Trinity Biotech PLC (TRIB) 2011 Q1 法說會逐字稿

Hello and welcome to the Trinity Biotech reports first-quarter 2011 financial results conference call. All participants will be in listen-only mode. (Operator Instructions). After today's presentation, there will be an opportunity to ask questions. (Operator Instructions). Please note this event is being recorded. And I would now like to turn the conference over to Joe Diaz of Lytham Partners. Please go ahead.

Thank you, Amy, and thank all of you for joining us today to review the financial results for Trinity Biotech for the first quarter ended March 31, 2011.

As Amy indicated, my name is Joe Diaz. I'm with Lytham Partners. We are the investor relations consulting firm for Trinity Biotech.

With us on the call representing the company today are Mr. Ronan O'Caoimh, Chairman and Chief Executive Officer; Mr. Kevin Tansley, Chief Financial Officer; and Mr. Rory Nealon, Chief Property Officer. At the conclusion of today's prepared remarks, we will open the call for a question-and-answer session.

If anyone participating on today's call does not have a full text copy of the release, you can retrieve it off the company's website at TrinityBiotech.com or numerous other financial sites on the Internet.

Before we begin with prepared remarks, we submit for the record the following statement. Statements made by the management team of Trinity Biotech during the course of this conference call that are not historical facts are considered to be forward-looking statements subject to risks and uncertainties. The Private Securities Litigation Reform Act of 1995 provides a Safe Harbor for such forward-looking statements. The words believe expect, anticipate, estimate, will, and other similar statements of expectation identify forward-looking statements. The forward-looking statements contained herein are subject to certain risks, uncertainties, and important factors that could cause results to differ materially from those reflected in the forward-looking statements. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including but not limited to, the results of research and development efforts, and the effect of regulation by the United States Food and Drug Administration and other agencies; the impact of competitive products, product development, commercialization and technological difficulties; and other risks detailed in the Company's periodic reports filed with the Securities and Exchange Commission.

Participants on this call are cautioned not to place undue reliance on these forward-looking statement, which reflect management's analysis only as of the date hereof. The Company undertakes no obligation to publicly release the results of any revisions for these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. With that said, let me turn the call over to Mr. Ronan O'Caoimh, Chairman and Chief Executive Officer of Trinity Biotech. Ronan?

Thanks so much, Joe, and welcome, everybody, to our quarter one conference call. I'm joined by Kevin Tansley, our Chief Financial Officer by Rory Nealon, our Chief Operations Officer. Kevin will bring you through the results for the quarter, Rory will discuss our Phoenix acquisition and our Premier instrument, which received its CE mark yesterday, and then I will review our revenue performance for the quarter before opening the call to a question and answer session. So I'd like to hand you over to Kevin now please.

Thank you, Ronan. Today I will take you through the results for quarter one including a review of the income statements and the key balance sheet and cash flow movements for the quarter.

Starting with the income statement, revenues for the quarter are $18.7 million, which compares to $29 million in quarter one 2010 or $17.6 million if you exclude the Coagulation product line, which was divested in quarter two of last year.

Point of care revenues were $4.5 million, which represents an increase of 3.6% over the corresponding quarter last year. Clinical laboratory revenues, excluding Coagulation, also grew in the same period, increasing from $13.3 million to $14.1 million, which is an increase of approximately 6.5%. Ronan will take you through the revenue performance in more detail later on in this call.

Moving on to our gross margin, this has increased to 51.2% which compares very favorably with the 46.6% in quarter one 2010. The improvement of 4.6% is largely due to the impact of the divestiture of Coagulation, as this was the product line with the lowest gross margin. A better comparison would be to look at quarter four 2010's gross margin. And again, we're seeing an improvement in this case by almost 0.5%, which is mainly due to the sales mix this quarter, in particular the higher Point of Care revenues.

Moving on to our indirect expenses, our R&D expenses this quarter have fallen from $1.8 million to $0.7 million. And again this is mainly due to the Coagulation divestiture. Our selling, general and administrative expenses have also decreased at this time from $7.9 million to $5 million, representing a decrease of 36%, and again, the principal factor has been the Coagulation divestiture.

So as was the case for gross margin, I will compare this quarter's SG&A expenses with the most recent quarter, which is quarter four, as this is a more direct comparison.

In this case, we're seeing a decrease from $5.4 million in quarter four 2010 to $5 million this quarter, which is a reduction of 7%. This reduction is due to the timing of marketing expenditure and trade show costs and also reflects the higher legal costs which were incurred in quarter four 2010 associated with preparing for the share buyback.

Moving onto our net financing costs next, this quarter, we have net financing income of $638,000 and this compares to a net financing charge of $231,000 for the same period last year. It also represents a 30% increase in financing income from quarter four last year, and this is due to higher deposit interest rates and larger cash balances. The move from a financing charge to financing income reflects the interest income being earned on the Coagulation divestiture proceeds and on the cash being generated from operations.

Meanwhile, the repayment of all of our bank debt has reduced our interest expense significantly. Remaining interest expense relates to equipment lease financing, which was reducing as we repaid the outstanding balance and which will be eliminated entirely in mid-2012.

The tax charge for quarter one is $585,000. As anticipated on previous calls, our effective tax rate has now begun to increase due to the lower availability of tax losses forward. The effective tax rate this quarter is 13.5%, which compares to 8.4% for quarter one last year and to 10% for quarter four 2010. We can expect the rate going forward to be in the mid teens.

Our operating profit for the quarter was $3.7 million, which is broadly in line with the equivalent period last year. As I have also been making comparisons to quarter four so far, I will point out that operating profits are up by 3.4% this quarter versus quarter four. From an operating margin perspective, we are seeing a substantial improvement from 12.7% to 19.8% year on year, [results close] to achieving our target operating margin of 20%.

Profit after tax increased from $3.2 million in Q1 last year to $3.8 million this quarter, which is an increase of 18.8%, and this is reflected in our higher EPS for the quarter, which has moved from $0.15 to $0.17 per ADR.

Now let's talk about our balance sheet, where I will explain the significant movements since the end of December 2010. Property, plant and equipment increased by approximately $600,000 during the quarter. And of this increase, $200,000 is attributed to assets taken on as part of the acquisition of Phoenix and with the other additions amounting to approximately $700,000. These are partially offset by a depreciation charge of almost $300,000 for the quarter.

During the same period, our intangible assets increased by $3 million. Of this, $1.9 million relates to intangible assets and goodwill arising from the acquisition of Phoenix, and the remainder is attributable to additions of $1.5 million on development projects which has been partially offset by an amortization charge of almost $400,000. These additions relate to the work being carried out in finalizing our new Premier instrument that we announced CE marking for yesterday, and in developing our new Point of Care product range.

Moving on to inventory next, you will see that inventory has increased by approximately $1.1 million during the quarter. We can expect to see inventory fluctuating quarter on quarter, and if you recall, the previous quarter, we had a decrease of $1.2 million. Two factors which have also contributed to the increase this quarter were the impact of the Phoenix acquisition and the commencement of inventory buildup for Premier. In fact, I expect inventory levels to increase slightly over the next couple of quarters due to the ramp-up in production for Premier.

Trade and other receivables have fallen by $1.5 million to $24.1 million in the last three months. These receivables consist of two main elements. Firstly, there is the short-term portion of deferred consideration of $11.25 million, as payment was received on schedule in the last few days and will be reflected in the quarter two results. The second payment from Stago of $11.25 million, which is due to be received next April, is included in non-current assets.

The remainder of current receivables is largely made up of trade receivables, which have improved to 55 days compared to 58 days in the previous quarter.

Finally, in relation to working capital, our trade and other payables have increased by $1.2 million this quarter, and this increase is largely due to the $1.5 million which is repayable for the purchase of Phoenix. This $1.5 million includes $500,000 which has already been paid in quarter two, with remaining $1 million being spread evenly over quarters three and four of 2011 and quarter one of 2012.

I will now move on to discuss our cash flows for the quarter. Our cash balance has moved from $58 million to $59.8 million, an increase of $1.8 million. This consists of $5.8 million of cash generated from operations and net interest received of $238,000. This has been partially offset by capital expenditure of $2.1 million. This gives us free cash flows for the quarter of a close to $3.9 million, which represents an increase of more than 50% over quarter one 2010. Offsetting this is the $1 million payment in relation to the acquisition of Phoenix, and just under $1.1 million that was spent purchasing Trinity shares up to the end of March as part of the buyback program. As I mentioned, this gives us a cash balance of $59.8 million, thus continuing our trend of increasing cash balances. I will now hand back to Ronan.

Actually it's Rory here. I'm just going to talk very briefly to the Premier instrument and also give you a quick update on the Phoenix acquisition. Thanks, Kevin.

So in relation to our Premier instrument, previously known by its working name as the PDX, this instrument has targeted two specific markets, namely the hemoglobin A1c market and also the hemoglobin variant market. The hemoglobin A1c, we believe, is currently at least $275 million on a global basis and in fact recent research is suggesting it could be significantly bigger than this. This market has three significant players other than ourselves, namely Tosoh, Bio-Rad, and [Arkwright].

The second market are the hemoglobin variant market we believe is an excess of $50 million on a global basis and this is essentially dominated by Bio-Rad. Our Premier instrument will compete in both of these markets, albeit our focus for the time being is obviously on the A1c market.

Yesterday, you may have noticed that we announced that the instrument has been CE marked, which formally opens up the European market to us through our European distributor, Menarini. You will recall we announced on the 15 of February that Menarini has been appointed our European distributor, and that Menarini currently has 40% of the European A1c market.

Menarini, just to remind you, is a very, very substantial Italian-based company with turnover of approximately $4 billion and 12,000 employees.

So next steps for us are that the instrument will be formally launched and demonstrated at firstly the IFCC-WorldLab and EuroMedLab Conference in Berlin, from the 15 to 19 of May, so that's the week after next. And this is a significant global conference which is a wider audience than just that from a European perspective.

Immediately thereafter, in other words, the following week, the instrument will, again, be demonstrated at the ACB or the Association for Clinical Biochemistry Conference in the United Kingdom.

So now that we have the CE Mark, we can also move to start selling the instrument in jurisdictions outside of Europe which accept the CE Mark such as Turkey, for example, which is a significant market for us.

In parallel with all of this, we're moving to prepare the documentation for the FDA 510(k) submission and also other significant regulatory submissions, such as in China.

Before concluding in the Premier instruments, I'll just remind you why we think we really do have a winner here. Firstly, we have the best technology. We're the only ones offering what is called boronate affinity, which is patent-protected and which provides a better, more consistent patient result with less interference from potential hemoglobin variants.

Secondly, we are faster at one minute versus the next best at 90 seconds. And this might not sound like a lot to you, but it's a 33% improvement on what is currently being offered to the labs, which is a big cost implication for the labs.

Thirdly, we are more user-friendly in that we are using large touchscreen technology which is really, really user-friendly. You might recall, I've said this before regarding our Destiny Max instrument for our Coagulation business, which we have since divested, and it happened then and it's happening again now that this is one of the most talked about features of our instrument from potential customers.

Broadly, it's easier to service in that the instrument is modularly designed and as a result will significantly reduce the cost of maintenance for both the customer and for ourselves, Trinity, and for our European partner, in Menarini.

And lastly, I believe that we're cheaper to produce, which could have a big impact on what market share we get.

So in conclusion we are going after two markets well in excess of $300 million. And we believe we have the best product offering on the market and that this will provide significant growth impetus to Trinity in the coming years.

Just before concluding on the Premier, I should note also that we have recently recruited a new key executive to head up our hemoglobin A1c and variant sales and marketing efforts. His name is [Fernando de Via] and he's previously worked for 15 years with one of our key competitors, namely Bio-Rad.

Just to move on briefly to the Phoenix acquisition, before concluding my piece, I will just update you on the status of that acquisition.

This relatively small, $2.5 million acquisition was announced on the 2 of February and involved the purchase of a Toronto-based business specializing in testing for syphilis. The company, you might recall, sells the only total antibody FDA approved test in the US market. The plan, as announced at that time, was to move the business from its current location in Toronto to our nearby manufacturing facilities in Jamestown, which is in upstate New York, about two-hours drive away.

This transfer process is very much on track, we'll be finished shortly and we'll definitely be finished by the time of our next conference call.

Further, the underlying business has continued to perform well, and we are very, very excited about some of the products which are currently in early stages of development and which we will talk to you about on future conference calls. Ronan.

Thanks, Rory. We are very pleased with the performance of the company this quarter for two principal reasons.

Firstly, despite the fact that quarter one has always been our lowest revenue quarter due to virtually no line sales in quarter one, despite this, our earnings per share has grown 2.5% from $0.171 in quarter four to $0.0175 this quarter.

And secondly, and most importantly, this quarter, we have achieved organic growth of -- we've achieved growth of 5.8% when compared with last year.

Our Point of Care revenue for the quarter was $4.5 million compared with the $4.3 million in the first quarter last year, an increase of 3.6%. African HIV revenues were flat when compared with last year, but up 20% on quarter four.

Our business development pipeline is very encouraging with significant growth anticipated in Uganda and Zambia.

US HIV revenues performed strongly, and were up over 20% compared with both last year and last quarter. This is a very good performance when measured against the performance of our competitors and when you consider the cutbacks in state HIV spending.

Moving on to our clinical laboratory business, which comprises infectious disease, Fitzgerald and diabetes, it generated sales of $14.1 million, compared with $13.3 million last year, which is an increase of 6.5%. However, when the effect of the acquisition of Phoenix and the move to a distribution model in France and Germany following the divestiture of Coag and a neutral dollar -- when these items are taken into account, our underlying organic growth for this quarter compared with last year is 7%.

Moving on to Fitzgerald, for the third time in three quarters, Fitzgerald's sales are down over $600,000 compared with last year or compared to the corresponding quarter last year. And this arises entirely due to a collapse in flu antibody sales as a result of overstocking last year due to the H1N1 swine flu pandemic, and also due to low incidence of flu this past winter. Excluding this issue, Fitzgerald is showing reasonable growth.

As mentioned before, we have big plans for the Fitzgerald business with a new website and a significant increase in our product range, which will be targeted at the research market as opposed to the diagnostics market, where we are currently focused. The new website will be launched in quarter three and we will talk more about our detailed plans on the next conference call.

Both infectious disease and diabetes have had an excellent quarter. Infectious disease has grown over 10% when compared with the corresponding quarter last year. The US has performed strongly with good instrument placements, and the syphilis product from Phoenix has been very successful.

Obviously Lyme Western Blot sales were low, but this is in line with normal seasonality.

China continues to perform strongly, and additional resources have been allocated to registration in both China and Brazil.

Our diabetes business performed well during the quarter with growth of 8%, driven by sales in the US and China. The major events during the quarter have been the signing of the diabetes deal with Menarini and the CE marking of the new diabetes instrument yesterday. Rory has dealt with this in detail.

Up to now, Trinity's presence in diabetes has been principally in variant testing, with a minor presence in mainline A1c testing. With the launch of this instrument and with our unique boronate affinity HP A1c test that Roy has talked about, we believe that we will quickly become a significant force in this market. We have signed Menarini, the market leader in Europe.

We will sell with our own sales force in the United States as well as with the distribution partner that we will soon announce, and we will file with the Chinese and Brazilian registration authorities in the next few weeks.

Moving toward the -- our new Point of Care R&D team in San Diego are making excellent progress with the eight new Point of Care tests that they're developing. And we are confident of making our first FDA submissions before Christmas.

Moving on to the share buyback, we commenced the share buyback on March the 9 once we had exited the blackout period following our quarter four earnings release. During the period of 31 of March, we purchased a total of 112,000 ADRs at a total cost of $1.07 million. This represents an average price per ADR of $9.49.

In carrying out these purchases, we adhered to the relevant SEC rules, including the daily trading limit of 25% of the average daily volume for the previous 20 trading days. In our case, this limit was a little over 10,000 ADRs per day. And for the 13 days we were active in the market, we purchased close to or at that level.

As we've been in the blackout period since the quarter end, we have not been active in the market this quarter yet. Now that the blackout period has ended, we will recommence buying in the market tomorrow morning.

Moving on to our dividend, as we previously announced given the robust, reliable and growing nature of the company earnings, we feel that it is now an appropriate time to commence paying a dividend. This will require approval at our AGM, which will be held on Friday, 20 May. Subject to approval being granted, we will pay a dividend of $0.10 per ADR.

We have set a record date of the 9 of June, and shareholders can expect to receive payment no more than 10 business days after that date.

Thank you very much. If I could now open the call to a question-and-answer session.

(Operator Instructions). Matt Dolan, ROTH Capital Partners.

Hey guys; how are you? First question on Menarini, Rory, maybe walk us through your thoughts on what the revenue and margin contributions for them. I understand their market share in HB A1c, but what are they going to do specifically with your product? Will it be a full conversion internally there? Or how should we think about the magnitude of that deal?

I think we should think about margins, and I have to be careful what I say here as you can imagine understand, Matt, for competitive reasons. But you can think about margins in the ballpark of the group margins, okay? That's the first thing to say.

In terms of revenues on the last call, I mean, Ronan talked -- you might recall to the fact that there are purchase minima in the contract but he wasn't in a position to disclose them. Set those purchase minima are on an annual basis. And obviously we would expect them to meet those and in fact to exceed them over time.

In terms of how they will roll it out, this is obviously a matter of ongoing discussion with them at the moment, but likely on a market-by-market basis. There are a number of markets that are particularly in keeping to them right at the moment, such as in northern Europe. And in time, it will progress into other markets around Europe. To be honest, Matt, I'm not really in a position to say a lot more than that obviously for confidentiality reasons.

Sure. Fair enough. Okay. And then, on clinical lab, I understand the Fitzgerald situation, but it's been trending really on a continuing side in a range over the last seven or eight quarters. So you had some underlying growth here in Q1. Can you give us a little better picture on how that goes? Is this kind of mid-to high single digits -- something that's sustainable here?

Ronan here. Matt, at the moment we're getting about 10% organic growth if you exclude the fact that we are down every quarter for the last three quarters between either -- somewhere between $600,000 and $700,000.

So fundamentally, there was about $3 million of this company's sales were influenza monoclonals, and that business has just collapsed because everybody is way over stocked after the collapse of the H1N1 issue, and meanwhile, that's been exacerbated by a very, very weak flu season this year.

We're hoping -- it's clear it's not a permanent situation, but for the moment, our sales are virtually zero of flu antibodies.

I would imagine that sometime in the next two or three quarters, we should start getting back to where we were. You would expect purchasing to start now for next year, but that's obviously starting at a very low level. It may be later in the year before we see any real realistic return.

Bear in mind that all of our competitors -- all of the companies that participate in rapid flu testing are -- basically have very significant inventories on hand and probably still have.

I think the big growth opportunity as well, Matt -- and we will talk to it more on the next conference call as Ronan touched on -- is in the whole research area. Right now, that 80% to 90% of Fitzgerald's sales are into the diagnostics market, whereas if you look at the peers out there, you will find that 90% being into the research market. It's not an area we have touched on today. They're fundamentally the same product sold by similar people, but the methodology by which you sell is very different. In other words, the research market tends to use Google if I can be crude about it.

So right now, what we are doing -- and like I said, we will talk to you about it more on the next call -- is you will see a brand-new website, search engine-optimized with significantly more data per product on it, and we'll probably double the amount of products on that database; and also very Web-enabled in terms of front end to back end. So that all will get launched in quarter three. And we're quite optimistic that's going to significantly drive growth in that business in the research market over the coming years, starting into Q3, Q4 and beyond.

Okay, great.

Matt, Ronan here again. Just to make another point, Fitzgerald has not lost any major antibody supply business in the influenza market, right? So basically there are many companies who have significant market shares in influenza both in the rapid and in laboratory who use Fitzgerald antibodies and haven't been buying basically simply because they are out the door with inventory. Clearly that position won't continue forever.

Obviously, some of the product, if it doesn't sell, is going to go out of date, and people will continue to have flu in the future, so the business will return. It's only a matter of when.

Okay. Shifting gears, maybe you can just give me when you are expecting to announce the US distribution partner; I think you said soon.

Yes; we intend filing our 510(k) for Premier in the next two to three weeks. And we -- the deal is virtually done but I think we would probably tie in the announcement of the deal into the FDA process, you know?

The filing or the clearance?

We'll decide on that as we go along. I mean, the difference between the two is about four months.

Okay. If I could sneak two more in. On the Point of Care side, it sounds like things are going quite well there. Based on your commentary, it seems like Africa should increase from what you saw here in Q1, and the US continues to plug along. So should we expect higher revenue levels on a quarterly basis going forward?

I think so. I think we have a very good quarter in the United States. We were surprised by it against the background of some of our competitors struggling, so I'm not sure if we can surpass that level. I think if we could maintain that level, we would be reasonably pleased.

In terms of Africa, we have some interesting developments and I have indicated that we are very positive in certain countries in terms of maybe changes in the algorithm on that. So our pipeline is looking very promising there. So we're very (multiple speakers)

Okay. And Kevin, the expense structure continues to come down. Can you recalibrate us on kind of front looking from Q1 levels forward, what we should expect on the expense line?

Part of that, I believe you're talking about above the line and you can see the margin is now in the low 50%, which is 51.2%, and I think that's kind of a level I had sort of flagged previously, and I see it continuing in and around that level.

In terms of below the line, I can see maybe a slight increase in the R&D side, and possibly a slight increase on the SG&A side quarter to quarter, depending on timing of certain expenditures. You might see additional costs midyear and then maybe a dip again towards the end of the year as we have a lot of our trade shows and other marketing spend happening towards the middle of the year.

So, I think through this quarter, it was particularly low and it was a very good quarter from an expenditure point of view. So maybe some slight tick-ups in other quarters, but nothing significant.

All right. Thanks for all the time.

Joe Munda, Sidoti.

Good morning, guys. Just a follow-up, can you provide a little bit more color on the Africa distribution? I know that you guys had experienced a situation down there with a distributor. Has that been cleared up?

Joe, Ronan here. No, it's -- it's still a work in process.

Okay. Do you see that affecting -- I mean how is that going to affect you in the coming quarters?

Well, I think that our expectation -- I mean I think we -- we haven't budgeted anything for it. So any positive development will be an upside, is the way we have approached it.

Okay.

We're regarding this business as gone, barring some positive development, which we hope for but which we haven't (multiple speakers)

Okay. In regards to the Premier instrument, can you give us a little bit -- I might have hopped on the call a little late, but the market size opportunity in the US?

Sure, Joe. Depending -- you hear numbers in around $275 million, but as we get closer and closer -- those are [physical] over market now, okay? As we get closer and closer to it, we think it's well into the $300 millions on a global basis. The European market is north of $100 million.

The US market we'd (technical difficulty) be in and around the same. The Japanese market will be quite significant as well, but it's all little idiosyncrasies because of the lack of hemoglobin variants in that market. But it's a different market, but it's also part of that $275 million, and then you have got the rest of the world. So when you see $200 million plus between Europe and the US, you can understand what I'm saying about the $275 million being on the low side. To answer your question, of the order of $100 million plus in the US market.

Okay. And just one final question regarding the Phoenix acquisition. When is the -- when is that move from Toronto to Jamestown expected to occur?

It's pretty much already happened. It's been done on a stage basis with different stages in the process being moved at different times, most of which have already happened, but the last couple of stages are due to happen in the coming weeks hopefully.

Are you expecting any charges from the closure of the other facility in Toronto?

No.

Okay. And as far as revenues are concerned, from Phoenix, is there any expectations there for 2011 that you can shed some light on?

The press release we issued in February had approximately $1.25 million of revenues anticipated. If anything were (technical difficulty) a slight uptick on that, albeit -- please bear in mind we're only in the business about two or three months at this stage, so I don't want to be --

Well, yes, just a little bit of that, at $1.25 million. But actually this quarter we got 29% growth on the syphilis line. It's early days. But we're very positive on it.

And do you see that growth rate increasing as the year moves forward or is that a base line number that we could work off of?

I'm talking 29% quarter four versus quarter one.

Oh, okay.

It would be difficult to kind of keep that going. We're very positive on it.

I think it's the kind of business that we can travel in a three-year period, that kind of thing, you know?

Okay.

But it's not just that. What this business does, it serves to reinvigorate the rest of the business because it can pull along other products with it.

Got you.

A customer might decide to take our instrument because he likes this particular product and that, in turn, would sell 20 other reagents; do you know?

Okay. All right, guys. Thanks for answering my questions.

(Operator Instructions). Wyatt Carr, Crowell, Weedon.

Thank you. Ronan, great quarter. Just a quick question on the cash. You received the $11.25 million after the quarter was -- ended. Is the cash balance up around $71 million at this point?

Yes, absolutely. That's correct, yes. I think it came in the 1 and 2 of May.

Okay. And the balance of that is due to be paid April 2012?

That's right. Yes.

Okay. So your cash --

So therefore, our effective cash balance, I think as Kevin said, is $82 million at this moment in time, which I think translates into $3.85 a share.

Okay. And that's in spite of the buybacks and acquisitions and everything else?

Yes. I mean as Kevin said, we spent just over $2 million this year -- this quarter, sorry. $1 million on the Phoenix acquisition as of a total number of $2.5 million, and then we spent just over $1 million on the buyback.

Okay. And then on the cost to move for Phoenix, are all the costs in now at this point? Or are there some small additional costs that will be going into the next quarter?

They are effectively in there, and anything that's left is genuinely very, very negligible. What's involved is simply moving a couple of small pieces of equipment 2.5 hours down the road and it's all been done by our own people, so we're talking really, really negligible costs, okay?

Okay. And then lastly, on the Point of Care, you indicated that some of the -- some large sales in the fourth quarter were pushed out. Did all of that come into the first quarter?

Well, it did, yes.

Okay. Great. Thank you very much.

(Operator Instructions). Aiden O'Donnell, Davy Stockbrokers.

Great quarter. I just have a couple of questions for you if you don't mind. On the buyback, $1 million this quarter. What sort of level can we expect? What level are you comfortable and how do you think about it in terms of a percentage of cash flow or just maybe just an update on that of what we should expect as a run rate for the rest of the year.

And just secondly then, on the PDX, when do you think you will see some revenue coming through and presumably it build as the quarter goes on or as the year goes on, but can we expect something in there from Q3?

And finally, just on acquisitions, is there any other little bolt-on deals that you think that you can find out there, and how should we think about that?

Aiden, Ronan here. Dealing from -- backwards, if that's the first -- your last question; we're not looking for bolt-ons at all. We're not looking for acquisitions. And so the Phoenix deal was unusual in a sense that it just made compelling sense and it was a very small bolt-on, but we're not looking for any other (technical difficulty) and don't have any in mind.

With respect to sales of Premier, we believe that they will start very, very soon. The Menarini are launching it, as Rory indicated to show later this month, and so we would expect to have sales -- we probably should have some sales in quarter two before the 30 of June.

I couldn't absolutely be certain of that because there's some labeling and whatever else. But we certainly will have sales and hopefully decent sales in quarter three. We may have some very modest sales in quarter two, I don't know. I hope so, but I'm not certain.

Sure.

And your last question was about -- about your first question was about the buyback. Yes, as I said, we go back into the market tomorrow morning and continue our buyback. You know our volumes are around 40,000 a day, so we can only buy [10,000]. We will continue to do so. Obviously the board is overseeing this whole thing and we go back to them on a regular basis, and our behavior would obviously depend on the price and market conditions, etc. etc. But, for the foreseeable future, we would anticipate that we will continue on that basis, buying to the maximum of -- that's allowed.

Perfect. Thanks very much, guys.

We seem to have -- operator, do we have no more questions?

No sir, we have no more questions at this time.

All right. In that case then, I think we will close. Thank you, everybody, for your interest, your attention and your support. We look forward to talking to you next quarter. Bye bye.

The conference has now concluded. Thank you for attending today's event. You may now disconnect.