QUEBEC, March 26 /CNW Telbec/ - Victhom Human Bionics Inc. "Victhom"
(TSX: VHB) today announced results for the fourth quarter and fiscal year
ended on December 31, 2006. Mr. Benoit Huet, President and CEO of Victhom
said, "During 2006, Victhom reached very important milestones with the
worldwide commercial launch of the Power Knee by our partner Ossur and the
authorization by Health Canada of the clinical trial for our first
neuromodulation product, the Neurostep. We are satisfied with the progress
achieved in both our Biotronix and Neurobionix business units resulting from a
better focus of our R&D activities.
Annual 2006 and Fourth Quarter Results
For the year ended on December 31, 2006, the Company recorded revenues of
$3.2 million compared with $4.2 million in 2005. For the fourth quarter, the
Company recorded revenues of $1.2 million compared with $1.5 million in 2005.
The revenue decrease compared to last year is attributable to payments
received in 2005 on a non-recurring collaborative work contract with a medical
device company. This factor was partially offset by the growth, compared to
last year, in non-refundable advance royalty payments from our partner in the
Orthotics and Prosthetics market.
Research and Development ("R&D") expenses, before tax credits and grants,
amounted to $8.4 million in 2006 compared with $6.2 million in 2005, an
increase of 35%. For the fourth quarter 2006, the R&D expenses, before tax
credits and grants, amounted to $2.2 million compared with $1.6 million in
2005, an increase of 38%. The increase in R&D expenses is the result of higher
development costs directly linked to the Company's product rollout strategy in
the neuromodulation market. Also, in 2005, a portion of the R&D expenses was
allocated to the cost of revenues to account for the work performed on a
collaborative work contract with a medical device company.
General and administrative ("G&A") expenses, net of non-cash stock based
compensation charge of $0.4 million, for the year ended on December 31, 2006
amounted to $3.0 million compared with $3.0 million for the same period in
2005. For the fourth quarter 2006, the G&A expenses, net of non-cash stock
based compensation charge, amounted to $0.7 million compared with $0.8 million
for the same period in 2005, a decrease of 14% mainly due to lower
Consolidated net loss for the year ended on December 31, 2006, amounted
to $10.1 million compared to $8.2 million for the same period in 2005, an
increase of 24%. Consolidated net loss, net of non-cash charges of
$3.4 million for the year ended on December 31, 2006, amounted to $6.7 million
compared to a net loss, net of non-cash charges of $2.4 million for the same
period in 2005, which amounted to $5.8 million, an increase of 16%.
Consolidated net loss, net of non-cash charges of $0.7 million, for the
quarter ended on December 31, 2006, amounted to $1.9 million compared to a net
loss, net of non-cash charges of $0.2 million for the fourth quarter in 2005,
which amounted to $1.4 million, an increase of 33%. The increase in net loss,
net of non-cash charges, is mainly the result of higher development costs
directly linked to the Company's product rollout strategy in the
On December 31, 2006, the Company had cash and cash equivalents position
of $6.5 million. The Company believes that with its current and planned
financial resources, including the gross proceeds of $12.3M from the financing
announced on March 16, 2007, it will have sufficient liquidity to support its
cash flow requirements for at least the next 12 months.
On December 31, 2006, the number of common shares outstanding totaled
52,592,440 while 4,575,729 options were granted under the stock option plan
and 7,613,511 share purchase warrants are in circulation pursuant to past unit
offerings. The outstanding options and share purchase warrants are exercisable
respectively at a weighted average price of $0.98 and $1.58 per share.
Victhom researches, develops and delivers bionic devices that treat a
variety of physiological dysfunctions. Victhom has two business units:
Biotronix and Neurobionix.
Victhom manages a portfolio of 37 granted and 82 pending patents filed in
various countries and 13 registered trademarks worldwide. Victhom has
established an ongoing process to ensure the protection of its intellectual
property and to pursue filings for any discovery or improvements to its
Some of the statements made herein may constitute forward-looking
statements. These statements relate to future events or our future financial
performance and involve known and unknown risks, uncertainties and other
factors that may cause Victhom's actual results, performance or achievements
to be materially different from those expressed or implied by any of Victhom's
statements. Actual events or results may differ materially. We disclaim any
intention, and assume no obligation, to update these forward-looking
For further information:
For further information: Victhom Human Bionics Inc.: Benoit Huet,
President and CEO, (418) 872-5665 ext. 103, Fax: (418) 872-6926,
email@example.com, www.victhom.com; Media Relations: Frédéric Tremblay,
HKDP, Communications and Public Affairs, (514) 395-0375 ext. 234,
firstname.lastname@example.org; Source: Victhom Human Bionics Inc.