Victhom discloses second quarter 2007 financial results



    QUEBEC, Aug. 10 /CNW Telbec/ - Victhom Human Bionics Inc., (Victhom
(TSX: VHB)), today reported its 2007 second quarter financial results.
    Mr. Normand Rivard, Vice President and CFO, said, "the refocusing of our
R&D activities and G&A cost reduction announced in January of 2007 have
allowed the Company to show a reduction of its net loss for the six-month
period ended June 30, 2007, while also investing significant resources in the
important clinical trial on the Neurostep(TM), a fully implantable closed-loop
peripheral nerve-sensing and nerve-stimulating medical device."

    Second Quarter Results

    For the three-month period ended June 30, 2007, the Company recorded
revenues of $547,854 compared with $767,895 for the same period in 2006,
representing a decrease of $220,041 or 28.6%. Revenue for the six-month period
ended June 30, 2007, was $1,108,089 compared to $1,289,411 for the same period
in 2006, representing a decrease of $181,322 or 14.1%. The revenue decrease
compared to last year is attributable to the reduction in non-refundable
advance royalty payments from our partner in the orthotics and prosthetics
market.
    R&D expenses, before tax credits and grants, amounted to $2,118,042 for
the three-month period ended on June 30, 2007 compared with $2,101,227 for the
same period in 2006, representing an increase of $16,815 or 0.8%. For the
six-month period ended June 30, 2007, R&D expenses, before tax credits and
grants, amounted to $4,102,220 compared to $4,135,719 for the same period in
2006, representing a decrease of $33,499 or 0.8%. The decrease in R&D expenses
resulting from the refocusing of the Neurobionix division R&D activities
announced in January 2007, which resulted in a reduction in the number of
employees, was offset by the increase in expenses related to the clinical
trial of the Neurostep.
    G&A expenses, net of non-cash stock-based compensation charges of
$95,019, for the three-month period ended on June 30, 2007, amounted to
$680,009 compared with $823,029 for the same period in 2006, a decrease of
$143,020 or 17.4%. For the six-month period ended June 30, 2007, G&A expenses,
net of non-cash stock-based compensation charges of $125,385, amounted to
$1,283,985 compared with $1,630,957 for the same period in 2006, a decrease of
$346,972 or 21.3%. The decrease is mainly due to staff reduction in
administrative functions and lower professional fees.
    Consolidated net loss for the quarter ended June 30, 2007, amounted to
$2,647,037 compared with $2,509,837 for the same period in 2006, an increase
of $137,200 or 5.5%. The net loss, net of non-cash charges of $941,845, for
the three-month period ended June 30, 2007, amounted to $1,705,192 compared to
a net loss, net of non-cash charges of $806,173, for the same period in 2006,
which amounted to $1,703,664.
    Consolidated net loss for the six-month period ended June 30, 2007,
amounted to $4,901,345 compared with $5,267,404 for the same period in 2006, a
decrease of $366,059 or 6.9%. The net loss, net of non-cash charges of
$1,736,838, for the six-month period ended June 30, 2007, amounted to
$3,164,507 compared to a net loss, net of non-cash charges of $1,758,950, for
the same period in 2006, which amounted to $3,508,454, a decrease of $343,947
or 9.8%.
    The decrease in net loss, net of non-cash charges, is mainly the result
of lower G&A costs compared to last year.

    Financial Situation

    At June 30, 2007, the Company had a cash and cash equivalents position of
$15 million compared with $6.5 million as at December 31, 2006. The increase
was mainly due to the issuance of shares in the financing completed in March
for gross proceeds of $12.4 million. The Company believes that with its
current financial resources it will have sufficient liquidity to support its
cash flow requirements for at least the next 12 months.
    On June 30, 2007, the number of common shares outstanding totaled
90,566,728 while 3,940,361 options were granted under the stock option plan
and 25,964,942 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 exercise price of $0.86 and
$0.76 per share.

    About Victhom

    Victhom discovers, develops and manufactures bionic devices involved in
the treatment of a variety of physical and physiological dysfunctions.
Victhom's Neurobionix business unit focuses on the development and
commercialization of technologies and products involving implantable devices
that feature neurosensing and neurostimulation components, integrated with
artificial intelligence. Victhom's Biotronix business unit develops
biomechatronic products to support or replace peripheral limbs in what is
known as the orthotics and prosthetics market.

    FORWARD-LOOKING STATEMENTS

    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
statements.




For further information:

For further information: Mr. Normand Rivard, Vice President & CFO,
Victhom Human Bionics, (418) 872-5665, ext. 106, Fax: (418) 872-6926,
normand.rivard@victhom.com; www.victhom.com; Source: Victhom Human Bionics
Inc.

Organization Profile

Victhom Human Bionics Inc.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890