Thanks very much, Nick. Good morning, everybody. I'm joined today as well by Ronan O'Caoimh, our Chief Executive Officer; and also, John Gillard, our new CFO, as you would have seen from the release.
Before we begin with our prepared remarks, we submit for the record the following statements. 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 those 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; the effect of regulation by the U.S. 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.
Forward-looking statements reflect management's view only as of today. The company undertakes no obligation to publicly release the results of any revision to these forward-looking statements.
In addition, there is uncertainty about the spread of the COVID-19 virus and the impact it will have on the company's operations, the demand for it's products, global supply chains and economic activity in general.
Moving on then, today I'll be taking you through the financial results for quarter three 2020. Getting with our revenues; this quarter we saw substantial increase in revenues from $24.6 million to $32 million; this represents an increase of over 30% compared with the equivalent quarter last year. And Ronan will take you through the makeup of this later in the call. Obviously, an increase in revenues of this level will have significant impact on the income statement.
Firstly, you'll notice that our gross margin has increased from 41% to 52.4%, and by far the biggest factor driving this was increase in revenues that I've just mentioned.
As well as the underlying margin inherent in these sales, the overall gross margin has also benefited from the spreading of the company's fixed costs over a wider base. Other factors have played this quarter with the impact of fewer instruments sales and a lower depreciation charge, partly offset by adverse FX movements, that both, individually and combined, these are much smaller than the revenue effect.
Moving on to our indirect costs; our R&D expenses for the quarter grew very slightly from over $1.2 million to just under $1.3 million.
However more significantly, our SG&A expenses fell from $7.3 million to $6.3 million. In this regard, we're seeing the benefit of cost cutting measures that were implemented in quarter two in response to the onset of the pandemic. In response to the expected severe decline in revenues at the time, we implemented a series of measures aimed at significantly reducing or eliminating all discretionary expenditure; this includes lower T&E and sales marketing costs; for example, tradeshow costs. Though it is fair to say that some of these costs would have reduced naturally, anyway, given the pandemic [indiscernible] restrictions that have been put in place. Meanwhile, our share option expense for the quarter dropped from $252,000 to $156,000. Both on an overall basis, our total indirect costs fell from $8.8 million to $7.7 million for the quarter, a reduction of over 12%. Net result from this is that our operating profit for the quarter grew from nearly $1.3 million to close to $9.1 million; this increase was achieved through all of the key metrics moving in a positive direction, namely higher revenues and improved gross margin and lower indirect costs.
Moving on to our financing costs.
Our financial income for the quarter was lower than in the comparative periods due to lower levels of cash deposits and lower interest rates. Meanwhile, our financial expenses were broadly in line at $1.2 million quarter-on-quarter. This consisted of $1 million of interest due on our exchangeable notes, and approximately $200,000 relating to notional interest and pre-users into lease transactions which have become a feature of our income statement since the introduction of IFRS 16 last year. Further down the income statements, you will see an additional non-cash expense of $161,000 which represents the non-cash accretion interest arising on our notes. Tax charge for the quarter was $400,000, and this represents a nominal effective rate of 4.5% of operating profit. This is normal -- lower than normal due to our eligibility for R&D tax credits. On an overall basis, the profit after tax for the quarter was over $7.3 million compared to close to breakeven last year. This equates to an EPS of $0.35, or nearly $0.36 when non-cash financial charges are excluded. Meanwhile, fully diluted EPS for the quarter was just over $0.32 compared to $0.043 [ph] for quarter three last year. I'd like to remind you that the profit figures that I have mentioned so far do not include any element of forgiveness of the $4.5 million loans received under the Paycheck Protection Program.
While we expect that these loans will be forgiven, we are waiting for the validation process to be completed before reflecting this in the financial statements.
Finally, on the income statement; earnings before interest, tax, depreciation, amortization, and share option expense for quarter amounted to $10 million; and the constituent parts of this can be seen on the release. I will now move on and talk about the significant balance sheet movements since the end of June. Property, plants and equipment increased slightly from $9.3 million to $9.5 million; this is due to additions of $600,000 being offset by depreciation of $400,000. Same period, our intangible assets increased by $1.1 million; this was made up of additions of $1.4 million offset by amortization charges of $300,000.
Moving on to inventories; you'll see these have decreased by approximately $1.8 million to $29.6 million; this was due to lower level of COVID-related inventories.
As expected, trade and other receivables have increased significantly from $17 million in June to $21.7 million at the end of September; this is obviously due to the strong increase in sequential revenues, though the fact that the percentage growth in receivables significantly lags the increase in revenues from quarter two to three demonstrates that cash collection rates have remained strong. Meanwhile, our trade and other payables, including both current and non-current have remained broadly flat at approximately $39 million.
Moving on to our cash flows for the quarter, next. Cash generations from operations for the quarter was just over $7.2 million. Not surprisingly, this was impacted by working capital outflows, especially in relation to accounts receivable following on from the steep change in our revenues from quarter two to quarter three. Obviously, the biggest single factor in the increase in cash flows with the enhanced revenues where we are fortunate today, but we are also seeing the impact of the closure of our Carlsbad facility, which occurred at the end of June. Meanwhile, capital expenditure in the quarter was $1.9 million versus $3.8 million last year, those continuing the trend of lower capital expenditure in recent quarters. Other principal cash flow movements in the quarter with a repayment of $800,000 in relation to the capital element of leases, which under IFRS 16 are now treated as a financing item. This has resulted in an increase in cash balances of $4.3 million for the quarter, bringing the cash balances at the end of September to just under $20 million. I'll now hand over to Ron.