
    
    Total research and development expenses
    
    
    (4,603
    )
    
    
    (7,341
    )
    
    
    (7,544
    )
    
    
    (13,709
    )
    
    
    (6,696
    )Selling, general and administrative expenses
    
    
    (26,929
    )
    
    
    (36,013
    )
    
    
    (47,816
    )
    
    
    (51,010
    )
    
    
    (42,422
    )Selling, general and administrative  impairment charges and
restructuring expenses
    
    
    
    
    
    
    
    
    
    
    (87,882
    )
    
    
    (20,315
    )
    
    
    Total selling, general and administrative expenses
    
    
    (26,929
    )
    
    
    (36,013
    )
    
    
    (135,698
    )
    
    
    (71,325
    )
    
    
    (42,422
    )Net gain on divestment of business and restructuring expenses
    
    
    46,474
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Operating profit/(loss)
    
    
    60,503
    
    
    
    14,099
    
    
    
    (79,575
    )
    
    
    (29,372
    )
    
    
    1,941Financial income
    
    
    1,352
    
    
    
    8
    
    
    
    65
    
    
    
    457
    
    
    
    1,164Financial expenses
    
    
    (495
    )
    
    
    (1,192
    )
    
    
    (2,160
    )
    
    
    (3,148
    )
    
    
    (2,653
    )Net financing income/(costs)
    
    
    857
    
    
    
    (1,184
    )
    
    
    (2,095
    )
    
    
    (2,691
    )
    
    
    (1,489
    )Profit/(loss) before tax
    
    
    61,360
    
    
    
    12,915
    
    
    
    (81,670
    )
    
    
    (32,063
    )
    
    
    452Income tax (expense)/ credit
    
    
    (942
    )
    
    
    (1,091
    )
    
    
    3,892
    
    
    
    (3,309
    )
    
    
    2,824Profit/(loss) for the year (all attributable to owners of the parent)
    
    
    60,418
    
    
    
    11,824
    
    
    
    (77,778
    )
    
    
    (35,372
    )
    
    
    3,276Basic earnings/(loss) per A ordinary share (US Dollars)
    
    
    0.71
    
    
    
    0.14
    
    
    
    (0.96
    )
    
    
    (0.47
    )
    
    
    0.05Basic earnings/(loss) per B ordinary share (US Dollars)
    
    
    1.43
    
    
    
    0.28
    
    
    
    (1.91
    )
    
    
    (0.94
    )
    
    
    0.10Diluted earnings/(loss) per A ordinary share (US Dollars)
    
    
    0.70
    
    
    
    0.14
    
    
    
    (0.96
    )
    
    
    (0.47
    )
    
    
    0.05Diluted earnings/(loss) per B ordinary share (US Dollars)
    
    
    1.39
    
    
    
    0.28
    
    
    
    (1.91
    )
    
    
    (0.94
    )
    
    
    0.10Basic earnings/(loss) per ADS (US Dollars)
    
    
    2.85
    
    
    
    0.57
    
    
    
    (3.82
    )
    
    
    (1.86
    )
    
    
    0.19Diluted earnings/(loss) per ADS (US Dollars)
    
    
    2.79
    
    
    
    0.57
    
    
    
    (3.82
    )
    
    
    (1.86
    )
    
    
    0.19Weighted average number of shares used in computing basic EPS
    
    
    84,734,378
    
    
    
    83,737,884
    
    
    
    81,394,075
    
    
    
    76,036,579
    
    
    
    70,693,753Weighted average number of shares used in computing diluted EPS
    
    
    86,661,535
    
    
    
    83,772,094
    
    
    
    81,394,075
    
    
    
    76,036,579
    
    
    
    72,125,740
  2




---



##### Table of Contents



December
    
    
    December
    
    
    December
    
    
    December
    
    
    December31, 2010
    
    
    31, 2009
    
    
    31, 2008
    
    
    31, 2007
    
    
    31, 2006Consolidated Balance Sheet Data
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Net current assets (current
assets less current
liabilities)
    
    
    89,068
    
    
    
    42,835
    
    
    
    39,494
    
    
    
    36,298
    
    
    
    60,996Non-current liabilities
    
    
    (7,331
    )
    
    
    (27,500
    )
    
    
    (27,897
    )
    
    
    (35,623
    )
    
    
    (45,928
    )Total assets
    
    
    160,874
    
    
    
    132,445
    
    
    
    129,509
    
    
    
    215,979
    
    
    
    249,131Capital stock
    
    
    1,092
    
    
    
    1,080
    
    
    
    1,070
    
    
    
    991
    
    
    
    978Shareholders equity
    
    
    141,287
    
    
    
    79,344
    
    
    
    65,905
    
    
    
    136,845
    
    
    
    167,262
  Risk Factors
  Our long-term success depends upon the successful development and commercialization of new
products.
 
    
    Our long-term viability and growth will depend upon the successful discovery, development
and commercialization of other products from our research and development (R&D) activities.
We are committed to significant expenditure on R&D. However, there is no certainty that this
investment in research and development will yield technically feasible or commercially viable
products. Development of new diagnostic tests 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.
 Technological advances in the industry could render our products obsolete.
 
    
    We have invested in research and development but there can be no guarantees that our R&D
programmes will not be rendered technologically obsolete or financially non-viable by the
technological advances of our competitors, which would also adversely affect our existing
product lines and inventory. The main competitors of Trinity Biotech (and their principal
products with which Trinity Biotech competes) include Siemens (Immulite, Enzygnost®),
Inverness Medical Innovations, Inc. (Determine, Wampole, Athena), Diasorin Inc. (Liasion,
ETIMAX), Abbott Diagnostics (AxSYM, IMx), Bio-Rad (ELISA, WB, Bioplex & A1c), Roche
Diagnostics (COBAS AMPLICOR, Ampliscreen, Accutrend) and OraSure Technologies, Inc
(OraQuick ®).
 We may be unable to protect or obtain proprietary rights that we utilize or intend to utilize.
 
    
    In developing and manufacturing our products, we employ a variety of proprietary and
patented technologies. In addition, we have licensed, and expect to continue to license,
various complementary technologies and methods from academic institutions and public and
private companies. We cannot provide any assurance that the technologies that we own or
license provide protection from competitive threats or from challenges to our intellectual
property. In addition, we cannot provide any assurances that we will be successful in
obtaining licenses or proprietary or patented technologies in the future.
  3




---



##### Table of Contents



Our 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.
 Our business could be adversely affected by changing market conditions.
 
    
    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.
 Future acquisitions 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.
 Our revenues are highly dependent on a network of distributors worldwide.
 
    
    Trinity Biotech currently distributes its product portfolio through distributors in
approximately 75 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.
 Our 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 6 US patents with remaining patent lives varying from
less than one year to 16 years. In addition to these US patents, Trinity Biotech owns a
total of 5 additional non-US patents with expiration dates varying between the years 2011
and 2023.
  4




---



##### Table of Contents




    
    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 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$8,679,000) for any one accident, limited to a maximum of 6,500,000 (US$8,679,000) 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.
 Significant interruptions in production at our principal manufacturing facilities and/or
third-party manufacturing facilities would adversely affect our business and operating results.
 
    
    Products manufactured at our facilities in Bray, Ireland, Jamestown, New York, Kansas
City Missouri and Carlsbad, California comprised approximately 76% of revenues in 2010. Our
global supply of these products and services is dependent on the uninterrupted and
efficient operation of these facilities. In addition, we currently rely on a small number
of third-party manufacturers to produce certain of our diagnostic products and product
components. The operations of our facilities or these third-party manufacturing facilities
could be adversely affected by fire, power failures, natural or other disasters, such as
earthquakes, floods, or terrorist threats. Although we carry insurance to protect against
certain business interruptions at our facilities, there can be no assurance that such
coverage will be adequate or that such coverage will continue to remain available on
acceptable terms, if at all. Any significant interruption in the Groups or third-party
manufacturing capabilities could materially and adversely affect our operating results.
 We are highly dependent on our senior management team and other key employees, and the loss of one
or more of these employees could adversely affect our operations.
 
    
    Trinity Biotechs success is dependent on certain key management personnel. Our key
employees at December 31, 2010 were Ronan OCaoimh, our CEO and Chairman, Rory Nealon, our
COO, Jim Walsh, our Chief Scientific Officer and Kevin Tansley, our CFO/Company Secretary.
If such key employees were to leave and we were unable to obtain adequate replacements, our
operating results could be adversely affected.
 We are dependent on 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




---



##### Table of Contents



We could be adversely affected by healthcare reform legislation.
 
    
    Changes in government policy could have a significant impact on our business by
increasing the cost of doing business, affecting our ability to sell our products and
negatively impacting our profitability. The newly enacted Patient Protection and Affordable
Care Act imposes a new 2.3% excise tax on medical device makers beginning in 2013, which
could have a material negative impact on our results of operations and our cash flows. At
present, given the infancy of the enacted reform, we are unable to predict what effect the
legislation might ultimately have on reimbursement rates for our products. If reimbursement
amounts for diagnostic testing services are decreased in the future, such decreases may
reduce the amount that will be reimbursed to hospitals or physicians for such services and
consequently could place constraints on the levels of overall pricing, which could have a
material effect on our sales and/or results of operations. Other elements of this
legislation could meaningfully change the way healthcare is developed and delivered, and
may materially impact numerous aspects of our business.
 Global economic conditions may have a material adverse impact on our results.
 
    
    We currently generate significant operating cash flows, which combined with access to
the credit markets provides us with discretionary funding capacity for research and
development and other strategic activities. Current uncertainty in global economic
conditions poses a risk to the overall economy that could impact demand for our products,
as well as our ability to manage normal commercial relationships with our customers,
suppliers and creditors, including financial institutions. If global economic conditions
deteriorate significantly, our business could be negatively impacted, including such areas
as reduced demand for our products from a slow-down in the general economy, supplier or
customer disruptions resulting from tighter credit markets and/or temporary interruptions
in our ability to conduct day-to-day transactions through our financial intermediaries
involving the payment to or collection of funds from our customers, vendors and suppliers.
 Our sales and operations are subject to the risks of fluctuations in currency exchange rates.
 
    
    A substantial portion of our operations are in Ireland and Europe is one of our main
sales territories. As a result, changes in the exchange rate between the U.S. dollar and
the euro can have significant effects on our results of operations.
 The conversion of our outstanding employee share options and warrants would dilute the ownership
interest of existing shareholders.
 
    
    The warrants issued in 2008 and 2010 and the total share options exercisable at December
2010, 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 5,226,413 A Ordinary shares (1,306,603 ADSs) exercisable at December 31, 2010
be exercised, Trinity Biotech would have to issue 5,226,413 additional A ordinary shares
(1,306,603 ADSs). On the basis of 84,116,865 A ordinary shares outstanding at December 31,
2010, this would effectively dilute the ownership interest of the existing shareholders by
approximately 6%.
 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 recognize the United States judgement. The originating court
must have been a court of competent jurisdiction, the judgement may not be recognized 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




---



##### Table of Contents



Item 4
 Information on the Company
 History and Development of the Company
      Acquisition of the immuno-technology business of Cortex Biochem Inc
  Acquisition of certain components of the distribution business of Sterilab Services UK
  Principal Markets
    7




---



##### Table of Contents



Principal Products
   Clinical LaboratoryPoint-Of-Care
    
    Infectious Disease
    
    HbA1c + Hb Variant
    
    Clinical ChemistryUniGold
    
    Bartels®
    
    Primus
    
    EZRecombigen®
    
    CaptiaMarDx®MarBlot®MicroTrak
   Point of Care (POC)
  UniGold HIV
    The Future of Point-Of-Care at Trinity Biotech
  
    
    Sexually transmitted diseases: Building on the existing success with HIV, the products
will include rapid tests for Syphilis, Herpes simplex (HSV) 1 & 2 and HIV combination assay
(1 & 2 + Antigen)
 
    
    Enteric pathogens: Separate products for Clostridium toxin A&B, Giardia and
Cryptosporidium
 
    
    Respiratory pathogens: Flu A&B, Streptococcus pneumoniae,
 Clinical Laboratory
 in-vitro
 
    
    Infectious diseases: bacterial and viral diseases and autoimmune disorders.
 
    
    HbA1c and Hb Variant: Diabetes and Haemoglobin disorders.
 
    
    Clinical Chemistry: Liver & kidney disease and haemolytic anaemia.
  8




---



##### Table of Contents



Infectious Diseases
   HbA1c and Hb Variants
 in-vitro
 
    
    HbA1c : These products are the most accurate and precise methods available for detection
and monitoring the patient status and overall diabetic control.
 
    
    Haemoglobin Variants: The Primus Ultra2 instrument is the most accurate and
precise method for detection of haemoglobin variants which is important for screening
populations for genetic abnormalities that can lead to conditions such as Sickle Cell
Anaemia and Thalassemia.
 
    
    Neonatal Haemoglobin: The most recent addition, the GeneSys system, designed for assay
and detection of Haemoglobin variants in neo-natal screening, addresses the largest segment
of this niche area, i.e. the reference laboratories (responsible for state-wide screening
of newborns).
   Clinical Chemistry
  Sales and Marketing
   
    
    Its Clinical Chemistry product range directly to hospitals and laboratories in Germany
and France;
 
    
    All products directly to hospitals and laboratories in the UK; and
 
    
    All product lines through independent distributors and strategic partners in a further
75 countries.
  9




---



##### Table of Contents



Competition
  Patents and Licences
 Patents
   Licences
        10




---



##### Table of Contents



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




---



##### Table of Contents



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




---



##### Table of Contents



Organisational Structure
   Property, Plant and Equipment
        13




---



##### Table of Contents



Bray, Ireland
 Jamestown, New York
 Carlsbad, California
 Kansas City, Missouri
  Capital expenditures and divestitures
  
 Item 5
 Operating and Financial Review and Prospects
 Operating Results
   14




---



##### Table of Contents



Overview
  Factors affecting our results
     Critical Accounting Policies and Estimates
    Revenue Recognition
   15




---



##### Table of Contents



Research and development expenditure
    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.
    16




---



##### Table of Contents




    
    No impairment loss or reversal of impairment in the event of a 10% increase in the
growth in revenues.
 
    
    No impairment loss or reversal of impairment in the event of a 10% decrease in the
growth in revenues.
  
    
    No impairment loss or reversal of impairment in the event of a 10% decrease in the
discount rate
 
    
    No impairment loss or reversal of impairment in the event of a 10% increase in the
discount rate
 Allowance for slow-moving and obsolete inventory
   Allowance for impairment of receivables
  Accounting for income taxes
   17




---



##### Table of Contents



Share-based payments
  Share-based Payment
  Impact of Recently Issued Accounting Pronouncements
 ,
  18




---



##### Table of Contents



Subsequent Events
 Acquisition of Phoenix Bio-tech Corp.
    
    
    Consideration of US$2,500,000. US$1,000,000 was payable on closing and the
remaining US$1,500,000 is payable in four instalments in the period April 2011 to
January 2012.
 
    
    The consideration of US$2,500,000 includes acquired net working capital of
approximately US$500,000.
  
    
    A qualitative description of the factors that make up the goodwill to be recognised,
 
    
    Details of the indemnification assets,
 
    
    Details of acquired receivables,
 
    
    The amounts recognised as of the acquisition date for each major class of asset
acquired and liability assumed,
 
    
    Details of contingent liabilities recognised; and
 
    
    The total amount of goodwill that is expected to be deductible for tax purposes.
 Dividend
   19




---



##### Table of Contents



Results of Operations
 Year ended December 31, 2010 compared to the year ended December 31, 2009
 The following compares our results in the year ended December 31, 2010 to those of the year ended
December 31, 2009 under IFRS. Our analysis is divided as follows:
 1.
    
    Overview
 2.
    
    Revenues
 3.
    
    Operating Profit4.
    
    Profit for the year
 1. Overview
     Year ended December 31,2010
    
    
    2009US$000
    
    
    US$000
    
    
    %ChangeProfit before Tax
    
    
    61,360
    
    
    
    12,915Profit before Tax (2010
figure shown before net gain
on divestment of business and
restructuring expenses)
    
    
    14,886
    
    
    
    12,915
    
    
    
    15.3
    %
   2. Revenues
   20




---



##### Table of Contents



Revenues by Product Line
  Year ended December 31,2010
    
    
    2009US$000
    
    
    US$000
    
    
    % ChangeRevenuesClinical Laboratory
    
    
    73,553
    
    
    
    107,778
    
    
    
    (31.8
    %)Point of Care
    
    
    16,082
    
    
    
    18,129
    
    
    
    (11.3
    %)Total
    
    
    89,635
    
    
    
    125,907
    
    
    
    (28.8
    %)
 Clinical Laboratory
   
    
    a slower lyme season due to weather conditions in the USA;
 
    
    lower sales of antibodies and antigens by our Fitzgerald business due to the fact that
2009 sales of antibodies and antigens benefitted from the incidence of H1N1;
 
    
    the move from selling direct in France and Germany to a distribution selling model; and
 
    
    changes in exchange rates, principally the strengthening of the US Dollar against the
Euro.
   21




---



##### Table of Contents



Point of Care
   Revenues by Geographical Region
  Year ended December 31,2010
    
    
    2009US$000
    
    

US$000
    
    
    % ChangeRevenuesAmericas
    
    
    53,993
    
    
    
    68,130
    
    
    
    (21
    %)Europe
    
    
    15,890
    
    
    
    32,389
    
    
    
    (51
    %)Asia/Africa
    
    
    19,752
    
    
    
    25,388
    
    
    
    (22
    %)Total
    
    
    89,635
    
    
    
    125,907
    
    
    
    (29
    %)
      22




---



##### Table of Contents



3. Operating Profit
  Year ended December 31,2010
    
    
    2009US$000
    
    
    US$000
    
    
    %ChangeRevenues
    
    
    89,635
    
    
    
    125,907
    
    
    
    (29
    %)Cost of sales
    
    
    (45,690
    )
    
    
    (68,891
    )
    
    
    (34
    %)Gross profit
    
    
    43,945
    
    
    
    57,016
    
    
    
    (23
    %)Other operating income
    
    
    1,616
    
    
    
    437
    
    
    
    270
    %Research & development
    
    
    (4,603
    )
    
    
    (7,341
    )
    
    
    (37
    %)SG&A expenses
    
    
    (26,929
    )
    
    
    (36,013
    )
    
    
    (25
    %)Net gain on divestment of
business and restructuring
expenses
    
    
    46,474
    
    
    
    
    
    
    
    Operating profit
    
    
    60,503
    
    
    
    14,099
    
    
    
    329
    %
 Cost of sales
  Gross margin
  Other operating income
  Research and development expenses
  Selling, General & Administrative expenses (SG&A)
  Net gain on divestment of business and restructuring expenses
    23




---



##### Table of Contents



Year ended December 31,2010
    
    
    2009
    
    
    (Decrease)US$000
    
    
    US$000
    
    
    US$000
    
    
    % ChangeSG&A (excl.
share-based payments
and amortisation)
    
    
    24,260
    
    
    
    33,567
    
    
    
    (9,307
    )
    
    
    (28
    %)Share-based payments
    
    
    1,080
    
    
    
    487
    
    
    
    593
    
    
    
    122
    %Amortisation
    
    
    1,589
    
    
    
    1,959
    
    
    
    (370
    )
    
    
    (19
    %)Total
    
    
    26,929
    
    
    
    36,013
    
    
    
    (9,084
    )
    
    
    (25
    %)
 Selling General & Administrative Expenditure (excluding share-based payments and amortisation)
    Share-based payments
    Amortisation
   24




---



##### Table of Contents



4. Profit for the year
  Year ended December 31,2010
    
    
    2009US$000
    
    
    US$000
    
    
    %ChangeOperating profit
    
    
    60,503
    
    
    
    14,099
    
    
    
    329
    %Net financing income/(costs)
    
    
    857
    
    
    
    (1,184
    )
    
    
    172
    %Profit before tax
    
    
    61,360
    
    
    
    12,915
    
    
    
    375
    %Income tax expense
    
    
    (942
    )
    
    
    (1,091
    )
    
    
    (14
    %)Profit of the year
    
    
    60,418
    
    
    
    11,824
    
    
    
    411
    %
 Net Financing income/(costs)
  Taxation
  Profit for the year
   25




---



##### Table of Contents



Results of Operations
 Year ended December 31, 2009 compared to the year ended December 31, 2008
 The following compares our results in the year ended December 31, 2009 to those of the year ended
December 31, 2008 under IFRS. Our analysis is divided as follows:
 5.
    
    Overview
 6.
    
    Revenues
 7.
    
    Operating Profit/(loss)
 8.
    
    Profit/(loss) for the year
 1. Overview
     Year ended December 31,2009
    
    
    2008US$000
    
    
    US$000
    
    
    %ChangeOperating Profit/(loss)
    
    
    14,099
    
    
    
    (79,575
    )Operating Profit (2008 figure
shown before impairment and
restructuring charges)
    
    
    14,099
    
    
    
    8,307
    
    
    
    70
    %Profit/(loss) after Tax
    
    
    11,824
    
    
    
    (77,778
    )Profit after Tax (2008 figure
shown before impairment and
restructuring charges)
    
    
    11,824
    
    
    
    5,353
    
    
    
    121
    %
   26




---



##### Table of Contents



2. Revenues
    Revenues by Product Line
  Year ended December 31,2009
    
    
    2008US$000
    
    
    US$000
    
    
    % ChangeRevenuesClinical Laboratory
    
    
    107,778
    
    
    
    121,143
    
    
    
    (11
    %)Point of Care
    
    
    18,129
    
    
    
    18,996
    
    
    
    (5
    %)Total
    
    
    125,907
    
    
    
    140,139
    
    
    
    (10
    %)
 Clinical Laboratory
    27




---



##### Table of Contents



Point of Care
   Revenues by Geographical Region
  Year ended December 31,2009
    
    
    2008US$000
    
    

US$000
    
    
    % ChangeRevenuesAmericas
    
    
    68,130
    
    
    
    69,915
    
    
    
    (3
    %)Europe
    
    
    32,389
    
    
    
    43,481
    
    
    
    (26
    %)Asia/Africa
    
    
    25,388
    
    
    
    26,743
    
    
    
    (5
    %)Total
    
    
    125,907
    
    
    
    140,139
    
    
    
    (10
    %)
      28




---



##### Table of Contents



3. Operating Profit/(loss)
  Year ended December 31,2009
    
    
    2008US$000
    
    
    US$000
    
    
    %ChangeRevenues
    
    
    125,907
    
    
    
    140,139
    
    
    
    (10
    %)Cost of sales
    
    
    (68,891
    )
    
    
    (77,645
    )
    
    
    (11
    %)Gross profit
    
    
    57,016
    
    
    
    62,494
    
    
    
    (9
    %)Other operating income
    
    
    437
    
    
    
    1,173
    
    
    
    (63
    %)Research & development
    
    
    (7,341
    )
    
    
    (7,544
    )
    
    
    (3
    %)SG&A expenses
    
    
    (36,013
    )
    
    
    (47,816
    )
    
    
    (25
    %)SG&A expenses  impairment
charges and restructuring
expenses
    
    
    
    
    
    
    (87,882
    )
    
    
    (100
    %)Operating profit/(loss)
    
    
    14,099
    
    
    
    (79,575
    )
 Cost of sales
    Gross margin
  Other operating income
  Research and development expenses
  Selling, General & Administrative expenses (SG&A)
   29




---



##### Table of Contents



Year ended December 31,2009
    
    
    2008
    
    
    (Decrease)US$000
    
    
    US$000
    
    
    US$000
    
    
    % ChangeSG&A (excl.
share-based payments
and amortisation)
    
    
    33,567
    
    
    
    43,314
    
    
    
    (9,747
    )
    
    
    (23
    %)SG&A  impairment
charges and
restructuring
expenses
    
    
    
    
    
    
    87,882
    
    
    
    (87,882
    )
    
    
    (100
    %)Share-based payments
    
    
    487
    
    
    
    886
    
    
    
    (399
    )
    
    
    (45
    %)Amortisation
    
    
    1,959
    
    
    
    3,616
    
    
    
    (1,657
    )
    
    
    (46
    %)Total
    
    
    36,013
    
    
    
    135,698
    
    
    
    (99,685
    )
    
    
    (73
    %)
 Selling General & Administrative Expenditure (excluding share-based payments and amortisation)
   
    
    a cost reduction program involving a headcount reduction was announced in December 2008,
which delivered payroll cost savings in SG&A of approximately US$5,100,000 in 2009. The
headcount reduction also had the effect of reducing travel and other employee expenses by
almost US$1,000,000.
 
    
    other headcount reductions implemented in 2009 contributed to a further reduction in SG&A
payroll costs of US$700,000. These headcount reductions mainly involved the rationalisation
of the French sales and US finance functions.
 
    
    a salary reduction for directors and senior managers was implemented in early 2009 and
resulted in a cost saving of approximately US$700,000.
 
    
    a significant proportion of the Groups SG&A expenses are denominated in Euro. During 2009
the average US dollar versus Euro exchange rate was 6% lower compared to 2008 and this had
the effect of reducing SG&A expenses by about US$1,100,000. The US dollar also strengthened
versus Sterling in 2009 and this had the effect of reducing the reported SG&A costs for our
UK selling entity by just over US$350,000.
 
    
    through strict cost control the Group succeeded in reducing its selling overheads and
administrative expenses by about US$750,000 in 2009. A wide range of overhead savings were
achieved, including communications, utilities, travel costs, legal and professional fees and
recruitment fees.
 SG&A impairment charges and restructuring expenses
   Share-based payments
    30




---



##### Table of Contents



Amortisation
  4. Profit/(loss) for the year
  Year ended December 31,2009
    
    
    2008US$000
    
    
    US$000
    
    
    %ChangeOperating profit/(loss)
    
    
    14,099
    
    
    
    (79,575
    )
    
    
    118
    %Net financing costs
    
    
    (1,184
    )
    
    
    (2,095
    )
    
    
    (43
    %)Profit/(Loss) before tax
    
    
    12,915
    
    
    
    (81,670
    )
    
    
    116
    %Income tax (expense)/credit
    
    
    (1,091
    )
    
    
    3,892
    
    
    
    128
    %Profit/(Loss) of the year
    
    
    11,824
    
    
    
    (77,778
    )
    
    
    115
    %
 Net Financing Costs
  Taxation
  Profit/(loss) for the year
   31




---



##### Table of Contents



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.
  Cash management
     
    
    A decrease in accounts receivable of US$3,094,000 due to a decrease in debtors days in
the year as a result of better collections;
 
    
    An increase in inventory of US$2,826,000 due to the strategic build up of certain stock
items during the course of the year; and
 
    
    An increase in trade and other payables of US$1,574,000 due mainly to the timing of
payments to suppliers.
  32




---



##### Table of Contents




    
    Proceeds from the divestiture of the coagulation business, net of associated costs, of
US$65,886,000
 
    
    Payments to acquire intangible assets of US$6,233,000 (2009: US$8,103,000), 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$2,784,000 (2009: US$2,481,000)
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$16,000 (2009:
US$249,000).
    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$000Capital (finance) lease
obligations
    
    
    285
    
    
    
    172
    
    
    
    113
    
    
    
    
    
    
    
    Operating lease obligations
    
    
    36,556
    
    
    
    2,411
    
    
    
    4,527
    
    
    
    4,320
    
    
    
    25,298Total
    
    
    36,841
    
    
    
    2,583
    
    
    
    4,640
    
    
    
    4,320
    
    
    
    25,298
   33




---



##### Table of Contents



Impact of Currency Fluctuation
   Off-Balance Sheet Arrangements
  Leases with Related Parties
  Research & Development (R&D) carried out by third parties
   Research and Products under Development
 History
  Centres of Excellence
   34




---



##### Table of Contents



Principal Development Projects
  Total projectcosts toDecember 31,2010
    
    
    2009
    
    
    2010Product Name
    
    US$000
    
    
    US$000
    
    
    US$000Premier Hb 9210 Instrument for
Haemoglobin A1c testing
    
    
    2,569
    
    
    
    1,023
    
    
    
    4,381Destiny Max coagulation instrument*
    
    
    956
    
    
    
    3,234
    
    
    
    14,686Bordetella Pertussis Western Blot test
    
    
    337
    
    
    
    156
    
    
    
    493Tristat point of care instrument
    
    
    318
    
    
    
    1,072
    
    
    
    4,094HIV Ag-Ab rapid test
    
    
    247
    
    
    
    
    
    
    
    247Syphilis Rapid point-of-care test
    
    
    185
    
    
    
    
    
    
    
    185Unigold Recombigen HIV Rapid enhancement
    
    
    142
    
    
    
    456
    
    
    
    2,157
 *
    
    Note that this and other coagulation projects ceased in May 2010 following the
divestiture of the Coagulation Business  see Item 18, note 3.   Total costs to
    
    
    Estimated datecomplete
    
    
    for completionProduct Name
    
    US$000
    
    
    US$000Various point-of-care rapid tests
    
    
    1,400
    
    
    
    2012Premier Hb 9210 Instrument for
Haemoglobin A1c testing
    
    
    1,172
    
    
    
    2011HIV Ag-Ab rapid test
    
    
    1,000
    
    
    
    2013Syphilis Rapid point-of-care test
    
    
    750
    
    
    
    2012Unigold Recombigen HIV Rapid enhancement
    
    
    500
    
    
    
    2011IgM CAPITA
    
    
    400
    
    
    
    2012Tristat point of care instrument
    
    
    330
    
    
    
    2011
    35




---



##### Table of Contents



Point-of-Care (POC) Development Group
   Western Blot Development Group
  Pertussis Western Blot
  Clinical Chemistry Development Group
 Premier Hb 9210 Instrument for Haemoglobin A1c Testing
    
    
    Patented boronate affinity technology, therefore eliminating interference from
haemoglobin variants,
 
    
    Results available in 1 minute enabling fastest patient result turnaround times,
 
    
    State of the art software using touch screen technology to facilitate ease of use with
operators,
 
    
    Modular instrument which will significantly reduce the cost of on-site maintenance.
  36




---



##### Table of Contents



Trend Information
  
 Item 6
 Directors and Senior Management
 Directors
 Name
    
    Age
    
    
    TitleRonan OCaoimh
    

    55
    
    
    Chairman and Chief Executive OfficerRory Nealon
    

    43
    
    
    Director, Chief Operations OfficerJim Walsh, PhD
    

    52
    
    
    Director, Chief Scientific OfficerDenis R. Burger, PhD
    

    67
    
    
    Non Executive DirectorPeter Coyne
    

    51
    
    
    Non Executive DirectorClint Severson
    

    62
    
    
    Non Executive DirectorJames D. Merselis
    

    57
    
    
    Non Executive DirectorExecutive OfficerKevin Tansley
    

    40
    
    
    Chief Financial Officer & Company Secretary
 Board of Directors & Executive Officers
 Ronan OCaoimh, Chairman and Chief Executive Officer,
 Rory Nealon, Chief Operations Officer
  37




---



##### Table of Contents



Jim Walsh, PhD, Executive Director
 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
  38




---



##### Table of Contents



Compensation of Directors and Officers
   DefinedSalary/
    
    
    Performance
    
    
    contribution
    
    
    Total
    
    
    TotalBenefits
    
    
    related bonus
    
    
    pension
    
    
    2010
    
    
    2009Executive Director
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Ronan OCaoimh
    
    
    560
    
    
    
    450
    
    
    
    82
    
    
    
    1,092
    
    
    
    644Rory Nealon
    
    
    377
    
    
    
    300
    
    
    
    37
    
    
    
    714
    
    
    
    419Jim Walsh*
    
    
    77
    
    
    
    
    
    
    
    8
    
    
    
    85
    
    
    
    1,014
    
    
    
    750
    
    
    
    127
    
    
    
    1,891
    
    
    
    1,063
 Total
    
    
    TotalFees
    
    
    Other
    
    
    2010
    
    
    2009Non-executive director
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Denis R. Burger
    
    
    73
    
    
    
    
    
    
    
    73
    
    
    
    70Peter Coyne
    
    
    73
    
    
    
    
    
    
    
    73
    
    
    
    70James Merselis
    
    
    63
    
    
    
    
    
    
    
    63
    
    
    
    53Clint Severson
    
    
    63
    
    
    
    
    
    
    
    63
    
    
    
    60Jim Walsh*
    
    
    46
    
    
    
    39
    
    
    
    85
    
    
    
    60318
    
    
    
    39
    
    
    
    357
    
    
    
    313
 *
    
    Dr. Jim Walsh is included as a non-executive director of the Company up until his appointment as
Chief Scientific Officer in October 2010 and accordingly his remuneration after that point has been
categorised with the two other executive directors. DefinedSalary/
    
    
    Performance
    
    
    contribution
    
    
    Total
    
    
    TotalChief Financial
    
    Benefits
    
    
    related bonus
    
    
    pension
    
    
    2010
    
    
    2009Officer
& Company Secretary
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Kevin Tansley
    
    
    285
    
    
    
    300
    
    
    
    28
    
    
    
    613
    
    
    
    317
    39




---



##### Table of Contents



2010 Share Options Granted:
 Number of Options
    
    
    Exercise Price of
    
    
    Date of OptionDirector/Executive Officer
    
    Granted
    
    
    Options Granted
    
    
    Grant*Ronan OCaoimh
    
    800,000 A shares
    
    US$
    1.52 per A share
    
    
    21 May 2010Rory Nealon
    
    500,000 A shares
    
    US$
    1.52 per A share
    
    
    21 May 2010Denis Burger
    
    60,000 A shares
    
    US$
    1.52 per A share
    
    
    21 May 2010Peter Coyne
    
    60,000 A shares
    
    US$
    1.52 per A share
    
    
    21 May 2010Jim Walsh
    
    60,000 A shares
    
    US$
    1.52 per A share
    
    
    21 May 2010Clint Severson
    
    60,000 A shares
    
    US$
    1.52 per A share
    
    
    21 May 2010James Merselis
    
    60,000 A shares
    
    US$
    1.52 per A share
    
    
    21 May 2010Jim Walsh
    
    400,000 A shares
    
    US$
    1.57 per A share
    
    
    4 October 2010Kevin Tansley
    
    500,000 A shares
    
    US$
    1.52 per A share
    
    
    21 May 2010
 *
    
    All options issued are subject to a 7 year life from date of grant. 2009 Share Options Granted:
 Number of Options
    
    
    Exercise Price of
    
    
    Date of OptionDirector/Executive Officer
    
    Granted
    
    
    Options Granted
    
    
    Grant*Ronan OCaoimh
    
    800,000 A shares
    
    US$
    0.66 per A share
    
    
    8 May 2009Rory Nealon
    
    500,000 A shares
    
    US$
    0.66 per A share
    
    
    8 May 2009Denis Burger
    
    60,000 A shares
    
    US$
    0.66 per A share
    
    
    8 May 2009Peter Coyne
    
    60,000 A shares
    
    US$
    0.66 per A share
    
    
    8 May 2009Jim Walsh
    
    60,000 A shares
    
    US$
    0.66 per A share
    
    
    8 May 2009Clint Severson
    
    120,000 A shares
    
    US$
    0.66 per A share
    
    
    8 May 2009James Merselis
    
    120,000 A shares
    
    US$
    0.66 per A share
    
    
    8 May 2009Kevin Tansley
    
    500,000 A shares
    
    US$
    0.66 per A share
    
    
    8 May 2009
 *
    
    All options issued are subject to a 7 year life from date of grant.  Directors Service Contracts
    40




---



##### Table of Contents



Board Practices
    Employees
   Stock Option Plans
   41




---



##### Table of Contents



Number of Options
    
    
    Exercise PriceDirector/Company Secretary
    
    (A Shares)
    
    
    (Per A Share)
    
    
    Expiration Date of OptionsRonan OCaoimh
    
    
    450,000
    
    
    US$
    2.56
    
    
    26  August 2011250,000
    
    
    US$
    1.67
    
    
    2 November 2012350,000
    
    
    US$
    2.09
    
    
    13 December 2013175,000
    
    
    US$
    1.07
    
    
    18 March 201566,666
    
    
    US$
    0.74
    
    
    16 September 2015533,334
    
    
    US$
    0.66
    
    
    8 May 2016800,000
    
    
    US$
    1.52
    
    
    21 May 2017Rory Nealon
    
    
    175,000
    
    
    US$
    2.56
    
    
    26 August 2011100,000
    
    
    US$
    1.67
    
    
    2 November 2012150,000
    
    
    US$
    2.09
    
    
    13 December 2013200,000
    
    
    US$
    1.07
    
    
    18 March 2015240,000
    
    
    US$
    0.74
    
    
    16 September 2015500,000
    
    
    US$
    0.66
    
    
    8 May 2016500,000
    
    
    US$
    1.52
    
    
    21 May 2017Denis Burger
    
    
    60,000
    
    
    US$
    2.56
    
    
    26 August 201125,000
    
    
    US$
    1.67
    
    
    2 November 201225,000
    
    
    US$
    2.09
    
    
    13 December 201360,000
    
    
    US$
    0.66
    
    
    8 May 201660,000
    
    
    US$
    1.52
    
    
    21 May 2017Jim Walsh
    
    
    168,750
    
    
    US$
    2.56
    
    
    26 August 201150,000
    
    
    US$
    1.67
    
    
    2 November 201225,000
    
    
    US$
    2.09
    
    
    13 December 201360,000
    
    
    US$
    0.66
    
    
    8 May 201660,000
    
    
    US$
    1.52
    
    
    21 May 2017400,000
    
    
    US$
    1.57
    
    
    4 October 2017Peter Coyne
    
    
    60,000
    
    
    US$
    2.56
    
    
    26 August 201125,000
    
    
    US$
    1.67
    
    
    2 November 201225,000
    
    
    US$
    2.09
    
    
    13 December 201360,000
    
    
    US$
    0.66
    
    
    8 May 201660,000
    
    
    US$
    1.52
    
    
    21 May 2017Clint Severson
    
    
    120,000
    
    
    US$
    0.66
    
    
    8 May 201660,000
    
    
    US$
    1.52
    
    
    21 May 2017James Merselis
    
    
    120,000
    
    
    US$
    0.66
    
    
    8 May 201660,000
    
    
    US$
    1.52
    
    
    21 May 2017Kevin Tansley
    
    
    20,000
    
    
    US$
    2.79
    
    
    19 May 201120,000
    
    
    US$
    1.59
    
    
    16 August 201230,000
    
    
    US$
    1.78
    
    
    26 July 201375,000
    
    
    US$
    2.24
    
    
    07 March 2014150,000
    
    
    US$
    1.07
    
    
    18 March 2015150,000
    
    
    US$
    0.74
    
    
    16 September 2015333,336
    
    
    US$
    0.66
    
    
    8 May 2016500,000
    
    
    US$
    1.52
    
    
    21 May 2017
  42




---



##### Table of Contents



Number of A
    
    
    Range of
    
    
    Range ofOrdinary Shares
    
    
    Exercise Price
    
    
    Exercise PriceSubject to Option
    
    
    per Ordinary Share
    
    
    per ADSTotal options outstanding
    
    
    9,266,102
    
    
    US$
    0.66-US$4.00
    
    
    US$
    2.63-US$16.00
   43




---



##### Table of Contents



Item 7
 Major Shareholders and
Related Party Transactions
    Number of A
    
    
    Percentage
    
    
    Number of B
    
    
    Percentage
    
    
    PercentageOrdinary Shares
    
    
    Outstanding
    
    
    Ordinary Shares
    
    
    Outstanding
    
    
    TotalBeneficially
    
    
    A Ordinary
    
    
    Beneficially
    
    
    B Ordinary
    
    
    VotingOwned
    
    
    Shares
    
    
    Owned
    
    
    Shares
    
    
    PowerWilliam Blair & Company Investment Management
    
    
    11,763,664
    
    
    
    14.0
    %
    
    
    
    
    
    
    
    
    
    
    13.7
    %Goldman Capital Management, Inc.
    
    
    6,714,000
    
    
    
    8.0
    %
    
    
    
    
    
    
    
    
    
    
    7.8
    %Heartland Advisors, Inc.
    
    
    5,888,000
    
    
    
    7.0
    %
    
    
    
    
    
    
    
    
    
    
    6.9
    %Ronan OCaoimh
    
    
    4,974,995
    (1)
    
    
    5.8
    %
    
    
    
    
    
    
    
    
    
    
    5.7
    %Rory Nealon
    
    
    1,051,666
    (2)
    
    
    1.2
    %
    
    
    
    
    
    
    
    
    
    
    1.2
    %Jim Walsh
    
    
    1,657,362
    (3)
    
    
    2.0
    %
    
    
    
    
    
    
    
    
    
    
    1.9
    %Denis R. Burger
    
    
    130,000
    (4)
    
    
    0.2
    %
    
    
    
    
    
    
    
    
    
    
    0.2
    %Peter Coyne
    
    
    130,000
    (5)
    
    
    0.2
    %
    
    
    
    
    
    
    
    
    
    
    0.2
    %Clint Severson
    
    
    88,000
    (6)
    
    
    0.1
    %
    
    
    
    
    
    
    
    
    
    
    0.1
    %James Merselis
    
    
    40,000
    (7)
    
    
    0.1
    %
    
    
    
    
    
    
    
    
    
    
    0.1
    %Kevin Tansley
    
    
    353,252
    (8)
    
    
    0.4
    %
    
    
    
    
    
    
    
    
    
    
    0.4
    %Potenza Investments Inc.
    
    
    
    
    
    
    
    
    
    
    500,000
    (9)
    
    
    71.4
    %
    
    
    1.2
    %Directors & Co. Secretary as a group (8 persons)
    
    
    8,425,275
    (1)(2)(3)(4)(5)(6)(7)(8)
    
    
    9.7
    %
    
    
    
    
    
    
    
    
    
    
    9.5
    %
 (1)
    
    Includes 1,137,499 shares issuable upon exercise of options.(2)
    
    Includes 851,666 shares issuable upon exercise of options.(3)
    
    Includes 263,750 shares issuable upon exercise of options.(4)
    
    Includes 130,000 shares issuable upon exercise of options.(5)
    
    Includes 130,000 shares issuable upon exercise of options.(6)
    
    Includes 40,000 shares issuable upon exercise of options.(7)
    
    Includes 40,000 shares issuable upon exercise of options.(8)
    
    Includes 301,252 shares issuable upon exercise of options.(9)
    
    These B shares have two votes per share.  44




---



##### Table of Contents



Related Party Transactions
            45




---



##### Table of Contents



Item 8
 Financial Information
 Legal Proceedings
     
 Item 9
 The Offer and Listing
   ADSs
 Year Ended December 31
    
    High
    
    
    Low2006
    
    US$
    9.54
    
    
    US$
    7.092007
    
    US$
    11.75
    
    
    US$
    5.722008
    
    US$
    6.95
    
    
    US$
    1.252009
    
    US$
    5.70
    
    
    US$
    1.052010
    
    US$
    8.93
    
    
    US$
    3.76
  46




---



##### Table of Contents



ADSs
 2009
    
    High
    
    
    LowQuarter ended March 31
    
    US$
    2.35
    
    
    US$
    1.05Quarter ended June 30
    
    US$
    4.84
    
    
    US$
    1.50Quarter ended September 30
    
    US$
    5.70
    
    
    US$
    3.06Quarter ended December 31
    
    US$
    4.43
    
    
    US$
    3.33
 ADSs
 2010
    
    High
    
    
    LowQuarter ended March 31
    
    US$
    6.24
    
    
    US$
    3.76Quarter ended June 30
    
    US$
    6.67
    
    
    US$
    5.26Quarter ended September 30
    
    US$
    6.67
    
    
    US$
    5.71Quarter ended December 31
    
    US$
    8.93
    
    
    US$
    6.15
 ADSs
 Month Ended
    
    High
    
    
    LowMarch 31, 2010
    
    US$
    6.24
    
    
    US$
    4.71April 30, 2010
    
    US$
    6.24
    
    
    US$
    5.47May 31, 2010
    
    US$
    6.67
    
    
    US$
    5.26June 30, 2010
    
    US$
    6.60
    
    
    US$
    5.81July 31, 2010
    
    US$
    6.42
    
    
    US$
    5.79August 31, 2010
    
    US$
    6.45
    
    
    US$
    5.71September 30, 2010
    
    US$
    6.67
    
    
    US$
    5.90October 31, 2010
    
    US$
    7.16
    
    
    US$
    6.15November 30, 2010
    
    US$
    8.69
    
    
    US$
    7.04December 31, 2010
    
    US$
    8.93
    
    
    US$
    7.60January 31, 2011
    
    US$
    8.83
    
    
    US$
    8.00February 28, 2011
    
    US$
    9.19
    
    
    US$
    8.03
   47




---



##### Table of Contents



Item 10
 Memorandum and
Articles of Association
 Objects
  Powers and Duties of Directors
      Rights, Preferences and Restrictions Attaching to Shares
     48




---



##### Table of Contents



Action Necessary to Change the Rights of Shareholders
  Calling of AGMs and EGMs of Shareholders
     49




---



##### 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
     50




---



##### Table of Contents



Material Contracts
  Divestiture of Coagulation business to Diagnostica Stago SAS
   Acquisition of the immuno-technology business of Cortex Biochem Inc
   1.
    
    Trinity Biotech acquired Cortexs lists of customers and suppliers, inventory of immuno
reagents, certain accounts receivable and accounts payable balances and the Cortex Biochem
website.
 2.
    
    The vendor undertook not to compete directly with the Cortex business for a period of
three years after the sale of the business to Trinity
 3.
    
    All of the purchase consideration was payable on signing of the contract.
 Acquisition of certain components of the distribution business of Sterilab Services UK
   1.
    
    Trinity Biotech acquired a list of customers, inventory of infectious diseases and
autoimmune products and all diagnostic instruments placed with Sterilabs customers.
 2.
    
    The vendor undertook not to compete directly with Trinitys infectious disease business
in the United Kingdom for a period of one year after the sale of the Sterilab business to
Trinity.
 3.
    
    All of the purchase consideration was payable on signing of the contract.
 Exchange Controls and Other Limitations
Affecting Security Holders
   51




---



##### Table of Contents



Taxation
     US Federal Income Tax Consequences to US Holders
    52




---



##### Table of Contents



53




---



##### Table of Contents



54




---



##### Table of Contents



55




---



##### Table of Contents



Republic of Ireland Taxation
         
    
    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 the principal class of whose 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.
    56




---



##### 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.
   Disposals of Ordinary Shares or ADSs
        57




---



##### Table of Contents



58




---



##### Table of Contents



Dividend Policy
   Documents on Display
  
 Item 11
 Qualitative and Quantitative Disclosures about Market Risk
 Qualitative information about Market Risk
          59




---



##### Table of Contents



Quantitative information about Market Risk
 Interest rate sensitivity
    GroupMaturity
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    After
    
    
    
    
    
    
    FairBefore December 31
    
    2011
    
    
    2012
    
    
    2013
    
    
    2014
    
    
    2015
    
    
    2015
    
    
    Total
    
    
    valueLong-term debtVariable rate 
US$000
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Average interest rate
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Fixed rate  US$000
    
    
    162
    
    
    
    111
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    273
    
    
    
    273Average interest rate
    
    
    5.09
    %
    
    
    5.06
    %
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5.08
    %
    
    
    5.08
    %
 Exchange rate sensitivity
   
 Item 12
 Description of Securities Other than Equity Securities
  
 Part II
 
 Item 13
 Defaults, Dividend Arrearages and Delinquencies
  
 Item 14
 Material Modifications to the Rights of Security Holders and Use of Proceeds
   60




---



##### Table of Contents



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
   61




---



##### 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,
    
    
    Year ended December 31,2010
    
    
    2009US$000
    
    
    %
    
    
    US$000
    
    
    %Audit
    
    
    694
    
    
    
    95
    %
    
    
    625
    
    
    
    89
    %Audit-related
    
    
    8
    
    
    
    1
    %
    
    
    6
    
    
    
    1
    %Tax
    
    
    32
    
    
    
    4
    %
    
    
    70
    
    
    
    10
    %Total
    
    
    734
    
    
    
    
    
    
    
    701
  Pre-Approval Policies and Procedures
   
 16D Exemptions from the Listing Requirements and Standards for Audit Committee
   62




---



##### Table of Contents



16 E Purchase of Equity Securities by the Issuer and Affiliated Purchasers
  
 Part III
 
 Item 17
 Financial Statements
  
 Item 18
 Financial Statements
  63




---



##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
  Internal Control  Integrated Framework
    Internal Control
 Integrated Framework
   
  64




---



##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
     Internal Control  Integrated Framework
 
  65




---



##### Table of Contents



CONSOLIDATED STATEMENTS OF OPERATIONS
 Year ended December, 312010
    
    
    2009
    
    
    2008Total
    
    
    Total
    
    
    TotalNotes
    

US$000
    
    
    US$000
    
    
    US$000Revenues
    
    2
    
    
    89,635
    
    
    
    125,907
    
    
    
    140,139Cost of sales
    
    
    
    
    (45,690
    )
    
    
    (68,891
    )
    
    
    (77,645
    )Gross profit
    
    
    
    
    43,945
    
    
    
    57,016
    
    
    
    62,494Other operating income
    
    5
    
    
    1,616
    
    
    
    437
    
    
    
    1,173Research and development expenses
    
    
    
    
    (4,603
    )
    
    
    (7,341
    )
    
    
    (7,544
    )Selling, general and administrative expenses
    
    
    
    
    (26,929
    )
    
    
    (36,013
    )
    
    
    (47,816
    )Selling, general and administrative  impairment
charges and restructuring expenses
    
    28
    
    
    
    
    
    
    
    
    
    
    (87,882
    )Total selling, general and administrative expenses
    
    
    
    
    (26,929
    )
    
    
    (36,013
    )
    
    
    (135,698
    )Net gain on divestment of business and restructuring
expenses
    
    3
    
    
    46,474
    
    
    
    
    
    
    
    Operating profit/(loss)
    
    
    
    
    60,503
    
    
    
    14,099
    
    
    
    (79,575
    )Financial income
    
    2, 4
    
    
    1,352
    
    
    
    8
    
    
    
    65Financial expenses
    
    2, 4
    
    
    (495
    )
    
    
    (1,192
    )
    
    
    (2,160
    )Net financing income/(costs)
    
    
    
    
    857
    
    
    
    (1,184
    )
    
    
    (2,095
    )Profit/(loss) before tax
    
    6
    
    
    61,360
    
    
    
    12,915
    
    
    
    (81,670
    )Total income tax (expense)/credit
    
    2, 9
    
    
    (942
    )
    
    
    (1,091
    )
    
    
    3,892Profit/(loss) for the year (all attributable to
owners of the parent)
    
    2
    
    
    60,418
    
    
    
    11,824
    
    
    
    (77,778
    )Basic earnings/(loss) per ordinary share (US Dollars)
    
    10
    
    
    0.71
    
    
    
    0.14
    
    
    
    (0.96
    )Basic earnings/(loss) per B ordinary share (US
Dollars)
    
    10
    
    
    1.43
    
    
    
    0.28
    
    
    
    (1.91
    )Diluted earnings/(loss) per ordinary share (US
Dollars)
    
    10
    
    
    0.70
    
    
    
    0.14
    
    
    
    (0.96
    )Diluted earnings/(loss) per B ordinary share (US
Dollars)
    
    10
    
    
    1.39
    
    
    
    0.28
    
    
    
    (1.91
    )Basic earnings/(loss) per ADS (US Dollars)
    
    10
    
    
    2.85
    
    
    
    0.57
    
    
    
    (3.82
    )Diluted earnings/(loss) per ADS (US Dollars)
    
    10
    
    
    2.79
    
    
    
    0.57
    
    
    
    (3.82
    )
  66




---



##### Table of Contents



CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
 Year ended December 31,2010
    
    
    2009
    
    
    2008Notes
    
    
    US$000
    
    
    US$000
    
    
    US$000Profit/(loss) for the year
    
    
    2
    
    
    
    60,418
    
    
    
    11,824
    
    
    
    (77,778
    )Other comprehensive income:Foreign exchange translation differences
    
    
    
    
    
    
    (750
    )
    
    
    215
    
    
    
    (806
    )Cash flow hedges:Effective portion of changes in fair value
    
    
    
    
    
    
    70
    
    
    
    (31
    )
    
    
    (252
    )Deferred tax on income and expenses
recognised directly in equity
    
    
    
    
    
    
    6
    
    
    
    3
    
    
    
    26Other comprehensive income
    
    
    
    
    
    
    (674
    )
    
    
    187
    
    
    
    (1,032
    )Total Comprehensive Income (all
attributable to owners of the parent)
    
    
    
    
    
    
    59,744
    
    
    
    12,011
    
    
    
    (78,810
    )
  67




---



##### Table of Contents



CONSOLIDATED BALANCE SHEETS
 December 31,
    
    
    December 31,2010
    
    
    2009Notes
    
    US$000
    
    
    US$000ASSETSNon-current assetsProperty, plant and equipment
    
    11
    
    
    5,999
    
    
    
    12,174Goodwill and intangible assets
    
    12
    
    
    37,248
    
    
    
    44,822Deferred tax assets
    
    13
    
    
    4,680
    
    
    
    5,801Other assets
    
    14
    
    
    11,623
    
    
    
    1,212Total non-current assets
    
    
    
    
    59,550
    
    
    
    64,009Current assetsInventories
    
    15
    
    
    17,576
    
    
    
    39,198Trade and other receivables
    
    16
    
    
    25,529
    
    
    
    22,931Income tax receivable
    
    
    
    
    217
    
    
    
    229Cash and cash equivalents
    
    17
    
    
    58,002
    
    
    
    6,078Total current assets
    
    
    
    
    101,324
    
    
    
    68,436TOTAL ASSETS
    
    2
    
    
    160,874
    
    
    
    132,445EQUITY AND LIABILITIESEquity attributable to the equity holders of the parentShare capital
    
    
    
    
    1,092
    
    
    
    1,080Share premium
    
    
    
    
    161,599
    
    
    
    160,683Accumulated deficit
    
    
    
    
    (25,412
    )
    
    
    (87,070
    )Translation reserve
    
    
    
    
    (544
    )
    
    
    206Other reserves
    
    
    
    
    4,552
    
    
    
    4,445Total equity
    
    
    
    
    141,287
    
    
    
    79,344Current liabilitiesInterest-bearing loans and borrowings
    
    20
    
    
    162
    
    
    
    12,625Derivative financial instruments
    
    27
    
    
    
    
    
    
    58Income tax payable
    
    
    
    
    597
    
    
    
    24Trade and other payables
    
    21
    
    
    11,447
    
    
    
    12,844Provisions
    
    22
    
    
    50
    
    
    
    50Total current liabilities
    
    
    
    
    12,256
    
    
    
    25,601Non-current liabilitiesInterest-bearing loans and borrowings
    
    20
    
    
    111
    
    
    
    19,231Other payables
    
    23
    
    
    30
    
    
    
    59Deferred tax liabilities
    
    13
    
    
    7,190
    
    
    
    8,210Total non-current liabilities
    
    
    
    
    7,331
    
    
    
    27,500TOTAL LIABILITIES
    
    2
    
    
    19,587
    
    
    
    53,101TOTAL EQUITY AND LIABILITIES
    
    
    
    
    160,874
    
    
    
    132,445
  68




---



##### Table of Contents



STATEMENT OF CHANGES IN EQUITY
 Share
    
    
    Sharecapital
    
    
    capital
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (AccumulatedA
    
    
    B
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    deficit)/ordinary
    
    
    ordinary
    
    
    Share
    
    
    Translation
    
    
    Warrant
    
    
    Hedging
    
    
    retainedshares
    
    
    shares
    
    
    premium
    
    
    reserve
    
    
    reserve
    
    
    reserves
    
    
    earnings
    
    
    TotalUS$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Balance at January 1, 2008
    
    
    979
    
    
    
    12
    
    
    
    153,961
    
    
    
    797
    
    
    
    3,803
    
    
    
    201
    
    
    
    (22,908
    )
    
    
    136,845Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (806
    )
    
    
    
    
    
    
    (226
    )
    
    
    (77,778
    )
    
    
    (78,810
    )Share-based payments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,193
    
    
    
    1,193Options exercised
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    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
    )
    
    
    65,905Balance at January 1, 2009
    
    
    1,058
    
    
    
    12
    
    
    
    159,864
    
    
    
    (9
    )
    
    
    4,498
    
    
    
    (25
    )
    
    
    (99,493
    )
    
    
    65,905Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    215
    
    
    
    
    
    
    
    (28
    )
    
    
    11,824
    
    
    
    12,011Share-based payments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    599
    
    
    
    599Options exercised
    
    
    10
    
    
    
    
    
    
    
    887
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    897Share issue expenses
    
    
    
    
    
    
    
    
    
    
    (68
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (68
    )Balance at December 31, 2009
    
    
    1,068
    
    
    
    12
    
    
    
    160,683
    
    
    
    206
    
    
    
    4,498
    
    
    
    (53
    )
    
    
    (87,070
    )
    
    
    79,344Balance at January 1, 2010
    
    
    1,068
    
    
    
    12
    
    
    
    160,683
    
    
    
    206
    
    
    
    4,498
    
    
    
    (53
    )
    
    
    (87,070
    )
    
    
    79,344Total comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (750
    )
    
    
    
    
    
    
    76
    
    
    
    60,418
    
    
    
    59,744Share-based payments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,240
    
    
    
    1,240Options exercised
    
    
    12
    
    
    
    
    
    
    
    1,011
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,023Share issue expenses
    
    
    
    
    
    
    
    
    
    
    (64
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (64
    )Fair Value of Warrants issued during the year
    
    
    
    
    
    
    
    
    
    
    (31
    )
    
    
    
    
    
    
    31
    
    
    
    
    
    
    
    
    
    
    
    Balance at December 31, 2010
    
    
    1,080
    
    
    
    12
    
    
    
    161,599
    
    
    
    (544
    )
    
    
    4,529
    
    
    
    23
    
    
    
    (25,412
    )
    
    
    141,287
  69




---



##### Table of Contents



CONSOLIDATED STATEMENT OF CASH FLOWS
 Year ended December 31,2010
    
    
    2009
    
    
    2008Notes
    
    US$000
    
    
    US$000
    
    
    US$000Cash flows from operating activitiesProfit/(loss) for the year
    
    
    
    
    60,418
    
    
    
    11,824
    
    
    
    (77,778
    )Adjustments to reconcile net profit to cash provided
by operating activities:Depreciation
    
    
    
    
    1,230
    
    
    
    1,786
    
    
    
    4,425Amortisation
    
    
    
    
    1,589
    
    
    
    1,959
    
    
    
    3,616Income tax expense/(credit)
    
    
    
    
    942
    
    
    
    1,091
    
    
    
    (3,892
    )Financial income
    
    
    
    
    (1,352
    )
    
    
    (8
    )
    
    
    (65
    )Financial expense
    
    
    
    
    495
    
    
    
    1,192
    
    
    
    2,160Share-based payments
    
    
    
    
    1,109
    
    
    
    521
    
    
    
    1,166Foreign exchange losses on operating cash flows
    
    
    
    
    351
    
    
    
    109
    
    
    
    77Loss/(profit) on disposal / retirement of property,
plant and equipment
    
    
    
    
    12
    
    
    
    66
    
    
    
    (682
    )Impairment of assets
    
    28
    
    
    
    
    
    
    
    
    
    
    85,793Gain on divestment of business
    
    3
    
    
    (46,775
    )
    
    
    
    
    
    
    Other non-cash items
    
    
    
    
    3,112
    
    
    
    1,158
    
    
    
    871Operating cash flows before changes in working capital
    
    
    
    
    21,131
    
    
    
    19,698
    
    
    
    15,691Decrease/(increase) in trade and other receivables
    
    
    
    
    3,094
    
    
    
    3,872
    
    
    
    (4,131
    )(Increase)/decrease in inventories
    
    
    
    
    (2,826
    )
    
    
    2,372
    
    
    
    2,062Increase/(decrease) in trade and other payables
    
    
    
    
    1,574
    
    
    
    (10,409
    )
    
    
    (676
    )Cash generated from operations
    
    
    
    
    22,973
    
    
    
    15,533
    
    
    
    12,946Interest paid
    
    
    
    
    (503
    )
    
    
    (883
    )
    
    
    (2,639
    )Interest received
    
    
    
    
    842
    
    
    
    12
    
    
    
    63Income taxes (paid)/received
    
    
    
    
    (239
    )
    
    
    70
    
    
    
    359Net cash generated by operating activities
    
    
    
    
    23,073
    
    
    
    14,732
    
    
    
    10,729Cash flows from investing activitiesProceeds from divestiture of coagulation business (net)
    
    
    
    
    65,886
    
    
    
    
    
    
    
    Deferred consideration to acquire subsidiaries and
businesses
    
    
    
    
    
    
    
    
    
    
    
    
    (2,802
    )Payments to acquire intangible assets
    
    
    
    
    (6,233
    )
    
    
    (8,103
    )
    
    
    (8,981
    )Proceeds from disposal of property, plant and equipment
    
    
    
    
    16
    
    
    
    249
    
    
    
    808Acquisition of property, plant and equipment
    
    
    
    
    (2,784
    )
    
    
    (2,481
    )
    
    
    (3,713
    )Net cash generated by/(used in) investing activities
    
    
    
    
    56,885
    
    
    
    (10,335
    )
    
    
    (14,688
    )Cash flows from financing activitiesProceeds from issue of ordinary share capital
    
    
    
    
    1,023
    
    
    
    897
    
    
    
    7,116Proceeds from borrowings, long-term debt
    
    
    
    
    
    
    
    
    307
    
    
    
    Expenses
paid in connection with share issue and debt financing
    
    
    
    
    (74
    )
    
    
    (68
    )
    
    
    (624
    )Repayment of long-term debt
    
    
    
    
    (29,775
    )
    
    
    (5,400
    )
    
    
    (5,224
    )Proceeds from new finance leases
    
    
    
    
    1,480
    
    
    
    1,298
    
    
    
    Payment of finance lease liabilities
    
    
    
    
    (638
    )
    
    
    (546
    )
    
    
    (787
    )Net cash (used in)/generated by financing activities
    
    
    
    
    (27,984
    )
    
    
    (3,512
    )
    
    
    481Increase/(decrease) in cash and cash equivalents
    
    
    
    
    51,974
    
    
    
    885
    
    
    
    (3,478
    )Effects of exchange rate movements on cash held
    
    
    
    
    (50
    )
    
    
    9
    
    
    
    (38
    )Cash and cash equivalents at beginning of year
    
    
    
    
    6,078
    
    
    
    5,184
    
    
    
    8,700Cash and cash equivalents at end of year
    
    17
    
    
    58,002
    
    
    
    6,078
    
    
    
    5,184
  70




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2010
 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 2010.
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.
 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.
  71




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2010
 1.
    
    BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 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
    
    5-15 years
    
    Office equipment and fittings
    
    10 years
    
    Buildings
    
    50 years
    
    Computer equipment
    
    3-5 years
    
    Plant and equipment
    
    5-15 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.
  72




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2010
 1.
    
    BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 e)
    
    Business combinations
 All business combinations are accounted for by applying the acquisition method.
 The revised standard on business combinations (IFRS 3R) introduced major changes to the accounting
requirements for business combinations. It retains the major features of the purchase method of
accounting, now referred to as the acquisition method. The most significant changes in IFRS 3R that
impact the Group are as follows:
 
    
    acquisition-related costs of the combination are recorded as an expense in the income statement.
Previously, these costs would have been accounted for as part of the cost of the acquisition
 
    
    any contingent consideration is measured at fair value at the acquisition date. If the contingent
consideration arrangement gives rise to a financial liability, any subsequent changes are generally
recognised in profit or loss. Previously, contingent consideration was recognised only once its
payment was probable and changes were recognised as an adjustment to goodwill
 
    
    the measurement of assets acquired and liabilities assumed at their acquisition-date fair values
is retained. However, IFRS 3R includes certain exceptions and provides specific measurement rules.
 IFRS 3R has been applied prospectively to business combinations for which the acquisition date is
on or after 1 January 2010. Business combinations for which the acquisition date is before 1
January 2010 have not been restated and were accounted for by applying the purchase method.
 f)
    
    Goodwill
 In 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.
 The technical feasibility of a new product is determined by a specific feasibility study
undertaken at the first stage of any development project. The majority of our new product
developments involve the transfer of existing product know-how to a new application. Since the
technology is already proven in an existing product which is being used by customers, this
facilitates the proving of the technical feasibility of that same technology in a new product. The
results
of the feasibility study are reviewed by a design review committee comprising senior managers.
The feasibility study occurs in the initial research phase of a project and costs in this
phase are not capitalized.
  73




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2010
 1.
    
    BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 The commercial feasibility of a new product is determined by preparing a discounted cash flow
projection. This projection compares the discounted sales revenues for future periods with the
relevant costs. As part of preparing the cash flow projection, the size of the relevant market is
determined, feedback is sought from customers and the strength of the proposed new product is
assessed against competitors offerings. Once the technical and commercial feasibility has been
established and the project has been approved for commencement, the project moves into the
development phase.
 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.Research and development
 Expenditure 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.
 Amortisation
 Amortisation 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
 The Group uses a useful economic life of 15 years for capitalized development costs. This is a
conservative estimate of the likely life of the products. The Group is confident that products have
a minimum of 15 years life given the inertia that characterizes the medical diagnostics industry
and the barriers to entry into the industry. The following factors have been considered in
estimating the useful life of developed products:
 (a)
    
    once a diagnostic test becomes established, customers are reluctant to change to new
technology until it is fully proven, thus resulting in relatively long product life cycles.
There is also reluctance in customers to change to a new product as it can be costly both in
terms of the initial changeover cost and as new technology is typically more expensive.
 (b)
    
    demand for the diagnostic tests is enduring and robust within a wide geographic base. The
diseases that the products diagnose are widely prevalent (HIV, diabetes and Chlamydia being
just three examples) in many countries. There is a general consensus that these diseases
will continue to be widely prevalent in the future.
 (c)
    
    there are significant barriers to new entrants in this industry. Patents and/or
licenses are in place for many of our products, though this is not the only
barrier to entry. There is a significant cost and time to develop new
products, it is necessary to obtain regulatory approval and tests are protected by
proprietary know-how, manufacturing techniques and trade secrets.
  74




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2010
 1.
    
    BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 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)
    
    Impairment
 The 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, 2008, December 31, 2009 and December 2010. 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.
 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)
    
    Inventories
 Inventories 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.
  75




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2010
 1.
    
    BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 j)
    
    Trade and other receivables
 Trade 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 equivalents
 Cash and cash equivalents comprise cash balances and short-term deposits with a maturity of six
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 notes
 Under 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.
 n)
    
    Share-based payments
 For 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.
 The share options issued by the Group are not subject to market-based vesting conditions as
defined in IFRS 2, Share-based Payment. 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 grants
 Grants 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.
  76




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2010
 1.
    
    BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 p)
    
    Revenue recognitionGoods sold and services rendered
 Revenue 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, consistent with our typical ex-works shipment terms.
Where the shipment terms do not permit revenue to be recognised as of the date of shipment, revenue
is recognised when the Group has satisfied all of its obligations to the customer in accordance
with the shipping terms. 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 income
 Rental 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.
 Other operating income also comprises income derived from the Transitional Services Agreement (TSA)
which the Group entered into with Diagnostica Stago in 2010. The services provided by the Group
under the TSA mainly include: accounting, information technology and logistics support and
warehousing services. This income is not treated as revenue since the TSA activities are
incidental to the main revenue-generating activities of the Group.
 q)
    
    Employee benefitsDefined contribution plans
 The 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.Other long-term benefits
 Where 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 benefits
 Termination 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.
  77




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2010
 1.
    
    BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 r)
    
    Foreign currency
 A 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 changes in equity.
 Where Euro or Sterling amounts have been referenced in this document, their corresponding US Dollar
equivalent has also been included and these equivalents have been calculated with reference to the
foreign exchange rates prevailing at December 31, 2010.
 s)
    
    Derivative financial instruments
 The 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.
 t)
    
    Segment reporting
 Operating segments are reported in a manner consistent with the internal reporting provided to the
chief operating decision-maker. The chief operating decision-maker, who is responsible for
allocating resources and assessing performance of the operating segments, has been identified as
the Board of Directors.
 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.
  78




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2010
 1.
    
    BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 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. Deferred tax assets are recognised when it is probable that future taxable profits will be
available to utilize the associated losses or temporary differences. 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; and
 ii.
    
    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)
    
    Provisions
 A 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 sales
 Cost 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 costs
 Financing 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.
 Finance income includes interest income on deposits and is recognised in the statement of
operations as it accrues, using the effective interest method. Finance income also includes
interest on the deferred consideration due to the Group as part of the divestiture of the
Coagulation business in 2010.
 y)
    
    Warrant reserve
 The 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.
  79




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2010
 1.
    
    BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 z)
    
    New IFRS Standards and Interpretations not applied
 The IASB and IFRIC have issued additional standards and interpretations which are effective for
periods starting on or after January 1, 2010, 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 1
    
    First-time Adoption of
International Financial Reporting
Standards  Limited Exemption
from Comparative IFRS 7
Disclosures for First-time
Adopters
    
    July 1, 2010 (not
yet adopted by the
EU)IAS 24
    
    Related Party Disclosures (Revised)
    
    January 1, 2011
(not yet adopted by
the EU)IAS 32
    
    Financial Instruments:
Presentation  Classification of
Rights Issues (Amendment)
    
    February 1, 2010
(not yet adopted by
the EU)
 International Financial Reporting Interpretations Committee (IFRIC)IFRIC 14
    
    Prepayments of a Minimum Funding Requirement (Amendment)
    
    January 1, 2011
(not yet adopted by
the EU)IFRIC 19
    
    Extinguishing Financial Liabilities with Equity Instruments
    
    July 1, 2010 (not
yet 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.
 Standards, amendments and
interpretations to existing standards that are not yet effective and have not
been adopted early by the Group.
 At the date of
authorisation of these financial statements, certain new standards, amendments
and interpretations to existing standards have been published but are not yet
effective, and have not been adopted early by the Group.
 Management
anticipates that all of the relevant pronouncements will be adopted in the
Group’s accounting policies for the first period beginning after the
effective date of the pronouncement. Information on new standards, amendments
and interpretations that are expected to be relevant to the Group’s
financial statements is provided below. Certain other new standards and
interpretations have been issued but are not expected to have a material impact
on the Group’s financial statements.
 Annual Improvements 2010
(effective from 1 July 2010 and later)
 The IASB has
issued Improvements to IFRS 2010 (2010 Improvements). Most of these amendments
become effective in annual periods beginning on or after 1 July 2010 or 1
January 2011. The 2010 Improvements amend certain provisions of IFRS 3R,
clarify presentation of the reconciliation of each of the components of other
comprehensive income and clarify certain disclosure requirements for financial
instruments. The Group’s preliminary assessments indicate that the 2010
Improvements will not have a material impact on the Group’s financial
statements.
 IFRS 9
Financial Instruments (effective from 1 January 2013)
 The IASB aims to
replace IAS 39 Financial Instruments: Recognition and Measurement in its
entirety. The replacement standard (IFRS 9) is being issued in phases. To date,
the chapters dealing with recognition, classification, measurement and
derecognition of financial assets and liabilities have been issued. These
chapters are effective for annual periods beginning 1 January 2013.
Further chapters dealing with impairment methodology and hedge accounting are
still being developed.
 Management have
yet to assess the impact that this amendment is likely to have on the financial
statements of the Group. However, they do not expect to implement the
amendments until all chapters of IFRS 9 have been published and they can
comprehensively assess the impact of all changes
  80




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2010
 2.
    
    SEGMENT INFORMATIONOperating segments are reported in a manner consistent with the internal reporting provided to the
chief operating decision-maker. The chief operating decision-maker, who is responsible for
allocating resources and assessing the performance of the operating segments, has been identified
as the Board of Directors. Management has determined the operating segments based on the reports reviewed by the Board of
Directors, which are used to make strategic decisions. The Board considers the business from a
geographic perspective 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 year 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.The 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 as is
consistent with the information used by the Board of Directors. The reportable operating segments derive their revenue primarily from one source (i.e. 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, 2010
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Revenue from external customers
    
    
    37,643
    
    
    
    45,642
    
    
    
    6,350
    
    
    
    
    
    
    
    89,635Inter-segment revenue
    
    
    21,786
    
    
    
    12,154
    
    
    
    7,101
    
    
    
    (41,041
    )
    
    
    Total revenue
    
    
    59,429
    
    
    
    57,796
    
    
    
    13,451
    
    
    
    (41,041
    )
    
    
    89,635
 Rest of WorldAmericas
    
    
    Ireland
    
    
    Other
    
    
    Eliminations
    
    
    TotalYear ended December 31, 2009
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Revenue from external customers
    
    
    46,286
    
    
    
    65,529
    
    
    
    14,092
    
    
    
    
    
    
    
    125,907Inter-segment revenue
    
    
    25,527
    
    
    
    20,843
    
    
    
    9,588
    
    
    
    (55,958
    )
    
    
    Total revenue
    
    
    71,813
    
    
    
    86,372
    
    
    
    23,680
    
    
    
    (55,958
    )
    
    
    125,907
 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
 b)
    
    The distribution of revenue by customers geographical area was as follows:
 December 31, 2010
    
    
    December 31, 2009
    
    
    December 31, 2008Revenue
    
    US$000
    
    
    US$000
    
    
    US$000Americas
    
    
    53,993
    
    
    
    68,130
    
    
    
    69,915Europe (including Ireland) *
    
    
    15,890
    
    
    
    32,389
    
    
    
    43,481Asia / Africa
    
    
    19,752
    
    
    
    25,388
    
    
    
    26,74389,635
    
    
    
    125,907
    
    
    
    140,139
 *
    
    Revenue for customers in Ireland is not disclosed separately due to the immateriality of these
revenues.  81




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2010
 2.
    
    SEGMENT INFORMATION (CONTINUED)
 c)
    
    The distribution of revenue by major product group was as follows:
 December 31, 2010
    
    
    December 31, 2009
    
    
    December 31, 2008Revenue
    
    US$000
    
    
    US$000
    
    
    US$000Clinical laboratory
    
    
    73,553
    
    
    
    107,778
    
    
    
    121,143Point of care
    
    
    16,082
    
    
    
    18,129
    
    
    
    18,99689,635
    
    
    
    125,907
    
    
    
    140,139
 d)
    
    The distribution of segment results by geographical area was as follows:Year ended December 31, 2010
 Rest of WorldAmericas
    
    
    Ireland
    
    
    Other
    
    
    TotalUS$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Result before Gain on Sale and Restructuring
    
    
    7,103
    
    
    
    4,912
    
    
    
    2,600
    
    
    
    14,615Net gain on divestment of business and
restructuring expenses (note 3)
    
    
    5,745
    
    
    
    32,918
    
    
    
    7,811
    
    
    
    46,474Result after Gain on Sale and Restructuring
    
    
    12,848
    
    
    
    37,830
    
    
    
    10,411
    
    
    
    61,089Unallocated expenses *
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (586
    )Operating profit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    60,503Net financing income (note 4)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    857Profit before tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    61,360Income tax expense (note 9)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (942
    )Profit for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    60,418
 Year ended December 31, 2009
 Rest of WorldAmericas
    
    
    Ireland
    
    
    Other
    
    
    TotalUS$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Result
    
    
    9,073
    
    
    
    7,004
    
    
    
    (1,211
    )
    
    
    14,866Unallocated expenses *
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (767
    )Operating profit
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14,099Net financing costs (note 4)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,184
    )Profit before tax
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    12,915Income tax expense (note 9)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,091
    )Profit for the year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    11,824
 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 28)
    
    
    (17,645
    )
    
    
    (66,152
    )
    
    
    (1,996
    )
    
    
    (85,793
    )Restructuring expenses (note 28)
    
    
    (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
    )
 *
    
    Unallocated expenses represent head office general and administration costs of the Group which
cannot be allocated to the results of any specific geographical area.  82




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2010
 2.
    
    SEGMENT INFORMATION (CONTINUED)
 e)
    
    The distribution of segment assets and segment liabilities by geographical area was as
follows:
 As at December 31, 2010
 Rest of WorldAmericas
    
    
    Ireland
    
    
    Other
    
    
    TotalUS$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Assets and liabilitiesSegment assets
    
    
    36,726
    
    
    
    61,249
    
    
    
    
    
    
    
    97,975Unallocated assets:Income tax assets (current and deferred)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,897Cash and cash equivalents
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    58,002Total assets as reported in the Group balance sheet
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    160,874Segment liabilities
    
    
    2,315
    
    
    
    9,212
    
    
    
    
    
    
    
    11,527Unallocated liabilities:Income tax liabilities (current and deferred)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    7,787Interest-bearing loans and borrowings (current and
non-current)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    273Total liabilities as reported in the Group balance
sheet
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    19,587
 As at December 31, 2009
 Rest of WorldAmericas
    
    
    Ireland
    
    
    Other
    
    
    TotalUS$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Assets and liabilitiesSegment assets
    
    
    37,355
    
    
    
    65,693
    
    
    
    17,289
    
    
    
    120,337Unallocated assets:Income tax assets (current and deferred)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,030Cash and cash equivalents
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,078Total assets as reported in the Group balance sheet
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    132,445Segment liabilities
    
    
    2,695
    
    
    
    7,749
    
    
    
    2,567
    
    
    
    13,011Unallocated liabilities:Income tax liabilities (current and deferred)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,234Interest-bearing loans and borrowings (current and
non-current)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    31,856Total liabilities as reported in the Group balance
sheet
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    53,101
 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 and deferred
consideration), by geographical area was as follows:
 December 31, 2010
    
    
    December 31, 2009US$000
    
    
    US$000Rest of World  Ireland
    
    
    27,433
    
    
    
    38,756Rest of World  Other
    
    
    
    
    
    
    6,815Americas
    
    
    16,299
    
    
    
    12,63743,732
    
    
    
    58,208
  83




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2010
 2.
    
    SEGMENT INFORMATION (CONTINUED)
 g)
    
    The distribution of depreciation and amortisation by geographical area was as follows:
 December 31, 2010
    
    
    December 31, 2009
    
    
    December 31, 2008US$000
    
    
    US$000
    
    
    US$000Depreciation:Rest of World  Ireland
    
    
    276
    
    
    
    325
    
    
    
    1,799Rest of World  Other
    
    
    296
    
    
    
    900
    
    
    
    1,149Americas
    
    
    658
    
    
    
    561
    
    
    
    1,4771,230
    
    
    
    1,786
    
    
    
    4,425Amortisation:Rest of World  Ireland
    
    
    1,475
    
    
    
    1,712
    
    
    
    3,113Rest of World  Other
    
    
    55
    
    
    
    169
    
    
    
    206Americas
    
    
    59
    
    
    
    78
    
    
    
    2971,589
    
    
    
    1,959
    
    
    
    3,616
 h)
    
    The distribution of share-based payment expense by geographical area was as follows:
 December 31, 2010
    
    
    December 31, 2009
    
    
    December 31, 2008US$000
    
    
    US$000
    
    
    US$000Rest of World  Ireland
    
    
    1,032
    
    
    
    470
    
    
    
    996Rest of World  Other
    
    
    1
    
    
    
    17
    
    
    
    38Americas
    
    
    76
    
    
    
    34
    
    
    
    1321,109
    
    
    
    521
    
    
    
    1,166
 See note 19 for further information on share-based payments.
 i)
    
    The distribution of impairment & restructuring expenses by geographical area was as follows:
 December 31, 2010
    
    
    December 31, 2009
    
    
    December 31, 2008US$000
    
    
    US$000
    
    
    US$000Impairment:Rest of World  Ireland
    
    
    
    
    
    
    
    
    
    
    66,152Rest of World  Other
    
    
    
    
    
    
    
    
    
    
    1,996Americas
    
    
    
    
    
    
    
    
    
    
    17,645
    
    
    
    
    
    
    
    85,793Restructuring expenses:Rest of World  Ireland
    
    
    301
    
    
    
    
    
    
    
    1,904Rest of World  Other
    
    
    
    
    
    
    
    
    
    
    Americas
    
    
    
    
    
    
    
    
    
    
    185301
    
    
    
    
    
    
    
    2,089
 The 2010 restructuring expenses were incurred in connection with a programme involving a
re-organisation of the Groups HIV manufacturing activities and comprised termination payments for
employees located in Ireland. This restructuring cost is included within Net gain on divestment of
business and restructuring expenses, on the face of the income statement.
 Asset impairments arose as a result of the annual impairment review which was performed on 31
December 2008 (see note 28).
  84




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2010
 2.
    
    SEGMENT INFORMATION (CONTINUED)
 The Board of Directors announced a restructuring of the business in December 2008, which resulted
in certain one-off expenditure being incurred. These termination payments and other restructuring
costs resulted in an after tax charge of US$1.9 million (see note 28).j)
    
    The distribution of interest income and interest expense by geographical area was as
follows:
 Rest of WorldInterest Income
    
    Americas
    
    
    Ireland
    
    
    Other
    
    
    Eliminations
    
    
    TotalYear ended December 31, 2010
    
    US$000
    
    
    US$000
    
    
    US$000
    
    

US$000
    
    
    US$000Interest Income Earned
    
    
    
    
    
    
    910
    
    
    
    
    
    
    
    
    
    
    
    910Interest on Deferred Consideration
    
    
    98
    
    
    
    344
    
    
    
    
    
    
    
    
    
    
    
    442Inter-segment Interest Income
    
    
    
    
    
    
    428
    
    
    
    
    
    
    
    (428
    )
    
    
    Total revenue
    
    
    98
    
    
    
    1,682
    
    
    
    
    
    
    
    (428
    )
    
    
    1,352
 Rest of WorldInterest Expense
    
    Americas
    
    
    Ireland
    
    
    Other
    
    
    Eliminations
    
    
    TotalYear ended December 31, 2010
    
    US$000
    
    
    US$000
    
    
    US$000
    
    

US$000
    
    
    US$000Interest Expense
    
    
    85
    
    
    
    410
    
    
    
    
    
    
    
    
    
    
    
    495Inter-segment Interest Expense
    
    
    73
    
    
    
    355
    
    
    
    
    
    
    
    (428
    )
    
    
    Total revenue
    
    
    158
    
    
    
    765
    
    
    
    
    
    
    
    (428
    )
    
    
    495
 Rest of WorldInterest Income
    
    Americas
    
    
    Ireland
    
    
    Other
    
    
    Eliminations
    
    
    TotalYear ended December 31, 2009
    
    US$000
    
    
    US$000
    
    
    US$000
    
    

US$000
    
    
    US$000Interest Income Earned
    
    
    
    
    
    
    6
    
    
    
    2
    
    
    
    
    
    
    
    8Inter-segment Interest Income
    
    
    
    
    
    
    1,157
    
    
    
    
    
    
    
    (1,157
    )
    
    
    Total revenue
    
    
    
    
    
    
    1,163
    
    
    
    2
    
    
    
    (1,157
    )
    
    
    8
 Rest of WorldInterest Expense
    
    Americas
    
    
    Ireland
    
    
    Other
    
    
    Eliminations
    
    
    TotalYear ended December 31, 2009
    
    US$000
    
    
    US$000
    
    
    US$000
    
    

US$000
    
    
    US$000Interest Expense
    
    
    11
    
    
    
    1,178
    
    
    
    3
    
    
    
    
    
    
    
    1,192Inter-segment Interest Expense
    
    
    184
    
    
    
    973
    
    
    
    
    
    
    
    (1,157
    )
    
    
    Total revenue
    
    
    195
    
    
    
    2,151
    
    
    
    3
    
    
    
    (1,157
    )
    
    
    1,192
 Rest of WorldInterest Income
    
    Americas
    
    
    Ireland
    
    
    Other
    
    
    Eliminations
    
    
    TotalYear ended December 31, 2008
    
    US$000
    
    
    US$000
    
    
    US$000
    
    

US$000
    
    
    US$000Interest Income Earned
    
    
    1
    
    
    
    62
    
    
    
    2
    
    
    
    
    
    
    
    65Inter-segment Interest Income
    
    
    
    
    
    
    2,038
    
    
    
    
    
    
    
    (2,038
    )
    
    
    Total revenue
    
    
    1
    
    
    
    2,100
    
    
    
    2
    
    
    
    (2,038
    )
    
    
    65
  85




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2010
 2.
    
    SEGMENT INFORMATION (CONTINUED)
 Rest of WorldInterest Expense
    
    Americas
    
    
    Ireland
    
    
    Other
    
    
    Eliminations
    
    
    TotalYear ended December 31, 2008
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Interest Expense
    
    
    5
    
    
    
    2,147
    
    
    
    8
    
    
    
    
    
    
    
    2,160Inter-segment Interest Expense
    
    
    330
    
    
    
    1,708
    
    
    
    
    
    
    
    (2,038
    )
    
    
    Total revenue
    
    
    335
    
    
    
    3,855
    
    
    
    8
    
    
    
    (2,038
    )
    
    
    2,160
 k)
    
    The distribution of taxation (expense)/credit by geographical area was as follows:
 December 31, 2010
    
    
    December 31, 2009
    
    
    December 31, 2008US$000
    
    
    US$000
    
    
    US$000Rest of World  Ireland
    
    
    591
    
    
    
    (1,023
    )
    
    
    3,716Rest of World  Other
    
    
    (815
    )
    
    
    200
    
    
    
    9Americas
    
    
    (718
    )
    
    
    (268
    )
    
    
    167(942
    )
    
    
    (1,091
    )
    
    
    3,892
 l)
    
    During 2010, 2009 and 2008 there were no customers generating 10% or more of total
revenues.
 m)
    
    The distribution of capital expenditure by geographical area was as follows:
 December 31, 2010
    
    
    December 31, 2009US$000
    
    
    US$000Rest of World  Ireland
    
    
    4,077
    
    
    
    6,816Rest of World  Other
    
    
    598
    
    
    
    670Americas
    
    
    3,923
    
    
    
    3,0718,598
    
    
    
    10,557
 3.
    
    NET GAIN ON DIVESTMENT OF BUSINESS AND RESTRUCTURING EXPENSES
 In May 2010, the Group sold its worldwide Coagulation business to Diagnostica Stago for US$89.9
million. Diagnostica Stago purchased the share capital of Trinity Biotech (UK Sales) Limited,
Trinity Biotech GmbH and Trinity Biotech S.à.r.l, along with Coagulation assets of Biopool US Inc.
and Trinity Biotech Manufacturing Limited. As part of the sale, the Group also transferred the
leasing arrangements of one of its facilities in Bray, Ireland to Diagnostica Stago. Included in
the sale are Trinitys lists of coagulation customers and suppliers, all coagulation inventory,
intellectual property and developed technology.
 The Group received consideration of
US$67.4 million and interest on deferred consideration of
US$1.0 million in 2010. These proceeds were used in part to repay the
Group’s bank loans in 2010 and accordingly there were no bank loans
outstanding at December 31, 2010. A further US$11.25 million will be
received from Diagnostica Stago in May 2011 (see note 16) and the
remaining US$11.25 million will be received in May 2012 (see note
14). These amounts are recognised net of deferred interest. No conditions or
earnout provisions will apply to this deferred element of the consideration,
which is supported by a bank guarantee.
 IFRS 5 (Non-current Assets Held for Sale and Discontinued Operations) outlines the disclosures
required for a discontinued operation. However, the coagulation business falls outside of these
criteria, principally owing to the fact that it is not defined as a component of the Group. A
component is defined by IFRS 5 as operations and cashflows that can be clearly distinguished,
operationally and for financial reporting purposes, from the rest of the entity. The Group has
determined that neither the operations nor the cashflows of the coagulation business could be
clearly distinguished, operationally or from a financial reporting viewpoint and therefore, on that
basis, the coagulation business does not meet the definition of a discontinued operation.
  86




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2010
 3.
    
    NET GAIN ON DIVESTMENT OF BUSINESS AND RESTRUCTURING EXPENSES (CONTINUED)
 Accordingly, the Group has disclosed the Gain on Sale under the heading Net gain on divestment of
business and restructuring expenses in the income statement, where it is shown net of termination
expenses of US$301,000 (see note 7). The Gain on divestment is also shown separately within the
Segment Information note as required by IFRS 8 (Operating Segments) where appropriate (see note 2).
 The gain on the divestment is summarised below according to the assets and liabilities which were
divested in May 2010 as part of the sale. The assets and liabilities divested have been
cross-referenced throughout this document in order to provide a clearer understanding of the
movements which have occurred in the current financial year. The effect of the divestment is
summarised as follows:
 2010
    
    
    2010US$000
    
    

US$000Total Consideration
    
    
    
    
    
    
    89,923Property, plant and equipment (net book value)
    
    
    6,775Goodwill and intangible assets
    
    
    12,270Deferred tax assets
    
    
    123Inventories (net)
    
    
    21,528Trade and other receivables
    
    
    6,211Cash and cash equivalents
    
    
    427Interest bearing loans and borrowings
    
    
    (2,825
    )Income tax payable
    
    
    (70
    )Trade and other payables
    
    
    (3,463
    )Deferred Tax Liabilities
    
    
    (183
    )Net identifiable assets disposed
    
    
    40,793
    
    
    
    (40,793
    )Other Costs associated with the Divestiture of Coagulation
    
    
    
    
    
    
    (2,355
    )Net gain on divestment of business
    
    
    
    
    
    
    46,775Restructuring Expenses*
    
    
    
    
    
    
    (301
    )Net gain on divestment of business and restructuring
expenses
    
    
    
    
    
    
    46,474
 *
    
    The Restructuring Expenses relate to termination payments resulting from a restructuring
programme announced in 2010 (see note 7). 4.
    
    FINANCIAL INCOME AND EXPENSES
 December 31, 2010
    
    
    December 31, 2009
    
    
    December 31, 2008Note
    
    US$000
    
    
    US$000
    
    
    US$000Financial income:Interest income
    
    
    
    
    910
    
    
    
    8
    
    
    
    65Other interest income
    
    
    
    
    442
    
    
    
    
    
    
    
    1,352
    
    
    
    8
    
    
    
    65Financial expense:Finance lease interest
    
    
    
    
    (67
    )
    
    
    (135
    )
    
    
    (123
    )Interest payable on interest
bearing loans and borrowings
    
    20
    
    
    (425
    )
    
    
    (1,053
    )
    
    
    (1,912
    )Other interest expense
    
    
    
    
    (3
    )
    
    
    (4
    )
    
    
    (125
    )(495
    )
    
    
    (1,192
    )
    
    
    (2,160
    )Net Financing Income/(expense)
    
    
    
    
    857
    
    
    
    (1,184
    )
    
    
    (2,095
    )
  87




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2010
 4.
    
    FINANCIAL INCOME AND EXPENSES (CONTINUED)
 Other interest income recognised in 2010 is entirely comprised of interest income relating to the
deferred consideration of US$22,500,000 due to the Company as a result of the sale of the
Coagulation product line in 2010. For further information, see Note 3.
 Other interest expense recognised in 2008 mainly comprises an interest expense arising from the
discounting of the deferred consideration payable to bioMerieux, resulting from the acquisition of
the Coagulation business during 2006, to reflect the present value of this additional
consideration.
 5.
    
    OTHER OPERATING INCOME
 December 31, 2010
    
    
    December 31, 2009
    
    
    December 31, 2008US$000
    
    
    US$000
    
    
    US$000Rental income from premises
    
    
    213
    
    
    
    222
    
    
    
    237Employment / training grants
    
    
    (50
    )
    
    
    215
    
    
    
    936Other income
    
    
    1,453
    
    
    
    
    
    
    
    1,616
    
    
    
    437
    
    
    
    1,173
 As part of the divestiture of the Coagulation business in May 2010, the Group entered into a
Transitional Services Agreement (TSA) with Diagnostica Stago. The services provided by the Group
to Stago under the TSA comprise mainly: accounting; information technology and logistics support
and warehousing services.
 Other income therefore, mainly comprises income recognised under the TSA. This income has not been
treated as revenue since the TSA activities are incidental to the main revenue-generating
activities of the Group.
 6.
    
    PROFIT/(LOSS) BEFORE TAX
 The following amounts were charged / (credited) to the statement of operations:
 December 31, 2010
    
    
    December 31, 2009
    
    
    December 31, 2008US$000
    
    
    US$000
    
    
    US$000Directors emoluments (including non-executive directors):Remuneration
    
    
    2,082
    
    
    
    1,271
    
    
    
    1,617Pension
    
    
    127
    
    
    
    105
    
    
    
    241Share based payments
    
    
    592
    
    
    
    422
    
    
    
    776Compensation for loss of office
    
    
    
    
    
    
    
    
    
    
    1,283Other
    
    
    39
    
    
    
    
    
    
    
    44Auditors remunerationAudit fees
    
    
    628
    
    
    
    764
    
    
    
    809Non audit fees
    
    
    31
    
    
    
    21
    
    
    
    31Depreciation  leased assets
    
    
    84
    
    
    
    87
    
    
    
    372Depreciation  owned assets
    
    
    1,146
    
    
    
    1,699
    
    
    
    4,053Amortisation
    
    
    1,589
    
    
    
    1,959
    
    
    
    3,616Gain on divestiture of Coagulation business
    
    
    46,775
    
    
    
    
    
    
    
    Loss/(profit) on the disposal of property,
plant and equipment
    
    
    12
    
    
    
    66
    
    
    
    (682
    )Net foreign exchange differences
    
    
    1,119
    
    
    
    32
    
    
    
    (224
    )Operating lease rentals:Plant and machinery
    
    
    5
    
    
    
    15
    
    
    
    31Land and buildings
    
    
    3,211
    
    
    
    3,727
    
    
    
    4,421Other equipment
    
    
    130
    
    
    
    339
    
    
    
    437
  88




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2010
 7.
    
    PERSONNEL EXPENSES
 December 31, 2010
    
    
    December 31, 2009
    
    
    December 31, 2008US$000
    
    
    US$000
    
    
    US$000Wages and salaries
    
    
    25,491
    
    
    
    39,967
    
    
    
    48,755Social welfare costs
    
    
    2,279
    
    
    
    4,237
    
    
    
    5,338Pension costs
    
    
    897
    
    
    
    1,350
    
    
    
    1,442Share-based payments
    
    
    1,109
    
    
    
    521
    
    
    
    1,16629,776
    
    
    
    46,075
    
    
    
    56,701
 Personnel expenses are shown net of capitalisations. Total personnel expenses (wages and salaries,
social welfare costs and pension costs), inclusive of amounts capitalised, for the year ended
December 31, 2010 amounted to US$32,506,000 (2009: US$50,459,000) (2008: US$61,644,000). Total
share based payments, inclusive of amounts capitalised in the balance sheet, amounted to
US$1,240,000 for the year ended December 31, 2010 (2009: US$599,000) (2008: US$1,193,000). See
note 19.
 Included in personnel expenses for the year ended December 31, 2010 is US$301,000 which relates to
termination payments resulting from a restructuring programme announced in 2010. This programme
involved a re-organisation of the Groups HIV manufacturing activities and comprised termination
payments for employees located in Ireland. This restructuring cost is included within Net gain on
divestment of business and restructuring expenses, on the face of the income statement.
 Included in personnel expenses for the year ended December 31, 2008 is US$589,000 which relates to
termination payments resulting from the restructuring announced in December 2008 (see note 28).
 The average number of persons employed by the Group in the financial year was 452 (2009: 676)
(2008: 757) and is analysed into the following categories:
 December 31,
    
    
    December 31,
    
    
    December 31,2010
    
    
    2009
    
    
    2008Research and development
    
    
    37
    
    
    
    61
    
    
    
    57Administration and sales
    
    
    130
    
    
    
    189
    
    
    
    261Manufacturing and quality
    
    
    285
    
    
    
    426
    
    
    
    439452
    
    
    
    676
    
    
    
    757
 The reduction in average
headcount is mainly due to the fact that 321 employees transferred to the
acquirer of the Coagulation business (Diagnostica Stago) in May 2010. These employees have been
included in the average headcount numbers on a pro-rata basis up to their date of departure.
 8.
    
    PENSION SCHEMES
 The Group operates defined contribution pension schemes for certain of its full time employees. The
benefits under these schemes are financed by both Group and employee contributions. Total
contributions made by the Group in the financial year and charged against income amounted to
US$897,000 (2009: US$1,350,000) (2008: US$1,442,000) (note 7). The pension accrual for the Group
at December 31, 2010 was US$228,000 (2009: US$309,000), (2008: US$332,000).
  89




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2010
 9.
    
    INCOME TAX EXPENSE / (CREDIT)
 (a)
    
    The charge for tax based on the profit / (loss) comprises:
 December 31, 2010
    
    
    December 31, 2009
    
    
    December 31, 2008US$000
    
    
    US$000
    
    
    US$000Current tax expenseCorporation tax at 12.5%
    
    
    629
    
    
    
    75
    
    
    
    58Overseas tax (a)
    
    
    356
    
    
    
    46
    
    
    
    35Adjustment in respect of prior years (b)
    
    
    (138
    )
    
    
    (120
    )
    
    
    (33
    )Total current tax expense
    
    
    847
    
    
    
    1
    
    
    
    60Deferred tax expense / (credit)(c)Origination and reversal of temporary
differences (see note 13)
    
    
    380
    
    
    
    1,354
    
    
    
    (3,858
    )Origination and reversal of net
operating losses (see note 13)
    
    
    (285
    )
    
    
    (264
    )
    
    
    (94
    )Total deferred tax expense / (credit)
    
    
    95
    
    
    
    1,090
    
    
    
    (3,952
    )Total income tax charge / (credit) in
income statement (d)
    
    
    942
    
    
    
    1,091
    
    
    
    (3,892
    )
 (a)
    
    The overseas tax charge in 2010, 2009 and 2008 relates primarily to US State Taxes.(b)
    
    The credit in 2010 relates to the claim for Irish Research and Development Tax Credits (R&D
tax credits) in respect of the year ended December 31, 2009. The credit in 2009 arises in respect
of the finalisation of a claim for Irish Research and Development Tax Credits in respect of the
year ended December 31, 2008 and the refund of US state taxes. 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.(c)
    
    In 2010 there was a deferred tax credit of US$1,093,000 (2009: US$1,015,000 charge; 2008:
US$3,744,000 credit) recognised in respect of Ireland and a deferred tax charge of US$1,188,000
(2009: US$75,000 charge; 2008: US$208,000 credit) recognised in respect of overseas tax
jurisdictions.(d)
    
    In 2008 the impairment charge and restructuring charges had a significant impact on the income
tax (credit)/charge in those financial years. 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 28). December 31, 2010
    
    
    December 31, 2009
    
    
    December 31, 2008Effective tax rate
    
    US$000
    
    
    US$000
    
    
    US$000Profit/(loss) before taxation
    
    
    61,360
    
    
    
    12,915
    
    
    
    (81,670
    )As a percentage of profit/(loss) before tax:Current tax
    
    
    1.38
    %
    
    
    0.00
    %
    
    
    0.07
    %Total (current and deferred)
    
    
    1.53
    %
    
    
    8.45
    %
    
    
    4.76
    %
  90




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2010
 9.
    
    INCOME TAX EXPENSE / (CREDIT) (CONTINUED)
 The following table reconciles the applicable Republic of Ireland statutory tax rate to the
effective total tax rate for the Group:
 December 31, 2010
    
    
    December 31, 2009
    
    
    December 31, 2008Irish corporation tax
    
    
    12.50
    %
    
    
    12.50
    %
    
    
    12.50
    %Adjustments in respect of prior years
    
    
    (0.22
    %)
    
    
    (0.93
    %)
    
    
    0.04
    %Effect of tax rates on overseas earnings
    
    
    3.89
    %
    
    
    25.30
    %
    
    
    1.67
    %Effect of non deductible expenses
    
    
    0.32
    %
    
    
    1.09
    %
    
    
    (6.48
    %)Effect of current year net operating
losses and temporary differences for
which no deferred tax asset was
recognised
    
    
    (5.55
    %)
    
    
    (30.66
    %)
    
    
    (3.21
    %)R&D tax credit
    
    
    (0.06
    %)
    
    
    
    
    
    
    0.29
    %Effect of Irish income taxable at
higher tax rate (a)
    
    
    (9.35
    %)
    
    
    1.15
    %
    
    
    (0.05
    %)Effective tax rate
    
    
    1.53
    %
    
    
    8.45
    %
    
    
    4.76
    %
 (a)
    
    In 2010 the Irish income taxable at a higher tax rate has a negative effect on the overall
corporation tax rate. This is because the gain arising on sale of the assets and liabilities
of the coagulation business in Ireland, which is taxable at the higher tax rate of 25%,
resulted in a capital loss and consequently no capital gains tax is payable. For further
information see Note 3. The effect of current year net operating losses and temporary differences for which no deferred tax
asset was recognized is analyzed further in the table below (see also note 13). No deferred tax
asset was recognized because there was no reversing deferred tax liability in the same jurisdiction
reversing in the same period and no future taxable income in the same jurisdiction.
 Effect in
    
    
    Percentage
    
    
    Effect in
    
    
    Percentage2010
    
    
    effect in
    
    
    2009
    
    
    effect inUnrecognised deferred tax assets
    
    US$000
    
    
    2010
    
    
    US$000
    
    
    2009Temporary differences arising in USA
    
    
    (387
    )
    
    
    (0.63
    %)
    
    
    (3,076
    )
    
    
    (23.83
    %)Net operating losses arising in USA
    
    
    (3,059
    )
    
    
    (4.99
    %)
    
    
    (1,055
    )
    
    
    (8.16
    %)Net operating losses arising in Ireland
    
    
    104
    
    
    
    0.17
    %
    
    
    
    
    
    
    Net operating losses arising in France
    
    
    (89
    )
    
    
    (0.14
    %)
    
    
    263
    
    
    
    2.03
    %Net operating losses arising in Germany
    
    
    26
    
    
    
    0.04
    %
    
    
    (588
    )
    
    
    (4.55
    %)(3,405
    )
    
    
    (5.55
    %)
    
    
    (4,456
    )
    
    
    (34.52
    %)Group Unrecognised deferred tax assets
    
    
    0
    
    
    
    0.0
    %
    
    
    348
    
    
    
    2.69
    %Change in tax rates
    
    
    0
    
    
    
    0.0
    %
    
    
    149
    
    
    
    1.15
    %Total
    
    
    (3,405
    )
    
    
    (5.55
    %)
    
    
    (3,959
    )
    
    
    (30.66
    %)
 Deferred tax recognised directly in equity
 December 31, 2010
    
    
    December 31, 2009
    
    
    December 31, 2008US$000
    
    
    US$000
    
    
    US$000Relating to forward
contracts as hedged
instruments
    
    
    6
    
    
    
    3
    
    
    
    266
    
    
    
    3
    
    
    
    26
  91




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2010
 9.
    
    INCOME TAX EXPENSE / (CREDIT) (CONTINUED)
 a.
    
    The distribution of profit/(loss) before taxes by geographical area was as follows:
 December 31, 2010
    
    
    December 31, 2009
    
    
    December 31, 2008US$000
    
    
    US$000
    
    
    US$000Rest of World  Ireland
    
    
    38,161
    
    
    
    5,240
    
    
    
    (59,917
    )Rest of World  Other
    
    
    10,411
    
    
    
    (1,206
    )
    
    
    (4,395
    )Americas
    
    
    12,788
    
    
    
    8,881
    
    
    
    (17,358
    )61,360
    
    
    
    12,915
    
    
    
    (81,670
    )
 b.
    
    At December 31, 2010, the Group had unutilised net operating losses as follows:
 December 31, 2010
    
    
    December 31, 2009
    
    
    December 31, 2008US$000
    
    
    US$000
    
    
    US$000USA
    
    
    1,841
    
    
    
    7,569
    
    
    
    10,167Ireland
    
    
    999
    
    
    
    1,918
    
    
    
    290France
    
    
    
    
    
    
    2,368
    
    
    
    1,812Germany
    
    
    
    
    
    
    1,152
    
    
    
    3,245UK
    
    
    
    
    
    
    101
    
    
    
    1972,840
    
    
    
    13,108
    
    
    
    15,711
 The utilisation of these net operating loss carryforwards is limited to future profits in the USA
and Ireland. The US net operating loss has a maximum carryforward of 20 years. US$847,000 will
expire by December 31, 2026 and US$994,000 will expire by December 31, 2027. The Irish net
operating losses can be carried forward indefinitely.
 The unutilised net operating losses in France, Germany and UK were transferred to Diagnostica Stago
on April 30, 2010 following their purchase of Trinity Biotech S.à.r.l., Trinity Biotech GmbH and
Trinity Biotech (UK Sales) Limited respectively. At December 31, 2009, the Group recognised a
deferred tax asset of US$96,000 (2008: US$133,000) in respect of net operating loss carryforwards
in Germany and the UK, as there were sufficient taxable temporary differences relating to the same
taxation authority and the same taxable entity which would result in taxable amounts against which
the unused tax losses could be utilised before they expire.
 At December 31, 2010, the Group had unrecognised deferred tax assets in respect of unused tax
losses, unused tax credits and deductible temporary differences as follows:
 December 31, 2010
    
    
    December 31, 2009
    
    
    December 31, 2008US$000
    
    
    US$000
    
    
    US$000USA  unused tax losses
    
    
    
    
    
    
    3,071
    
    
    
    4,126Germany  unused tax losses
    
    
    
    
    
    
    427
    
    
    
    866France  unused tax losses
    
    
    
    
    
    
    861
    
    
    
    598Ireland  unused tax losses
    
    
    177
    
    
    
    73
    
    
    
    73USA  unused tax credits
    
    
    358
    
    
    
    346
    
    
    
    346USAdeductible temporary
differences
    
    
    
    
    
    
    387
    
    
    
    3,464Unrecognised Deferred Tax Asset
    
    
    535
    
    
    
    5,165
    
    
    
    9,473
 The accounting policy for deferred tax is to calculate the deferred tax asset that is deemed
recoverable, considering all sources for future taxable profits. The deferred tax assets in the
above table have not been recognized due to uncertainty regarding the full utilization of these
losses in the related tax jurisdiction in future periods. Only when it is probable that future
profits will be available to utilize the forward losses or temporary differences is a deferred tax
asset recognized. When there is a reversing deferred tax liability in that jurisdiction that
reverses in the same period, the deferred tax asset is restricted so that it equals the reversing
deferred tax liability.
  92




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2010
 9.
    
    INCOME TAX EXPENSE / (CREDIT) (CONTINUED)
 At December 31, 2009 a deferred tax asset of US $3,071,000 (2008 : US$4,126,000) in respect of net
operating losses in the US and US$387,000 (2008: US$3,464,000) in respect of temporary differences
in the US were not recognised because the deferred tax asset was restricted in order that it
equalled the reversing deferred tax liability in the US. The net operating losses in the USA have
reduced significantly in 2010, mainly due to the profit earned on the sale of the coagulation
business. The reduction in net operating losses has resulted in the deferred tax asset being less
than the reversing deferred tax liability. As a result, the unrecognised deferred tax assets in
respect of unused tax losses and temporary differences have reduced to nil at December 31, 2010.
 The Group has US state credit carryforwards of US$358,000 at December 31, 2010 (2009: US$346,000).
A deferred tax asset of US$358,000 (2009: US$346,000) in respect of US state credit carryforwards
was not recognised in 2010 due to uncertainties regarding future full utilisation of these state
credit carryforwards in the related tax jurisdiction in future periods. Unused tax losses in
respect of Germany and France have been transferred to Diagnostica Stago following their purchase
of the Groups German and French subsidiaries in 2010.
 10.
    
    EARNINGS/(LOSS) PER SHAREBasic earnings/(loss) per ordinary share
 Basic earnings/(loss) per ordinary share for the Group is computed by dividing the profit after
taxation of US$60,418,000 (2009: profit after tax of US$11,824,000) (2008: loss after tax of
US$77,778,000) for the financial year by the weighted average number of A ordinary and B
ordinary shares in issue of 84,734,378 (2009: 83,737,884) (2008: 81,394,075). 1,400,000 of the
total weighted average shares used as the EPS denominator relate to the 700,000 B ordinary
shares in issue. In all respects these shares are treated the same as A ordinary shares except
for the fact that they have two voting rights per share, 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. Hence the earnings/(loss) per share for a B ordinary share is exactly twice
the earnings/ (loss) per share of an A ordinary share.
 December 31,
    
    
    December 31,
    
    
    December 31,2010
    
    
    2009
    
    
    2008A ordinary shares
    
    
    83,334,378
    
    
    
    82,337,884
    
    
    
    79,994,075B ordinary shares (multiplied by 2)
    
    
    1,400,000
    
    
    
    1,400,000
    
    
    
    1,400,000Basic earnings/ (loss) per share denominator
    
    
    84,734,378
    
    
    
    83,737,884
    
    
    
    81,394,075Reconciliation to weighted average earnings per
share denominator:Number of A ordinary shares at January 1 (note 18)
    
    
    82,952,037
    
    
    
    82,017,581
    
    
    
    74,756,765Number 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
    
    
    382,341
    
    
    
    320,303
    
    
    
    5,237,310Basic earnings/ (loss) per share denominator
    
    
    84,734,378
    
    
    
    83,737,884
    
    
    
    81,394,075
 The weighted average number of shares issued during the year is calculated by taking the number of
shares issued multiplied by the number of days in the year each share is in issue divided by 365
days.Diluted earnings/ (loss) per ordinary share
 Diluted earnings/ (loss) per ordinary share is computed by dividing the profit after tax of
US$60,418,000 (2009: profit after tax of US$11,824,000) (2008: loss after tax of US$77,778,000)
for the financial year by the diluted weighted average number of ordinary shares in issue of
86,661,535 (2009: 83,772,094) (2008: 81,394,075).
  93




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2010
 10.
    
    EARNINGS/(LOSS) PER SHARE (CONTINUED)
 The basic weighted average number of shares for the Group may be reconciled to the number used in
the diluted earnings/ (loss) per ordinary share calculation as follows:
 December 31,
    
    
    December 31,
    
    
    December 31,2010
    
    
    2009
    
    
    2008Basic earnings/ (loss) per share denominator
(see above)
    
    
    84,734,378
    
    
    
    83,737,884
    
    
    
    81,394,075Issuable on exercise of options and warrants
    
    
    1,927,157
    
    
    
    34,210
    
    
    
    Diluted earnings/ (loss) per share denominator *
    
    
    86,661,535
    
    
    
    83,772,094
    
    
    
    81,394,075
 *
    
    At December 31, 2010 and December 31, 2009 the number of shares issuable on the exercise of
options and warrants was dilutive. At December 31, 2008, the number of shares issuable on the
exercise of options and warrants was not dilutive. Earnings per ADS
 In June 2005, Trinity Biotech adjusted its ADS ratio from 1 ADS: 1 Ordinary Share to 1 ADS: 4
Ordinary Shares. Earnings per ADS for all periods presented have been restated to reflect this
exchange ratio.
 Basic earnings/ (loss) per ADS for the Group is computed by dividing the profit after taxation of
US$60,418,000 (2009: profit after tax of US$11,824,000) (2008: loss after tax of US$77,778,000)
for the financial year by the weighted average number of ADS in issue of 21,183,594 (2009:
20,934,471); (2008: 20,348,519).
 December 31,
    
    
    December 31,
    
    
    December 31,2010
    
    
    2009
    
    
    2008A ordinary shares  ADS
    
    
    20,833,594
    
    
    
    20,584,471
    
    
    
    19,998,519B ordinary shares  ADS
    
    
    350,000
    
    
    
    350,000
    
    
    
    350,000Basic earnings/ (loss) per share denominator
    
    
    21,183,594
    
    
    
    20,934,471
    
    
    
    20,348,519
 Diluted earnings/ (loss) per ADS for the Group is computed by dividing the profit after taxation
of US$60,418,000 (2009: profit after taxation of US$11,824,000) (2008: loss after tax of
US$77,778,000) for the financial year, by the diluted weighted average number of ADS in issue of
21,665,383 (2009: 20,943,024) (2008: 20,348,519).
 The basic weighted average number of ADS shares for the Group may be reconciled to the number used
in the diluted earnings per ADS share calculation as follows:
 December 31,
    
    
    December 31,
    
    
    December 31,2010
    
    
    2009
    
    
    2008Basic earnings/ (loss) per share denominator
(see above)
    
    
    21,183,594
    
    
    
    20,934,471
    
    
    
    20,348,519Issuable on exercise of options and warrants
    
    
    481,789
    
    
    
    8,553
    
    
    
    Diluted (loss)/ earnings per share denominator *
    
    
    21,665,383
    
    
    
    20,943,024
    
    
    
    20,348,519
 *
    
    At December 31, 2010 and December 31, 2009, the number of shares issuable on the exercise of
options and warrants was dilutive. At December 31, 2008, the number of ADSs issuable on the
exercise of options and warrants was not dilutive.  94




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2010
 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, 2009
    
    
    5,716
    
    
    
    3,682
    
    
    
    5,706
    
    
    
    31,390
    
    
    
    46,494Additions
    
    
    29
    
    
    
    8
    
    
    
    157
    
    
    
    2,111
    
    
    
    2,305Disposals / retirements
    
    
    
    
    
    
    
    
    
    
    (322
    )
    
    
    (933
    )
    
    
    (1,255
    )Exchange adjustments
    
    
    81
    
    
    
    
    
    
    
    5
    
    
    
    117
    
    
    
    203At December 31, 2009
    
    
    5,826
    
    
    
    3,690
    
    
    
    5,546
    
    
    
    32,685
    
    
    
    47,747At January 1, 2010
    
    
    5,826
    
    
    
    3,690
    
    
    
    5,546
    
    
    
    32,685
    
    
    
    47,747Additions
    
    
    11
    
    
    
    188
    
    
    
    453
    
    
    
    1,644
    
    
    
    2,296Disposals / retirements
    
    
    (3,498
    )
    
    
    (1,625
    )
    
    
    (1,695
    )
    
    
    (20,233
    )
    
    
    (27,051
    )Exchange adjustments
    
    
    (259
    )
    
    
    
    
    
    
    (14
    )
    
    
    (156
    )
    
    
    (429
    )At December 31, 2010
    
    
    2,080
    
    
    
    2,253
    
    
    
    4,290
    
    
    
    13,940
    
    
    
    22,563Accumulated
depreciation and
impairment lossesAt January 1, 2009
    
    
    (1,077
    )
    
    
    (3,161
    )
    
    
    (5,081
    )
    
    
    (25,320
    )
    
    
    (34,639
    )Charge for the year
    
    
    (124
    )
    
    
    (92
    )
    
    
    (159
    )
    
    
    (1,411
    )
    
    
    (1,786
    )Disposals / retirements
    
    
    
    
    
    
    
    
    
    
    322
    
    
    
    618
    
    
    
    940Exchange adjustments
    
    
    (10
    )
    
    
    
    
    
    
    (5
    )
    
    
    (73
    )
    
    
    (88
    )At December 31, 2009
    
    
    (1,211
    )
    
    
    (3,253
    )
    
    
    (4,923
    )
    
    
    (26,186
    )
    
    
    (35,573
    )At January 1, 2010
    
    
    (1,211
    )
    
    
    (3,253
    )
    
    
    (4,923
    )
    
    
    (26,186
    )
    
    
    (35,573
    )Charge for the year
    
    
    (146
    )
    
    
    (79
    )
    
    
    (144
    )
    
    
    (861
    )
    
    
    (1,230
    )Disposals / retirements
    
    
    571
    
    
    
    1,396
    
    
    
    1,331
    
    
    
    16,929
    
    
    
    20,227Exchange adjustments
    
    
    5
    
    
    
    
    
    
    
    1
    
    
    
    6
    
    
    
    12At December 31, 2010
    
    
    (781
    )
    
    
    (1,936
    )
    
    
    (3,735
    )
    
    
    (10,112
    )
    
    
    (16,564
    )Carrying amountsAt December 31, 2010
    
    
    1,299
    
    
    
    317
    
    
    
    555
    
    
    
    3,828
    
    
    
    5,999At December 31, 2009
    
    
    4,615
    
    
    
    437
    
    
    
    623
    
    
    
    6,499
    
    
    
    12,174
 Included within disposals/retirements in 2010 is Property, Plant and Equipment with a net book
value of US$6,775,000, which was disposed of as part of the divestiture of the Coagulation business
in May 2010 (see note 3).
 The annual impairment review performed at December 31, 2010 and December 31, 2009, showed that the
carrying value of the Groups assets did not exceed the amount that could be recovered through
their use or sale and, on that basis, there was no impairment in 2010 or 2009.
  95




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2010
 11.
    
    PROPERTY, PLANT AND EQUIPMENT (CONTINUED)Assets held under operating leases (where the Company is the lessor)
 Included in the carrying amount of property, plant and equipment are a number of assets included
in plant and equipment which generate operating lease revenue for the Group. The net book value
of these assets as at December 31, 2010 is US$557,000 (2009: US$1,409,000). Depreciation charged
on these assets in 2010 amounted to US$126,000 (2009: US$427,000).
 Included in disposals/retirements in 2010 is US$15,000 (2009: US$321,000) relating to the net book
value of leased instruments reclassified as inventory on return from customers.Assets held under finance leases
 Included in the carrying amount of property, plant and equipment is an amount for capitalised
leased assets of US$499,000 (2009: US$704,000). The leased equipment secures the lease
obligations (note 20). The depreciation charge in respect of capitalised leased assets for the
year ended December 31, 2010 was US$85,000 (2009: US$ US$87,000). This is split as follows:
 Computers,Leasehold
    
    
    fixtures and
    
    
    Plant andimprovements
    
    
    fittings
    
    
    equipment
    
    
    TotalAt December 31, 2010
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Depreciation charge
    
    
    
    
    
    
    
    
    
    
    85
    
    
    
    85Carrying valueAt December 31, 2010
    
    
    
    
    
    
    
    
    
    
    499
    
    
    
    499
 Computers,Leasehold
    
    
    fixtures and
    
    
    Plant andimprovements
    
    
    fittings
    
    
    equipment
    
    
    TotalAt December 31, 2009
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Depreciation charge
    
    
    7
    
    
    
    7
    
    
    
    73
    
    
    
    87Carrying valueAt December 31, 2009
    
    
    26
    
    
    
    48
    
    
    
    630
    
    
    
    704
 Property, plant and equipment under construction
 There were no assets in the course of construction included in plant and equipment at December
31, 2010 (2009: US$9,000). The assets in the course of construction at December 31, 2009 were
transferred to additions during the course of the year.
  96




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2010
 12.
    
    GOODWILL AND INTANGIBLE ASSETS
 Development
    
    
    Patents andGoodwill
    
    
    costs
    
    
    licences
    
    
    Other
    
    
    TotalUS$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000CostAt January 1, 2009
    
    
    79,599
    
    
    
    34,212
    
    
    
    10,093
    
    
    
    26,078
    
    
    
    149,982Additions
    
    
    
    
    
    
    7,845
    
    
    
    
    
    
    
    407
    
    
    
    8,252Disposals / retirements
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (25
    )
    
    
    (25
    )Exchange adjustments
    
    
    
    
    
    
    13
    
    
    
    
    
    
    
    4
    
    
    
    17At December 31, 2009
    
    
    79,599
    
    
    
    42,070
    
    
    
    10,093
    
    
    
    26,464
    
    
    
    158,226At January 1, 2010
    
    
    79,599
    
    
    
    42,070
    
    
    
    10,093
    
    
    
    26,464
    
    
    
    158,226Additions
    
    
    
    
    
    
    5,887
    
    
    
    8
    
    
    
    407
    
    
    
    6,302Disposals / retirements
    
    
    (32,345
    )
    
    
    (20,113
    )
    
    
    (3,675
    )
    
    
    (7,169
    )
    
    
    (63,302
    )Exchange adjustments
    
    
    
    
    
    
    (13
    )
    
    
    
    
    
    
    (4
    )
    
    
    (17
    )At December 31, 2010
    
    
    47,254
    
    
    
    27,831
    
    
    
    6,426
    
    
    
    19,698
    
    
    
    101,209Accumulated
amortisation and
Impairment lossesAt January 1, 2009
    
    
    (59,546
    )
    
    
    (28,874
    )
    
    
    (8,808
    )
    
    
    (14,229
    )
    
    
    (111,457
    )Charge for the year
    
    
    
    
    
    
    (401
    )
    
    
    (149
    )
    
    
    (1,409
    )
    
    
    (1,959
    )Disposals / retirements
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    25
    
    
    
    25Exchange adjustments
    
    
    
    
    
    
    (10
    )
    
    
    
    
    
    
    (3
    )
    
    
    (13
    )At December 31, 2009
    
    
    (59,546
    )
    
    
    (29,285
    )
    
    
    (8,957
    )
    
    
    (15,616
    )
    
    
    (113,404
    )At January 1, 2010
    
    
    (59,546
    )
    
    
    (29,285
    )
    
    
    (8,957
    )
    
    
    (15,616
    )
    
    
    (113,404
    )Charge for the year
    
    
    
    
    
    
    (297
    )
    
    
    (86
    )
    
    
    (1,206
    )
    
    
    (1,589
    )Disposals / retirements
    
    
    30,120
    
    
    
    11,824
    
    
    
    3,184
    
    
    
    5,904
    
    
    
    51,032Exchange adjustments
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    At December 31, 2010
    
    
    (29,426
    )
    
    
    (17,758
    )
    
    
    (5,859
    )
    
    
    (10,918
    )
    
    
    (63,961
    )Carrying amountsAt December 31, 2010
    
    
    17,828
    
    
    
    10,073
    
    
    
    567
    
    
    
    8,780
    
    
    
    37,248At December 31, 2009
    
    
    20,053
    
    
    
    12,785
    
    
    
    1,136
    
    
    
    10,848
    
    
    
    44,822
 Included within disposals/retirements in 2010 are intangible assets with a net book value of
US$12,270,000, which were disposed of as part of the divestiture of the Coagulation business in May
2010 (see Note 3).
 Included within development costs are costs of US$8,682,000 which were not amortised in 2010 (2009:
US$4,564,000). These development costs are not being amortised as the projects to which the costs
relate were not fully complete at December 31, 2010 or at December 31, 2009. As at December 31,
2010 these projects are expected to be completed during the period from January 1, 2011 to December
31, 2013 at an expected further cost of approximately US$6.5 million.
  97




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2010
 12.
    
    GOODWILL AND INTANGIBLE ASSETS (CONTINUED)
 The following represents the costs incurred during each period presented for each of the principal
development projects:
 2010
    
    
    2009Product Name
    
    US$000
    
    
    US$000Premier Hb 9210 Instrument for Haemoglobin A1c testing
    
    
    2,569
    
    
    
    1,023Destiny Max coagulation instrument*
    
    
    956
    
    
    
    3,234Bordetella Pertussis Western Blot test
    
    
    337
    
    
    
    156Tristat point of care instrument
    
    
    318
    
    
    
    1,072Coagulation assays and intermediates*
    
    
    312
    
    
    
    1,010HIV Ag-Ab rapid test
    
    
    247
    
    
    
    Legionella Urinary Antigen
    
    
    198
    
    
    
    Syphilis Rapid point-of-care test
    
    
    185
    
    
    
    Unigold Recombigen HIV Rapid enhancement
    
    
    142
    
    
    
    456Lyme assays
    
    
    
    
    
    
    629Trinblot Scanner
    
    
    
    
    
    
    72Other projects with spend less than $150,000
    
    
    623
    
    
    
    193Total capitalized development costs
    
    
    5,887
    
    
    
    7,845
 *
    
    Note that these projects ceased in May 2010 following the divestiture of the Coagulation
Business. All of the development projects for which costs have been capitalized are judged to be technically
feasible, commercially viable and likely to produce future economic benefits. In reaching this
conclusion, many factors have been considered including the following:
 (a)
    
    The Group only develops products within its field of expertise. The R&D team is
experienced in developing new products in this field and this experience means that only
products which have a high probability of technical success are put forward for
consideration as potential new products.
 (b)
    
    A technical feasibility study is undertaken in advance of every project. The feasibility
study for each project is reviewed by the R&D team leader, and by other senior management
depending on the size of the project. The feasibility study occurs in the initial research
phase of the project and costs in this phase are not capitalized.
 (c)
    
    Nearly all of our new product developments involve the transfer of our existing product
know-how to a new application. The Group does not engage in pure research. Every development
project is undertaken with the intention of bringing a particular new product to market for
which there is a known demand.
 (d)
    
    The commercial feasibility of each new product is established prior to commencement of a
project by ensuring it is projected to achieve an acceptable income after applying
appropriate discount rates.
 Other intangible assets consist primarily of acquired customer and supplier lists, trade
names, website and software costs.
 Amortisation is charged to the statement of operations through the selling, general and
administrative expenses line.
  98




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2010
 12.
    
    GOODWILL AND INTANGIBLE ASSETS (CONTINUED)
 Included in other intangibles are the following indefinite lived assets:
 December 31, 2010
    
    
    December 31, 2009US$000
    
    
    US$000Fitzgerald trade name
    
    
    970
    
    
    
    970RDI trade name
    
    
    560
    
    
    
    560Primus trade name
    
    
    670
    
    
    
    6702,200
    
    
    
    2,200
 The trade name assets purchased as part of the acquisition of Primus and RDI in 2005 and Fitzgerald
in 2004 were valued by an external valuer using the relief from royalty method and based on factors
such as (1) the market and competitive trends and (2) the expected usage of the name. It was
considered that these trade names will generate net cash inflows for the Group for an indefinite
period.Impairment testing for intangibles including goodwill and indefinite lived assets
 Goodwill and other intangibles with indefinite lives are tested annually for impairment at each
balance sheet date at a cash-generating unit (CGU) level, i.e. the individual legal entities. For
the purpose of these annual impairment reviews goodwill is allocated to the relevant CGU.
 The recoverable amount of goodwill and intangible assets contained in each of the Groups CGUs is
determined based on the greater of the fair value less cost to sell and value in use calculations.
The Group operates in one market sector (namely diagnostics) and accordingly the key assumptions
are similar for all CGUs. The value in use calculations use cash flow projections based on the
2011 budget and projections for a further four years using projected revenue and cost growth rates
of between 3% and 5%. At the end of the five year forecast period, terminal values for each CGU,
based on a long term growth rate are used in the value in use calculations. The cashflows and
terminal values for the CGUs are discounted using pre-tax discount rates which range from 18% to
32%.
 The value in use calculation is subject to significant estimation, uncertainty and accounting
judgements and are particularly sensitive in the following areas. In the event that there was a
variation of 10% in the assumed level of future growth in revenues, which would represent a
reasonably likely range of outcomes, the following impairment loss/write back would be recorded at
December 31, 2010:
 
    
    No impairment loss or reversal of impairment in the event of a 10% increase in the
growth in revenues.
 
    
    No impairment loss or reversal of impairment in the event of a 10% decrease in the
growth in revenues.
 Similarly if there was a 10% variation in the discount rate used to calculate the potential
impairment of the carrying values, which would represent a reasonably likely range of outcomes,
there would be the following impairment loss/write back would be recorded at December 31, 2010:
 
    
    No impairment loss or reversal of impairment in the event of a 10% decrease in the
discount rate
 
    
    No impairment loss or reversal of impairment in the event of a 10% increase in the
discount rate
  99




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS  DECEMBER 31, 2010
 13.
    
    DEFERRED TAX ASSETS AND LIABILITIESRecognised deferred tax assets and liabilitiesDeferred tax assets and liabilities of the Group are attributable to the following:
 Assets
    
    
    Liabilities
    
    
    Net2010
    
    
    2009
    
    
    2010
    
    
    2009
    
    
    2010
    
    
    2009US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Property, plant and equipment
    
    
    2,369
    
    
    
    3,869
    
    
    
    (581
    )
    
    
    (1,187
    )
    
    
    1,788
    
    
    
    2,682Intangible assets
    
    
    
    
    
    
    
    
    
    
    (6,031
    )
    
    
    (6,343
    )
    
    
    (6,031
    )
    
    
    (6,343
    )Inventories
    
    
    955
    
    
    
    1,253
    
    
    
    
    
    
    
    
    
    
    
    955
    
    
    
    1,253Provisions
    
    
    294
    
    
    
    118
    
    
    
    
    
    
    
    
    
    
    
    294
    
    
    
    118Other items
    
    
    216
    
    
    
    
    
    
    
    (578
    )
    
    
    (680
    )
    
    
    (362
    )
    
    
    (680
    )Tax value of loss carryforwards
recognised
    
    
    846
    
    
    
    561
    
    
    
    
    
    
    
    
    
    
    
    846
    
    
    
    561Deferred tax assets/(liabilities)
    
    
    4,680
    
    
    
    5,801
    
    
    
    (7,190
    )
    
    
    (8,210
    )
    
    
    (2,510
    )
    
    
    (2,409
    )
 The deferred tax asset in 2010 is due mainly to deductible temporary differences relating to
property, plant and equipment, inventory and the elimination of unrealised intercompany inventory
profit. The deferred tax asset decreased US$1,121,000 in 2010 principally due to a decrease in
unrecognised deferred tax assets. The accounting policy for deferred tax is to calculate the
deferred tax asset that is deemed recoverable, considering all sources for future taxable profits.
However when there is a reversing deferred tax liability in that jurisdiction that reverses in the
same period, the deferred tax asset is restricted so that it equals the reversing deferred tax
liability.
 The deferred tax assets in
Germany and UK were derecognised in 2010 following the divestiture of the
German and UK subsidiaries to Diagnostica Stago (see Note 3 for further information on the
divestiture of these subsidiaries). At December 31, 2009, the Group recognised a deferred tax asset
of US$96,000 (2008: US$133,000) in respect of net operating loss carryforwards in Germany and the
UK, as there were sufficient taxable temporary differences relating to the same taxation authority
and the same taxable entity which would result in taxable amounts against which the unused tax
losses could be utilised before they expire.
 The deferred tax liability is caused by the net book value of non-current assets being greater than
the tax written down value of non-current assets, temporary differences due to the acceleration of
the recognition of certain charges in calculating taxable income permitted in Ireland and the USA
and deferred tax recognised on fair value asset uplifts in connection with business combinations.
The deferred tax liability decreased US$1,020,000 in 2010, principally due to sale of property,
plant and equipment and intangible assets to Diagnostica Stago and the resulting elimination of the
temporary differences in respect of these assets.
 Deferred tax assets and liabilities are only offset when the entity has a legally enforceable
right to set off current tax assets against current tax liabilities and where the intention is to
settle current tax liabilities and assets on a net basis or to realise the assets and settle the
liabilities simultaneously. At December 31, 2010 and at December 31, 2009 no deferred tax assets
and liabilities are offset as it is not certain as to whether there is a legally enforceable
right to set off current tax assets against current tax liabilities and it is also uncertain as
to what current tax assets may be set off against current tax liabilities and in what periods.Unrecognised deferred tax assets
 Deferred tax assets have not been recognised by the Group in respect of the following items:
 December 31, 2010
    
    
    December 31, 2009US$000
    
    
    US$000Capital losses
    
    
    8,513
    
    
    
    6,138Net operating losses
    
    
    704
    
    
    
    11,720US state credit carryforwards
    
    
    358
    
    
    
    346Deductible temporary differences
    
    
    
    
    
    
    9549,575
    
    
    
    19,158
  100




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
 13.
    
    DEFERRED TAX ASSETS AND LIABILITIES (CONTINUED)
 There was a decrease of US$9,583,000 in the unrecognised deferred tax assets during the year ended
December 31, 2010. For comments on the uncertainty prompting less than full recognition refer to
note 9. The movement in the unrecognised deferred tax assets during the year ended December 31,
2010 is analysed as follows:
 Increase/
    
    
    Applicable(decrease)
    
    
    tax rate
    
    
    Tax effectMovement in Unrecognised deferred tax assets
    
    US$000
    
    
    %
    
    
    US$000Deductible temporary differences
    
    
    (954
    )
    
    
    40.6
    %
    
    
    (387
    )Net operating losses Ireland
    
    
    414
    
    
    
    25.0
    %
    
    
    104Net operating losses USA
    
    
    (7,569
    )
    
    
    40.6
    %
    
    
    (3,071
    )Net operating losses France to date of divestiture
    
    
    (267
    )
    
    
    33.0
    %
    
    
    (89
    )Net operating losses Germany to date of divestiture
    
    
    79
    
    
    
    34.0
    %
    
    
    26US state credit carryforwards
    
    
    12
    
    
    
    n/a
    
    
    
    12(8,285
    )
    
    
    
    
    
    
    (3,405
    )Capital losses in Ireland
    
    
    2,375
    
    
    
    25.0
    %
    
    
    594Net operating losses France eliminated on divestiture
    
    
    (2,341
    )
    
    
    33.0
    %
    
    
    (773
    )Net operating losses Germany eliminated on divestiture
    
    
    (1,332
    )
    
    
    34.0
    %
    
    
    (453
    )(9,583
    )
    
    
    
    
    
    
    (4,037
    )
 At December 31, 2009 net operating losses in the US of US$3,071,000 and temporary differences of
$954,000 also in the US were not recognised because recognition would have resulted in the deferred
tax asset exceeding the reversing deferred tax liability in the US. At December 31, 2010 the
deferred tax asset in the US is less than the reversing deferred tax liability and therefore no
restriction is required on the amount of net operating losses and temporary differences recognised
as deferred tax assets.
 A deferred tax asset of US$358,000 (2009: US$346,000) in respect of US state credit carryforwards
was not recognised due to uncertainties regarding the timing of the utilisation of these state
credit carryforwards in the related tax jurisdiction in future periods.
 A deferred tax asset of US$177,000 (2009: US$73,000) in respect of net operating losses of
US$704,000 (2009: US$290,000) in Ireland was not recognised due to uncertainties regarding the
timing of the utilisation of these losses in the relevant entity in future periods.
 A deferred tax asset of US$772,000 (2009: US$861,000) in respect of net operating losses of
US$2,341,000 (2009: US$2,608,000) in France was not recognised up to the date of divestiture of
the Groups French subsidiary due to uncertainties regarding the timing of the utilisation of these
losses in the related tax jurisdiction in future periods.
 A deferred tax asset of US$453,000 (2009: US$427,000) in respect of net operating losses of
US$1,332,000 (2009: US$1,253,000) in Germany and UK was not recognised up to the date of
divestiture of the Groups German and UK subsidiaries due to uncertainties regarding the timing of
the utilisation of these losses in the related tax jurisdictions in future periods.
 No deferred tax asset is recognised in respect of a capital loss forward of US$8,513,000 (2009:
US$6,138,000) in Ireland as it is not probable that there will be future capital gains against
which to offset these capital losses. The increase in the capital loss in 2010 is due to the
divestiture of the assets and liabilities of the coagulation business in Ireland (see Note 3 for
further information).
 Unrecognised deferred tax liabilities
 At December 31, 2010 and 2009, there was no recognised or unrecognised deferred tax liability for
taxes that would be payable on the unremitted earnings of certain of the Groups subsidiaries. The
Company is able to control the timing of the reversal of the temporary differences of its
subsidiaries and it is probable that these temporary differences will not reverse in the
foreseeable future.
  101




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
 13.
    
    DEFERRED TAX ASSETS AND LIABILITIES (CONTINUED)
 Movement in temporary differences during the year
 BalanceBalance
    
    
    Recognised in
    
    
    Recognised
    
    
    December 31,January, 1 2010
    
    
    income
    
    
    in equity
    
    
    2010US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Property, plant and equipment
    
    
    2,682
    
    
    
    (894
    )
    
    
    
    
    
    
    1,788Intangible assets
    
    
    (6,343
    )
    
    
    312
    
    
    
    
    
    
    
    (6,031
    )Inventories
    
    
    1,253
    
    
    
    (298
    )
    
    
    
    
    
    
    955Provisions
    
    
    118
    
    
    
    176
    
    
    
    
    
    
    
    294Other items
    
    
    (680
    )
    
    
    324
    
    
    
    (6
    )
    
    
    (362
    )Tax value of loss
carryforwards recognised
    
    
    561
    
    
    
    285
    
    
    
    
    
    
    
    846(2,409
    )
    
    
    (95
    )
    
    
    (6
    )
    
    
    (2,510
    )
 BalanceBalance
    
    
    Recognised in
    
    
    Recognised
    
    
    December 31,January, 1 2009
    
    
    income
    
    
    in equity
    
    
    2009US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Property, plant and equipment
    
    
    400
    
    
    
    2,282
    
    
    
    
    
    
    
    2,682Intangible assets
    
    
    (3,069
    )
    
    
    (3,274
    )
    
    
    
    
    
    
    (6,343
    )Inventories
    
    
    1,214
    
    
    
    39
    
    
    
    
    
    
    
    1,253Provisions
    
    
    255
    
    
    
    (137
    )
    
    
    
    
    
    
    118Other items
    
    
    (419
    )
    
    
    (264
    )
    
    
    3
    
    
    
    (680
    )Tax value of loss
carryforwards recognised
    
    
    297
    
    
    
    264
    
    
    
    
    
    
    
    561(1,322
    )
    
    
    (1,090
    )
    
    
    3
    
    
    
    (2,409
    )
 14.
    
    OTHER ASSETS
 December 31, 2010
    
    
    December 31, 2009US$000
    
    
    US$000Deferred Consideration
    
    
    11,138
    
    
    
    Finance lease receivables (see note 16)
    
    
    412
    
    
    
    1,106Other assets
    
    
    73
    
    
    
    10611,623
    
    
    
    1,212
 The deferred consideration arises as a result of the sale of the coagulation business (see note 3)
and comprises US$11,250,000 of a receivable due from Diagnostica Stago in May 2012  shown net of
US$112,000 of deferred interest income. A further US$11,250,000 (net US$10,804,000) is receivable
in May 2011 and, as this falls due within one year, it is shown in Note 16, Trade and Other
Receivables.
 The Group leases instruments as part of its business. For details of future minimum finance lease
receivables with non-cancellable terms, please refer to note 16.
  102




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
 15.
    
    INVENTORIES
 December 31, 2010
    
    
    December 31, 2009US$000
    
    
    US$000Raw materials and consumables
    
    
    4,516
    
    
    
    9,191Work-in-progress
    
    
    4,676
    
    
    
    10,478Finished goods
    
    
    8,384
    
    
    
    19,52917,576
    
    
    
    39,198
 All inventories are stated at the lower of cost or net realisable value. Total inventories for the
Group are shown net of provisions of US$6,400,000 (2009: US$12,566,000). Note 3 outlines the net
inventories which were transferred to Diagnostica Stago during the year as part of the divestiture
of the Coagulation business.
 The movement on the inventory provision for the three year period to December 31, 2010 is as
follows:
 December 31,
    
    
    December 31,
    
    
    December 31,2010
    
    
    2009
    
    
    2008US$000
    
    
    US$000
    
    
    US$000Opening provision at January 1
    
    
    12,566
    
    
    
    16,461
    
    
    
    18,234Charged during the year
    
    
    3,006
    
    
    
    2,064
    
    
    
    1,570Utilised during the year
    
    
    (8,440
    )
    
    
    (4,751
    )
    
    
    (2,182
    )Released during the year
    
    
    (732
    )
    
    
    (1,208
    )
    
    
    (1,161
    )Closing provision at December 31
    
    
    6,400
    
    
    
    12,566
    
    
    
    16,461
 16.
    
    TRADE AND OTHER RECEIVABLES
 December 31, 2010
    
    
    December 31, 2009US$000
    
    
    US$000Trade receivables, net of impairment losses
    
    
    11,762
    
    
    
    20,120Deferred consideration
    
    
    10,804
    
    
    
    Prepayments
    
    
    2,331
    
    
    
    1,798Value added tax
    
    
    204
    
    
    
    67Finance lease receivables
    
    
    229
    
    
    
    692Other receivables
    
    
    199
    
    
    
    25425,529
    
    
    
    22,931
 The deferred consideration arises as a result of the sale of the coagulation business (see note 3)
and comprises US$11,250,000 of a receivable due from Diagnostica Stago in May 2011  shown net of
US$446,000 of deferred interest income. A further US$11,250,000 (net US$11,138,000) is receivable
in May 2012 and, as this falls due after one year, it is shown in Note 14, Other Assets.
 Trade receivables are shown net of an impairment losses provision of US$1,443,000 (2009:
US$855,000) (see note 27).
  103




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
 16.
    
    TRADE AND OTHER RECEIVABLES (CONTINUED)
 Leases as lessor
 (i)
    
    Finance lease commitments  Group as lessor
 The Group leases instruments as part of its business. Future minimum finance lease receivables with
non-cancellable terms are as follows:
 December 31, 2010US$000MinimumGross
    
    
    Unearned
    
    
    Paymentsinvestment
    
    
    income
    
    
    receivableLess than one year
    
    
    367
    
    
    
    138
    
    
    
    229Between one and five years (note 14)
    
    
    628
    
    
    
    216
    
    
    
    412995
    
    
    
    354
    
    
    
    641
 December 31, 2009US$000MinimumGross
    
    
    Unearned
    
    
    paymentsinvestment
    
    
    income
    
    
    receivableLess than one year
    
    
    1,002
    
    
    
    310
    
    
    
    692Between one and five years (note 14)
    
    
    1,559
    
    
    
    453
    
    
    
    1,1062,561
    
    
    
    763
    
    
    
    1,798
 In 2010, the Group classified future minimum lease receivables between one and five years of
US$412,000 (2009: US$1,106,000) to Other Assets, see note 14. Under the terms of the lease
arrangements, no contingent rents are receivable.
 (ii)
    
    Operating lease commitments  Group as lessor
 The Group has leased a facility consisting of 9,000 square feet in Dublin, Ireland. This property
has been sub-let by the Group. The lease contains a clause to enable upward revision of the rent
charge on a periodic basis. The Group also leases instruments under operating leases as part of
its business.
 Future minimum rentals receivable under non-cancellable operating leases are as follows:
 December 31, 2010US$000Land andbuildings
    
    
    Instruments
    
    
    TotalLess than one year
    
    
    209
    
    
    
    1,759
    
    
    
    1,968Between one and five years
    
    
    838
    
    
    
    689
    
    
    
    1,527More than five years
    
    
    157
    
    
    
    
    
    
    
    1571,204
    
    
    
    2,448
    
    
    
    3,652
 December 31, 2009US$000Land andbuildings
    
    
    Instruments
    
    
    TotalLess than one year
    
    
    228
    
    
    
    1,992
    
    
    
    2,220Between one and five years
    
    
    911
    
    
    
    852
    
    
    
    1,763More than five years
    
    
    399
    
    
    
    
    
    
    
    3991,538
    
    
    
    2,844
    
    
    
    4,382
  104




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
 17.
    
    CASH AND CASH EQUIVALENTS
 December 31, 2010
    
    
    December 31, 2009US$000
    
    
    US$000Cash at bank and in hand
    
    
    2,449
    
    
    
    4,711Short-term deposits
    
    
    55,553
    
    
    
    1,367Cash and cash equivalents in the statements of cash flows
    
    
    58,002
    
    
    
    6,078
 Cash relates to all cash balances which are readily available at year end. Cash equivalents relate
to all cash balances on deposit, with a maturity of less than six months, which are not restricted.
See note 25 (c).
 18.
    
    CAPITAL AND RESERVES
 Share capital
 Class A Ordinary shares
    
    
    Class A Ordinary sharesIn thousands of shares
    
    2010
    
    
    2009In issue at January 1
    
    
    82,952
    
    
    
    82,017Issued for cash
    
    
    1,165
    
    
    
    935In issue at December 31
    
    
    84,117
    
    
    
    82,952
 Class B Ordinary shares
    
    
    Class B Ordinary sharesIn thousands of shares
    
    2010
    
    
    2009In issue at January 1
    
    
    700
    
    
    
    700Issued for cash
    
    
    
    
    
    
    In issue at December 31
    
    
    700
    
    
    
    700
 The Group had authorised share capital of 200,000,000 A ordinary shares of US$0.0109 each (2009:
200,000,000 A ordinary shares of US$0.0109 each) and 700,000 B ordinary shares of US$0.0109
each (2009: 700,000 B ordinary shares of US$0.0109 each) as at December 31, 2010.
 (a)
    
    During 2010, the Group issued 1,165,000 A Ordinary shares from the exercise of warrants and
employee options for a consideration of US$1,023,000 settled in cash. The Group incurred
costs of US$64,000 in connection with the issue of shares.
 (b)
    
    During 2009, the Group issued 935,000 A Ordinary shares from the exercise of employee
options for a consideration of US$897,000 settled in cash. The Group incurred costs of
US$68,000 in connection with the issue of shares.
 (c)
    
    Since its incorporation the Group has not declared or paid dividends on its A Ordinary
Shares or B Ordinary Shares. In 2011 the Company announced that it intended to commence a
dividend policy, to be paid once a year. In this regard, the Board have proposed a final
dividend of 10 cent per ADR in respect of 2010 and this proposal will be submitted to
shareholders for their approval at the next Annual General Meeting of the Company. As
provided in the Articles of Association of the Company, dividends or other distributions are
declared and paid in US Dollars.
 (d)
    
    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
 The currency translation reserve comprises all foreign exchange differences arising from the
translation of the financial statements of foreign currency denominated operations of the Group
since January 1, 2004.
  105




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
 18.
    
    CAPITAL AND RESERVES (CONTINUED)
 Warrant reserve
 The warrant reserve comprises the equity component of share warrants issued by the Group for the
purpose of fundraising. The Group calculates the fair value of warrants at the date of issue
taking the amount directly to a separate reserve within equity. The fair value is calculated using
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.
 In accordance with IFRS 2, 3,477,068 warrants with a fair value of US$4,529,000 (2009: 3,437,068
warrants with a fair value of US$4,498,000) have been classified as a separate reserve. There were
no new warrants issued by the Group in 2009.
 The following input assumptions were made to fair value the warrants issued by the Group during
2010:
 Fair value at date of measurement
    
    US$
    0.77Share price
    
    US$
    1.50Exercise price
    
    US$
    1.50Expected volatility
    
    
    72.65
    %Contractual life
    
    7 yearsRisk free rate
    
    
    1.62
    %Expected dividend yield
    
    
    
 The following input assumptions were made to fair value the warrants issued by the Group during
2008:
 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
    
    
    
 Hedging reserve
 The hedging reserve comprises the effective portion of the cumulative net change in the fair value
of cash flow hedging instruments related to hedged transactions entered into but not yet
crystallised.
 19.
    
    SHARE OPTIONS AND SHARE WARRANTS
 Warrants
 The Company granted warrants to purchase 2,178,244 Class A Ordinary Shares (vesting immediately)
in April 2008. These warrants were issued at an exercise price of US$1.39 and have a term of five
years.
 The Company granted warrants to purchase 40,000 Class A Ordinary Shares (vesting immediately) in
April 2010. These warrants were issued at an exercise price of US$1.50 and have a seven year life.
 December 31, 2010
    
    
    December 31, 2009Outstanding at beginning of year
    
    
    2,178,244
    
    
    
    3,437,068Granted
    
    
    40,000
    
    
    
    Exercised
    
    
    (546,000
    )
    
    
    Forfeited
    
    
    
    
    
    
    (1,258,824
    )Outstanding at end of year
    
    
    1,672,244
    
    
    
    2,178,244
  106




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
 19.
    
    SHARE OPTIONS AND SHARE WARRANTS (CONTINUED)
 Options
 Under the terms of the Companys Employee Share Option Plans, options to purchase 9,281,427
(excluding warrants of 1,672,244) A Ordinary Shares were outstanding at December 31, 2010. Under
the Plans, options are granted to officers, employees and consultants of the Group at the
discretion of the Compensation Committee (designated by the board of directors), under the terms
outlined below.
 The terms and conditions of the grants are as follows, whereby all options are settled by physical
delivery of shares:
 Vesting conditions
 The options vest following a period of service by the officer or employee. The required period of
service is determined by the Compensation Committee at the date of grant of the options (usually
the date of approval by the Compensation Committee) and it is generally over a three to four year
period. There are no market conditions associated with the share option grants.
 Contractual life
 The term of an option is determined by the Compensation Committee, provided that the term may not
exceed seven years from the date of grant (some of the Groups earlier Plans had a ten year life).
All options will terminate 90 days after termination of the option holders employment, service or
consultancy with the Group (or one year after such termination because of death or disability)
except where a longer period is approved by the Board of Directors. Under certain circumstances
involving a change in control of the Group, the Compensation Committee may accelerate the
exercisability and termination of the options up to a maximum of one year.
 The number and weighted average exercise price of share options and warrants per ordinary share is
as follows (as required by IFRS 2, this information relates to all grants of share options and
warrants by the Group):
 Weighted-averageOptions and
    
    
    exercise price
    
    
    Rangewarrants
    
    
    US$
    
    
    US$Outstanding 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 year
    
    
    11,811,114
    
    
    
    2.01
    
    
    
    0.74 - 5.25Exercisable at end of year
    
    
    8,670,013
    
    
    
    2.27
    
    
    
    0.74 - 5.25Outstanding January 1, 2009
    
    
    11,811,114
    
    
    
    2.01
    
    
    
    0.74 - 5.25Granted
    
    
    2,220,000
    
    
    
    0.66
    
    
    
    0.66 - 0.66Exercised
    
    
    (934,456
    )
    
    
    0.96
    
    
    
    0.74 - 1.07Forfeited
    
    
    (2,447,948
    )
    
    
    3.52
    
    
    
    0.87 - 5.25Outstanding at end of year
    
    
    10,648,710
    
    
    
    1.48
    
    
    
    0.66 - 4.00Exercisable at end of year
    
    
    6,915,952
    
    
    
    1.84
    
    
    
    0.74 - 4.00Outstanding January 1, 2010
    
    
    10,648,710
    
    
    
    1.48
    
    
    
    0.66 - 4.00Granted
    
    
    3,760,000
    
    
    
    1.47
    
    
    
    0.97 - 2.00Exercised
    
    
    (1,410,156
    )
    
    
    1.02
    
    
    
    0.66 - 1.78Forfeited
    
    
    (2,044,883
    )
    
    
    1.96
    
    
    
    0.87 - 4.00Outstanding at end of year
    
    
    10,953,671
    
    
    
    1.44
    
    
    
    0.66 - 4.00Exercisable at end of year
    
    
    5,226,413
    
    
    
    1.70
    
    
    
    0.66 - 4.00
 The weighted average share price per A Ordinary share at the date of exercise for options
exercised in 2010 was US$1.65 (2009: US$1.05). There were no share options exercised in 2008.
  107




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
 19.
    
    SHARE OPTIONS AND SHARE WARRANTS (CONTINUED)
 The opening share price per A Ordinary share at the start of the financial year was US$1.04
(2009: US$0.40) (2008: US$1.68) and the closing share price at December 31, 2010 was US$2.20 (2009:
US$1.01) (2008: US$0.40). The average share price for the year ended December 31, 2010 was US$1.54.
 A summary of the range of prices for the Companys stock options and warrants for the year ended
December 31, 2010 follows:
 Outstanding
    
    
    ExercisableWeighted-
    
    
    
    
    
    
    
    
    
    
    Weighted-avg
    
    
    
    
    
    
    
    
    
    
    avgcontractual
    
    
    
    
    
    
    
    
    
    
    contractualWeighted-
    
    
    life
    
    
    
    
    
    
    Weighted-
    
    
    lifeNo. of
    
    
    avg exercise
    
    
    remaining
    
    
    No. of
    
    
    avg exercise
    
    
    remainingExercise price range
    
    options/warrants
    
    
    price
    
    
    (years)
    
    
    options/warrants
    
    
    price
    
    
    (years)US$0.66-US$0.99
    
    
    2,761,677
    
    
    
    0.72
    
    
    
    5.21
    
    
    
    638,336
    
    
    
    0.72
    
    
    
    4.88US$1.00-US$2.05
    
    
    6,430,244
    
    
    
    1.48
    
    
    
    4.47
    
    
    
    2,847,744
    
    
    
    1.47
    
    
    
    2.39US$2.06-US$2.99
    
    
    1,733,250
    
    
    
    2.41
    
    
    
    1.59
    
    
    
    1,711,833
    
    
    
    2.41
    
    
    
    1.57US$3.00-US$4.00
    
    
    28,500
    
    
    
    3.27
    
    
    
    0.69
    
    
    
    28,500
    
    
    
    3.27
    
    
    
    0.6910,953,671
    
    
    
    
    
    
    
    
    
    
    
    5,226,413
 The weighted-average remaining contractual life of options and warrants outstanding at December 31,
2009 was 4.19 years (2009: 3.88 years).
 A summary of the range of prices for the Companys stock options and warrants for the year ended
December 31, 2009 follows:
 Outstanding
    
    
    ExercisableWeighted-
    
    
    
    
    
    
    
    
    
    
    Weighted-avg
    
    
    
    
    
    
    
    
    
    
    avgcontractual
    
    
    
    
    
    
    
    
    
    
    contractualWeighted-
    
    
    life
    
    
    
    
    
    
    Weighted-
    
    
    lifeNo. of
    
    
    avg exercise
    
    
    remaining
    
    
    No. of
    
    
    avg exercise
    
    
    remainingExercise price range
    
    options
    
    
    price
    
    
    (years)
    
    
    options
    
    
    price
    
    
    (years)US$0.66-US$0.99
    
    
    3,275,000
    
    
    US$
    0.70
    
    
    
    6.12
    
    
    
    196,666
    
    
    US$
    0.74
    
    
    
    5.72US$1.00-US$2.05
    
    
    4,666,294
    
    
    US$
    1.47
    
    
    
    3.02
    
    
    
    4,141,040
    
    
    US$
    1.51
    
    
    
    2.76US$2.06-US$2.99
    
    
    2,551,916
    
    
    US$
    2.38
    
    
    
    2.74
    
    
    
    2,422,746
    
    
    US$
    2.39
    
    
    
    2.66US$3.00-US$5.25
    
    
    155,500
    
    
    US$
    3.21
    
    
    
    1.37
    
    
    
    155,500
    
    
    US$
    3.21
    
    
    
    1.3710,648,710
    
    
    
    
    
    
    
    
    
    
    
    6,915,952
 The recognition and measurement principles of IFRS 2 have been applied to share options granted
under the Companys Share Option Plans since November 7, 2002 which have not vested by January 1,
2005 in accordance with IFRS 2.
  108




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
 19.
    
    SHARE OPTIONS AND SHARE WARRANTS (CONTINUED)
 Charge for the year under IFRS 2
 The charge for the year is calculated based on the fair value of the options granted which have not
yet vested.
 The fair value of the options is expensed over the vesting period of the option. US$1,109,000 was
charged to the statement of operations in 2010, (2009: US$521,000), (2008: US$1,166,000) split as
follows:
 December 31,
    
    
    December 31,
    
    
    December 31,2010
    
    
    2009
    
    
    2008US$000
    
    
    US$000
    
    
    US$000Share-based payments  cost of sales
    
    
    29
    
    
    
    19
    
    
    
    51Share-based payments  research and development
    
    
    31
    
    
    
    15
    
    
    
    48Share-based payments  selling, general and
administrative
    
    
    1,049
    
    
    
    487
    
    
    
    1,067Total
    
    
    1,109
    
    
    
    521
    
    
    
    1,166
 The total share based payments charge for the year was US$1,240,000. However, a total of US$131,000
(2009: US$78,000) (2008: US$27,000) of research and development share based payments were
capitalised in intangible development project assets during the year.
 The fair value of services received in return for share options granted are measured by reference
to the fair value of share options granted. The estimate of the fair value of services received is
measured based on a trinomial model. The following are the input assumptions used in determining
the fair value of share options granted in 2010, 2009 and 2008:
 Key
    
    
    
    
    
    
    Key
    
    
    
    
    
    
    Keymanagement
    
    
    Other
    
    
    management
    
    
    Other
    
    
    management
    
    
    Otherpersonnel
    
    
    employees
    
    
    personnel
    
    
    employees
    
    
    personnel
    
    
    employees2010
    
    
    2010
    
    
    2009
    
    
    2009
    
    
    2008
    
    
    2008Weighted average
fair value at
measurement date
    
    US$
    0.86
    
    
    US$
    0.72
    
    
    US$
    0.38
    
    
    
    
    
    
    US$
    0.47
    
    
    US$
    0.39Total share options
granted
    
    
    2,500,000
    
    
    
    1,220,000
    
    
    
    2,220,000
    
    
    
    
    
    
    
    1,665,000
    
    
    
    535,000Weighted average
share price
    
    US$
    1.53
    
    
    US$
    1.34
    
    
    US$
    0.66
    
    
    
    
    
    
    US$
    0.89
    
    
    US$
    0.92Weighted average
exercise price
    
    US$
    1.53
    
    
    US$
    1.34
    
    
    US$
    0.66
    
    
    
    
    
    
    US$
    0.89
    
    
    US$
    0.92Weighted average
expected volatility
    
    
    64.86
    %
    
    
    68.97
    %
    
    
    63.31
    %
    
    
    
    
    
    
    51.61
    %
    
    
    46.79
    %Weighted average
expected life
    
    
    5.34
    
    
    
    4.33
    
    
    5.73 years
    
    
    
    
    
    
    6.36 years
    
    
    4.60 yearsWeighted average
risk free interest
rate
    
    
    2.04
    %
    
    
    1.78
    %
    
    
    2.47
    %
    
    
    
    
    
    
    2.77
    %
    
    
    3.28
    %Expected dividend
yield
    
    
    0
    %
    
    
    0
    %
    
    
    0
    %
    
    
    
    
    
    
    0
    %
    
    
    0
    %
 The expected life of the options is based on historical data and is not necessarily indicative of
exercise patterns that may occur. The expected volatility is based on the historic volatility
(calculated based on the expected life of the options). The Group has considered how future
experience may affect historical volatility. The profile and activities of the Group are not
expected to change in the immediate future and therefore Trinity Biotech would expect estimated
volatility to be consistent with historical volatility.
  109




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
 20.
    
    INTEREST-BEARING LOANS AND BORROWINGS
 This 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 27.
 December 31, 2010
    
    
    December 31, 2009Note
    
    
    US$000
    
    
    US$000Current liabilitiesFinance lease liabilities
    
    
    
    
    
    
    162
    
    
    
    791Bank loans, secured
    
    
    25
    (c)- Repayable by instalment
    
    
    
    
    
    
    
    
    
    
    4,890- Repayable not by instalment
    
    
    
    
    
    
    
    
    
    
    6,944162
    
    
    
    12,625Non-current liabilitiesFinance lease liabilities
    
    
    
    
    
    
    111
    
    
    
    1,470Bank loans, secured
    
    
    25
    (c)- Repayable by instalment
    
    
    
    
    
    
    
    
    
    
    17,761111
    
    
    
    19,231
 Bank loans
 During 2010 the Group repaid in full all outstanding bank loans following the receipt of the
proceeds from the sale of the Coagulation business (for further information, please refer to note
3). Before the repayment of these loans, Trinity Biotech had a US$48,340,000 club banking facility
with Allied Irish Bank plc and Bank of Scotland (Ireland) Limited (the banks). This facility
consisted of a US Dollar floating interest rate term loan of US$41,340,000 and a one year revolver
of US$7,000,000. Various covenants applied to these Group bank borrowings. At December 31, 2010,
the total amount outstanding under this facility amounted to US$NIL (2009: US$29,327,000, net of
unamortised funding costs of US$180,000).
 Finance lease liabilities
 Finance lease liabilities are payable as follows:
 December 31, 2010US$000Minimumleasepayments
    
    
    Interest
    
    
    PrincipalLess than one year
    
    
    172
    
    
    
    10
    
    
    
    162In more than one year, but not more than two
    
    
    113
    
    
    
    2
    
    
    
    111In more than two years but not more than five
    
    
    
    
    
    
    
    
    
    
    285
    
    
    
    12
    
    
    
    273
 December 31, 2009US$000Minimumleasepayments
    
    
    Interest
    
    
    PrincipalLess than one year
    
    
    909
    
    
    
    118
    
    
    
    791In more than one year, but not more than two
    
    
    904
    
    
    
    66
    
    
    
    838In more than two years but not more than five
    
    
    665
    
    
    
    32
    
    
    
    6332,478
    
    
    
    216
    
    
    
    2,262
 Under the terms of the lease arrangements, no contingent rents are payable.
  110




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
 20.
    
    INTEREST-BEARING LOANS AND BORROWINGS (CONTINUED)
 Terms and debt repayment schedule
 The terms and conditions of outstanding interest bearing loans and borrowings at December 31, 2010
are as follows:
 Nominalinterest
    
    
    Year of
    
    
    Fair
    
    
    Carrying
    
    
    Fair
    
    
    CarryingFacility
    
    Currency
    
    
    rate
    
    
    maturity
    
    
    Value
    
    
    Value
    
    
    Value
    
    
    ValueDecember 31, 2010
    
    
    December 31, 2009Fixed bank loans
    
    USD
    
    
    5.00% - 6.00
    %
    
    
    2010
    
    
    
    
    
    
    
    
    
    
    
    268
    
    
    
    268Floating (LIBOR) bank
loans
    
    USD
    
    
    2.53
    %
    
    
    2010
    
    
    
    
    
    
    
    
    
    
    
    29,327
    
    
    
    29,327Finance lease liabilities
    
    Euro
    
    
    5.16
    %
    
    
    2010 -2012
    
    
    
    273
    
    
    
    273
    
    
    
    2,268
    
    
    
    2,257Finance lease liabilities
    
    GBP
    
    
    7.72
    %
    
    
    2010
    
    
    
    
    
    
    
    
    
    
    
    5
    
    
    
    5Total interest-bearing
loans and borrowings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    273
    
    
    
    273
    
    
    
    31,868
    
    
    
    31,857
 21.
    
    TRADE AND OTHER PAYABLES
 December 31, 2010
    
    
    December 31, 2009US$000
    
    
    US$000Trade payables
    
    
    3,267
    
    
    
    3,693Payroll taxes
    
    
    74
    
    
    
    424Employee related social insurance
    
    
    85
    
    
    
    485Accrued liabilities
    
    
    7,379
    
    
    
    6,926Deferred income
    
    
    642
    
    
    
    1,31611,447
    
    
    
    12,844
 Included within accrued liabilities is an amount of US$89,000 which relates to termination costs
associated with the restructuring announced in 2010 (see note 7).
 22.
    
    PROVISIONS
 December 31, 2010
    
    
    December 31, 2009US$000
    
    
    US$000Provisions
    
    
    50
    
    
    
    50
 Movement on provisions during the year is as follows:
 December 31, 2010
    
    
    December 31, 2009US$000
    
    
    US$000Balance at January 1
    
    
    50
    
    
    
    50Provisions released during the year
    
    
    
    
    
    
    Balance at December 31
    
    
    50
    
    
    
    50
 During 2010 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, 2010 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, 2010.
  111




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
 23.
    
    OTHER PAYABLES DUE AFTER ONE YEAR
 December 31, 2010
    
    
    December 31, 2009US$000
    
    
    US$000Other payables
    
    
    30
    
    
    
    5930
    
    
    
    59
 24.
    
    BUSINESS COMBINATIONS
 Acquisitions 2008  2010
 There were no acquisitions made by the Group between 2008 and 2010.
 2007 Acquisitions
 In 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
  112




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
 24.
    
    BUSINESS COMBINATIONS (CONTINUED)
 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 cashflow
 Due 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
  113




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
 25.
    
    COMMITMENTS AND CONTINGENCIES
 (a)
    
    Capital Commitments
 The Group has no capital commitments authorised and contracted for as at December 31, 2010 (2009:
US$Nil).
 (b)
    
    Leasing Commitments
 The 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$2,411,000 (2009: US$4,289,000) payable on leases of buildings at Dublin and Bray, Ireland,
Jamestown, New York, Kansas City, Missouri, Acton, Massachusetts and Carlsbad, California.
US$42,000 (2009: US$415,000) of these operating lease commitments relates to leases whose
remaining term will expire within one year, US$172,000 (2009: US$406,000) relates to leases whose
remaining term expires between one and two years, US$345,000 (2009: US$395,000) between two and
five years and the balance of US$1,852,000 (2009: US$3,073,000) relates to leases which expire
after more than five years. See note 26 for related party leasing arrangements.Future minimum operating lease commitments with non-cancellable terms in excess of one year are as follows:
 Year ended2010Operating leasesUS$0002011
    
    
    2,4112012
    
    
    2,2992013
    
    
    2,2282014
    
    
    2,2212015
    
    
    2,099Later years
    
    
    25,298Total lease obligations
    
    
    36,556
 Year ended2009Operating leasesUS$0002010
    
    
    4,2892011
    
    
    3,7432012
    
    
    3,4862013
    
    
    3,4822014
    
    
    3,317Later years
    
    
    35,503Total lease obligations
    
    
    53,820
 For future minimum finance lease commitments, in respect of which the lessor has a charge over the
related assets, see note 20.
 (c)
    
    Bank Security
 The Group repaid in full its bank borrowings in May 2010. In 2009 the Groups bank borrowings
(note 20) were 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. These charges were
released following the repayment of the loans in May 2010.
  114




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
 25.
    
    COMMITMENTS AND CONTINGENCIES (CONTINUED)
 (d)
    
    Section 17 Guarantees
 Pursuant to the provisions of Section 17, Irish Companies (Amendment) Act, 1986, the Company has
guaranteed the liabilities of Trinity Biotech Manufacturing Limited, Trinity Research Limited,
Benen Trading Limited and Trinity Biotech Financial Services Limited subsidiary undertakings in the
Republic of Ireland, for the financial year to December 31, 2010 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 guarantees with third parties.
 (e)
    
    Government Grant Contingencies
 The 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, 2010. However if the income were
to become repayable, the maximum amounts repayable as at December 31, 2010 would amount to
US$3,373,000 (2009: US$3,646,000).
 (f)
    
    Litigation
 In 2010, Laboratoires Nephrotek, formerly a distributor for Trinity Biotech, took a legal action in
France against the Group, claiming damages of US$0.8 million. They claim that certain instruments
supplied by Trinity Biotech did not operate properly in the field. No court hearings have occurred
in relation to this case yet. Trinity Biotech will be defending the claim. There are also a small
number of legal cases being brought against the Group by certain of its former employees in the
previously owned French subsidiary, Trinity Biotech France S.à.r.l. The ultimate resolution of the
aforementioned proceedings is not expected to have a material adverse effect on our financial
position, results of operations or cash flows.
 26.
    
    RELATED PARTY TRANSACTIONS
 The Group has related party relationships with its subsidiaries, and with its directors and
executive officers.
 Leasing arrangements with related parties
 The 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$254,000). 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$367,000). The lease on this property was assigned to Diagnostica Stago in May,
2010 following the divestiture of the Coagulation business.
 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$509,000) is payable from January 1, 2004. There was a rent review
performed on this premises in 2009 and further to this review, there was no change to the annual
rental charge.
 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$1,051,000).
 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.
  115




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
 26.
    
    RELATED PARTY TRANSACTIONS (CONTINUED)
 Compensation of key management personnel of the Group
   December 31, 2010
    
    
    December 31, 2009US$000
    
    
    US$000Short-term employee benefits
    
    
    1,299
    
    
    
    1,244Performance related bonus
    
    
    1,050
    
    
    
    Post-employment benefits
    
    
    155
    
    
    
    136Equity compensation benefits
    
    
    828
    
    
    
    3673,332
    
    
    
    1,747
  Directors and Company Secretarys interests in the Companys shares and share option plan
 A Ordinary Shares
    
    
    Share optionsAt January 1, 2010
    
    
    5,671,106
    
    
    
    5,667,086Exercised
    
    
    
    
    
    
    (566,664
    )Granted
    
    
    
    
    
    
    2,500,000Expired Options
    
    
    
    
    
    
    (248,333
    )Shares purchased/(sold) during the year
    
    
    (140,000
    )
    
    
    At December 31, 2010
    
    
    5,531,106
    
    
    
    7,352,089
 A Ordinary Shares
    
    
    Share optionsAt January 1, 2009
    
    
    5,520,110
    
    
    
    4,114,085Exercised
    
    
    
    
    
    
    (471,955
    )Granted
    
    
    
    
    
    
    2,220,000Expired Options
    
    
    
    
    
    
    (195,044
    )Shares purchased
    
    
    150,996
    
    
    
    At December 31, 2009
    
    
    5,671,106
    
    
    
    5,667,086
    116




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
 26.
    
    RELATED PARTY TRANSACTIONS (CONTINUED)
   27.
    
    DERIVATIVES AND FINANCIAL INSTRUMENTS
  Effective interest rate and repricing analysis
  As at December 31,
    
    
    
    
    
    Effective2010
    
    
    
    
    
    interest
    
    
    Total
    
    
    6 mths or less
    
    
    6-12 mths
    
    
    1-2 years
    
    
    2-5 yearsUS$000
    
    Note
    
    
    rate
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000
    
    
    US$000Cash and cash
equivalents
    
    
    17
    
    
    
    3.24
    %
    
    
    58,002
    
    
    
    58,002
    
    
    
    
    
    
    
    
    
    
    
    Deferred Consideration
    
    
    14/16
    
    
    
    3.1
    %
    
    
    21,942
    
    
    
    10,804
    
    
    
    
    
    
    
    11,138Secured bank loans 
floating
    
    
    20
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Secured bank loans 
fixed
    
    
    20
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Finance lease
liabilities  fixed
    
    
    20
    
    
    
    5.08
    %
    
    
    (273
    )
    
    
    
    
    
    
    
    
    
    
    (273
    )
    
    
    Total
    
    
    
    
    
    
    
    
    
    
    79,671
    
    
    
    68,806
    
    
    
    
    
    
    
    10,865
    
    
    
    
  117




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
 27.
    
    DERIVATIVES AND FINANCIAL INSTRUMENTS (CONTINUED)
 As at December 31,2009
    
    
    
    
    
    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
    
    
    
    0.2
    %
    
    
    6,078
    
    
    
    6,078
    
    
    
    
    
    
    
    
    
    
    
    Secured bank loans
 floating
    
    
    20
    
    
    
    2.53
    %
    
    
    (29,327
    )
    
    
    (29,327
    )
    
    
    
    
    
    
    
    
    
    
    Secured bank loans
 fixed
    
    
    20
    
    
    
    6.00
    %
    
    
    (268
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (268
    )Finance lease
liabilities  fixed
    
    
    20
    
    
    
    6.61
    %
    
    
    (2,261
    )
    
    
    (5
    )
    
    
    
    
    
    
    (305
    )
    
    
    (1,951
    )Total
    
    
    
    
    
    
    
    
    
    
    (25,778
    )
    
    
    (23,254
    )
    
    
    
    
    
    
    (305
    )
    
    
    (2,219
    )
  Interest rate risk
   Interest rate profile of financial liabilities
  December 31, 2010
    
    
    December 31, 2009US$000
    
    

US$000Fixed rate instrumentsFixed rate financial liabilities
    
    
    (273
    )
    
    
    (2,529
    )Financial assets
    
    
    21,942
    
    
    
    Variable rate instrumentsFinancial assets
    
    
    58,002
    
    
    
    6,078Floating rate financial liabilities
    
    
    
    
    
    
    (29,327
    )79,671
    
    
    
    (25,778
    )
  December 31, 2010
    
    
    December 31, 2009Fixed rate financial liabilitiesWeighted average interest rate
    
    
    5.08
    %
    
    
    6.21
    %Weighted average period for which rate is fixed
    
    1.59 years
    
    
    2.82 years
    118




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
 27.
    
    DERIVATIVES AND FINANCIAL INSTRUMENTS (CONTINUED)
 Fair value sensitivity analysis for fixed rate instruments
  Cash flow sensitivity analysis for variable rate instruments
  Fair Values
  Cash flow
    
    
    
    
    
    
    TotalLoans and
    
    
    hedge
    
    
    Assets/(Liabilities)
    
    
    carrying
    
    
    FairNote
    
    
    receivables
    
    
    derivatives
    
    
    at amortised cost
    
    
    amount
    
    
    ValueDecember 31, 2010Trade receivables
    
    
    16
    
    
    
    11,762
    
    
    
    
    
    
    
    
    
    
    
    11,762
    
    
    
    11,762Cash and cash equivalents
    
    
    17
    
    
    
    58,002
    
    
    
    
    
    
    
    
    
    
    
    58,002
    
    
    
    58,002Finance lease receivable
    
    
    14, 16
    
    
    
    641
    
    
    
    
    
    
    
    
    
    
    
    641
    
    
    
    641Net Deferred
Consideration Receivable
    
    
    14, 16
    
    
    
    21,942
    
    
    
    
    
    
    
    
    
    
    
    21,942
    
    
    
    21,942Grant income receivable
    
    
    
    
    
    
    167
    
    
    
    
    
    
    
    
    
    
    
    167
    
    
    
    167Finance lease liabilities
    
    
    20
    
    
    
    
    
    
    
    
    
    
    
    (273
    )
    
    
    (273
    )
    
    
    (273
    )Trade and other payables
(excluding deferred
revenue)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (11,318
    )
    
    
    (11,318
    )
    
    
    (11,318
    )Other payables
    
    
    23
    
    
    
    
    
    
    
    
    
    
    
    (30
    )
    
    
    (30
    )
    
    
    (30
    )Provisions
    
    
    22
    
    
    
    
    
    
    
    
    
    
    
    (50
    )
    
    
    (50
    )
    
    
    (50
    )92,514
    
    
    
    
    
    
    
    (11,671
    )
    
    
    80,843
    
    
    
    80,843
 Cash flow
    
    
    Liabilities at
    
    
    TotalLoans and
    
    
    hedge
    
    
    amortised
    
    
    carrying
    
    
    FairNote
    
    
    receivables
    
    
    derivatives
    
    
    cost
    
    
    amount
    
    
    ValueDecember 31, 2009Trade receivables
    
    
    16
    
    
    
    20,120
    
    
    
    
    
    
    
    
    
    
    
    20,120
    
    
    
    20,120Cash and cash equivalents
    
    
    17
    
    
    
    6,078
    
    
    
    
    
    
    
    
    
    
    
    6,078
    
    
    
    6,078Finance lease receivable
    
    
    14, 16
    
    
    
    1,798
    
    
    
    
    
    
    
    
    
    
    
    1,798
    
    
    
    1,798Forward contracts used
for hedging
    
    
    
    
    
    
    
    
    
    
    (58
    )
    
    
    
    
    
    
    (58
    )
    
    
    (58
    )Grant income receivable
    
    
    
    
    
    
    201
    
    
    
    
    
    
    
    
    
    
    
    201
    
    
    
    201Secured bank loans
    
    
    20
    
    
    
    
    
    
    
    
    
    
    
    (29,595
    )
    
    
    (29,595
    )
    
    
    (29,595
    )Finance lease liabilities
    
    
    20
    
    
    
    
    
    
    
    
    
    
    
    (2,261
    )
    
    
    (2,261
    )
    
    
    (2,273
    )Trade and other payables
(excluding deferred
revenue)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (11,528
    )
    
    
    (11,528
    )
    
    
    (11,528
    )Other payables
    
    
    23
    
    
    
    
    
    
    
    
    
    
    
    (59
    )
    
    
    (59
    )
    
    
    (59
    )Provisions
    
    
    22
    
    
    
    
    
    
    
    
    
    
    
    (50
    )
    
    
    (50
    )
    
    
    (50
    )28,197
    
    
    
    (58
    )
    
    
    (43,493
    )
    
    
    (15,354
    )
    
    
    (15,366
    )
  119




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
 27.
    
    DERIVATIVES AND FINANCIAL INSTRUMENTS (CONTINUED)
 Interest rates used for determining fair value
  December 31, 2010
    
    
    December 31, 2009Deferred Consideration
    
    
    3.10
    %
    
    
    Loans and borrowings
    
    
    
    
    
    
    2.53
    %Leases
    
    
    5.02% - 5.29
    %
    
    
    5.66% - 5.82
    %
  Liquidity risk
   Carrying
    
    
    Contractual
    
    
    6 mths or
    
    
    6 mths-As at December 31, 2010
    
    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
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Secured bank loans  fixed
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Finance lease liabilities
 fixed
    
    
    273
    
    
    
    285
    
    
    
    86
    
    
    
    86
    
    
    
    113
    
    
    
    Trade & other payables
    
    
    11,447
    
    
    
    11,447
    
    
    
    11,447
    
    
    
    
    
    
    
    
    
    
    
    11,720
    
    
    
    11,732
    
    
    
    11,533
    
    
    
    86
    
    
    
    113
    
    
    
    
 Carrying
    
    
    Contractual
    
    
    6 mths or
    
    
    6 mths-As at December 31, 2009
    
    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
    
    
    29,327
    
    
    
    30,268
    
    
    
    9,660
    
    
    
    2,592
    
    
    
    6,549
    
    
    
    11,467Secured bank loans  fixed
    
    
    268
    
    
    
    288
    
    
    
    56
    
    
    
    56
    
    
    
    112
    
    
    
    64Finance lease liabilities
fixed
    
    
    2,261
    
    
    
    2,478
    
    
    
    457
    
    
    
    452
    
    
    
    898
    
    
    
    671Trade & other payables
    
    
    12,844
    
    
    
    12,844
    
    
    
    12,844
    
    
    
    
    
    
    
    
    
    
    
    44,700
    
    
    
    45,878
    
    
    
    23,017
    
    
    
    3,100
    
    
    
    7,559
    
    
    
    12,202
   120




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
 27.
    
    DERIVATIVES AND FINANCIAL INSTRUMENTS (CONTINUED)
 Foreign exchange risk
     Sensitivity analysis
  Other equityProfit or loss
    
    
    movementsUS$000
    
    
    US$000December 31, 2010Euro
    
    
    (1,806
    )
    
    
    December 31, 2009Euro
    
    
    2,009
    
    
    
    5Pound Sterling
    
    
    (416
    )
    
    
    
  Credit Risk
     121




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
 27.
    
    DERIVATIVES AND FINANCIAL INSTRUMENTS (CONTINUED)
 Exposure to credit risk
  Carrying Value
    
    
    Carrying ValueDecember 31, 2010
    
    
    December 31, 2009US$000
    
    
    US$000Third party trade receivables
    
    
    11,762
    
    
    
    20,120Finance lease income receivable
    
    
    641
    
    
    
    1,798Cash & cash equivalents
    
    
    58,002
    
    
    
    6,078Net Deferred Consideration
    
    
    21,942
    
    
    
    Grant income receivable
    
    
    167
    
    
    
    20192,514
    
    
    
    28,197
  Carrying Value
    
    
    Carrying ValueDecember 31, 2010
    
    
    December 31, 2009US$000
    
    
    US$000United States
    
    
    6,175
    
    
    
    10,187Euro-zone countries
    
    
    2,652
    
    
    
    3,215UK
    
    
    701
    
    
    
    599Other European countries
    
    
    106
    
    
    
    732Other regions
    
    
    2,769
    
    
    
    7,18512,403
    
    
    
    21,918
  Carrying Value
    
    
    Carrying ValueDecember 31, 2010
    
    
    December 31, 2009US$000
    
    
    US$000End-user customers
    
    
    6,366
    
    
    
    11,524Distributors
    
    
    5,497
    
    
    
    9,742Non-governmental organisations
    
    
    540
    
    
    
    65212,403
    
    
    
    21,918
   122




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
 27.
    
    DERIVATIVES AND FINANCIAL INSTRUMENTS (CONTINUED)
 Impairment Losses
  Gross
    
    
    Impairment
    
    
    Gross
    
    
    ImpairmentIn thousands of US$
    
    2010
    
    
    2010
    
    
    2009
    
    
    2009Not past due
    
    
    6,099
    
    
    
    35
    
    
    
    13,388
    
    
    
    102Past due 0-30 days
    
    
    3,459
    
    
    
    19
    
    
    
    3,817
    
    
    
    6Past due 31-120 days
    
    
    2,039
    
    
    
    25
    
    
    
    962
    
    
    
    29Greater than 120 days
    
    
    1,608
    
    
    
    1,364
    
    
    
    2,808
    
    
    
    71813,205
    
    
    
    1,443
    
    
    
    20,975
    
    
    
    855
  In thousands of US$
    
    2010
    
    
    2009
    
    
    2008Balance at January 1
    
    
    855
    
    
    
    619
    
    
    
    657Charged to costs and expenses
    
    
    717
    
    
    
    302
    
    
    
    544Amounts recovered during the year
    
    
    (13
    )
    
    
    (22
    )
    
    
    (82
    )Amounts written off during the year
    
    
    (116
    )
    
    
    (44
    )
    
    
    (500
    )Balance at December 31
    
    
    1,443
    
    
    
    855
    
    
    
    619
  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.
   123




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
 28.
    
    2008 IMPAIRMENT CHARGES AND RESTRUCTURING EXPENSES
  Impairment of Assets
   Impairment
    
    
    Restructuring
    
    
    TotalUS$000
    
    
    US$000
    
    

US$000Selling, general & administration expensesImpairment of PP&E
    
    
    
    
    
    
    13,095
    
    
    
    
    
    
    
    13,095Impairment of goodwill and other
intangible assets
    
    
    
    
    
    
    71,684
    
    
    
    
    
    
    
    71,684Impairment of prepayments
    
    
    
    
    
    
    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 2008 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.  124




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
 29.
    
    POST BALANCE SHEET EVENTS
 Acquisition of Phoenix Bio-tech Corp.
    
    
    Consideration of US$2,500,000. US$1,000,000 was payable on closing and the
remaining US$1,500,000 is payable in four instalments in the period April 2011 to
January 2012.
 
    
    The consideration of US$2,500,000 includes acquired net working capital of
approximately US$500,000.
  
    
    A qualitative description of the factors that make up the goodwill to be recognised,
 
    
    Details of the indemnification assets,
 
    
    Details of acquired receivables,
 
    
    The amounts recognised as of the acquisition date for each major class of asset
acquired and liability assumed,
 
    
    Details of contingent liabilities recognised; and
 
    
    The total amount of goodwill that is expected to be deductible for tax purposes.
 Dividend
  30.
    
    ACCOUNTING ESTIMATES AND JUDGEMENTS
   Key sources of estimation uncertainty
   125




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
 30.
    
    ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)
 Critical accounting judgements in applying the Groups accounting policies
  Research and development expenditure
   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
   126




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
 30.
    
    ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)
 Accounting for income taxes
     127




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
 31.
    
    GROUP UNDERTAKINGS
  Principal Country ofincorporation andName and registered office
    
    Principal activity
    
    operation
    
    Group % holdingTrinity Biotech plc
IDA Business Park, Bray,
Co. Wicklow, Ireland
    
    Investment and holding company
    
    Ireland
    
    Holding companyTrinity Biotech Manufacturing Limited
IDA Business Park, Bray,
Co. Wicklow, Ireland
    
    Manufacture and sale of diagnostic test kits
    
    Ireland
    
    
    100
    %Trinity Research Limited
IDA Business Park, Bray,
Co. Wicklow, Ireland
    
    Research and development
    
    Ireland
    
    
    100
    %Benen Trading Limited
IDA Business Park, Bray,
Co. Wicklow, Ireland
    
    Trading
    
    Ireland
    
    
    100
    %Trinity Biotech Manufacturing Services Limited
IDA Business Park, Bray,
Co. Wicklow, Ireland
    
    Engineering services
    
    Ireland
    
    
    100
    %Trinity Biotech Financial Services Limited
IDA Business Park, Bray,
Co Wicklow, Ireland
    
    Provision of financial services
    
    Ireland
    
    
    100
    %Trinity Biotech Inc
Girts Road, Jamestown, NY 14702, USA
    
    Holding Company
    
    U.S.A.
    
    
    
    100
    %Clark Laboratories Inc
Trading as Trinity Biotech (USA)
Girts Road, Jamestown
NY14702, USA
    
    Manufacture and sale of diagnostic test kits
    
    U.S.A.
    
    
    
    100
    %Mardx Diagnostics Inc
5919 Farnsworth Court
Carlsbad
CA 92008, USA
    
    Manufacture and sale of diagnostic test kits
    
    U.S.A.
    
    
    
    100
    %Fitzgerald Industries International, Inc
2711 Centerville Road, Suite 400
Wilmington, New Castle
Delaware, 19808, USA
    
    Management services company
    
    U.S.A.
    
    
    
    100
    %Biopool US Inc (trading as Trinity Biotech Distribution)
Girts Road, Jamestown
NY14702, USA
    
    Sale of diagnostic test kits
    
    U.S.A.
    
    
    
    100
    %Primus Corporation
4231 E 75th Terrace
Kansas City,
MO 64132, USA
    
    Manufacture and sale of diagnostic test kits and instrumentation
    
    U.S.A.
    
    
    
    100
    %
  128




---



##### Table of Contents



NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2010
 32.
    
    AUTHORISATION FOR ISSUE
   129




---



##### Table of Contents



Signatures
  TRINITY BIOTECH PLCBy:
    
    RONAN OCAOIMH

Mr Ronan OCaoimhDirector/Chief Executive OfficerDate: April 14, 2011By:
    
    KEVIN TANSLEY

Mr Kevin TansleyCompany secretary/Chief Financial OfficerDate: April 14, 2011
  130




---



##### Table of Contents



Item 19
 Exhibits
 Exhibit No.
    
    Description of Exhibit10
    c
    
    Purchase and Sale Agreement of the Diagnostic Coagulation Business12.1
    
    
    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 (GT)
  131