BMP Sunstone Corporation (NSDQ: BJGP) announced that its 2008 revenues climbed 350% higher to $114.9 million. BMP attributed the spectacular rise to a $65.7 million boost from its $125 million Sunstone acquisition, which closed in February of 2008. Sunstone transformed BMP from a drug distribution company into a combined pharmaceutical/distribution enterprise with higher margins.
Distribution revenues rose 57% to $43.7 million, helped by the acquisition of Rongheng in July 2008. Licensed products revenue was up 74% at $5.4 million.
Profitability remains a problem for BMP Sunstone. The company reported non-GAAP net income was $7.2 million, a big improvement from a net loss of $9.0 million in 2007. Unfortunately, BMP Sunstone reported a GAAP net loss of $3.4 million in 2008, which was still better than its $11.6 million deficit in 2007. On the positive side of things, the company had positive GAAP net income of $1.1 million in Q4. That was a far better performance than its $6.6 million net loss in 2007’s Q4.
BMP Sunstone reissued guidance of a 35% increase in revenues in 2009, equivalent to a range between $150 million to $160 million. EBITDA should be between $16 million and $18 million. However, the company lowered net income guidance because of a newly issued convertible offering. It forecast GAAP net income in a $2 million to $4 million range and non-GAAP net income of between $9 million and $11 million.
The company said it ended 2008 with $15.7 million of cash plus another $15.8 million of notes receivable. The notes, which have maturities of six months or less, are settlements from customers of accounts receivable and are guaranteed by established banks.
BMP Sunstone says small acquisitions are possible in 2009, but it will concentrate on integrating its present operations.
BMP Sunstone has a market capitalization of $131 million. It rose 20 cents to $3.25 in Wednesday’s session, which followed its earnings announcement. In the last 12 months, BMP has traded between $2.25 and $8.74.