Bmp Sunstone (NASDAQ:BJGP)

Third quarter ended September 30, 2010.

• Revenue increased 33.4% to $44.9 million from $33.6 million in the prior year period.

• Gross profit rose to $16.3 million from $15.7 millionin the third quarter of 2009. Gross margin was 36.3%, compared to 46.6% in the prior year period.

• Operating income was $69,000, compared to $1.0 million in the prior year period.

• Adjusted EBITDA was $961,000 compared to $2.6 millionin the third quarter of 2009.

• Non-GAAP net income was $299,000, or $0.01 per diluted share, compared to $1.3 million, or $0.03 per diluted share, in the third quarter of 2009.

Full Year 2010 Financial Guidance

• Revenue to reach between $160 million and $170 million in fiscal 2010.  
• Adjusted EBITDA to reach between $16 million and $17 million.
• Non-GAAP net income to reach between $9 million and $10 million.

• Revenue increased to $40.9 million from $32.5 million in the prior yea period, an increase of 25.8%.
• Gross profit rose to $18.7 million from $14.4 million in the second quarter of 2009, coupled with gross margin expansion to 45.7% from 44.3% in the prior year period.
• Operating income grew substantially to $2.3 million from $93,000 in the prior year period.
• Adjusted EBITDA was $4.3 million compared to $1.7 million in the prior year period.
• Non-GAAP net income was $2.2 million, or $0.05 per diluted hare, compared to $300,000, or $0.01 per diluted share, in the second quarter of 2009.

David Gao, Chief Executive Officer of BMP Sunstone, stated, "We are delighted to see the initial benefits of the organizational changes we made earlier in the year. With Mr. Tong at the helm, our manufacturing business is now operating with increased efficiency, particularly within our sales and marketing department, where the reorganization helped drive increased sales of Sunstone's products. We also are starting to see improved margin performance in our distribution business as we continued our push to focus on higher margin products. The managerial and operational improvements we made in the first half of the year are proving to be worthwhile, and we are optimistic about our ability to continue strong growth of revenue and profit for our shareholders in the back part of the year."

Full Year 2010 Financial Guidance

The Company continues to expect revenue to reach between $160 million and $170 million in fiscal 2010. Additionally, during fiscal 2010, the Company continues to expect adjusted EBITDA to reach between $16 million and $17 million and non-GAAP net income to reach between $9 million and $10 million.

Non-GAAP net income was $3.6 million, or $0.07 per diluted share, compared to $4.1 million, or $0.10 per diluted share, in the fourth quarter of 2008. On a GAAP basis, the Company reported net income of $2.0 million, or $0.04 per diluted share, compared to $1.4 million, or $0.03 per diluted share, in the fourth quarter of 2008. During the fourth quarter of 2008, the Company had a $1.4 million tax benefit reflecting the reduction in tax rate from 25% to 15% for 2008, 2009 and 2010, as a result of receiving hi-tech tax status.

Non-GAAP net income and earnings per share exclude stock based compensation expense, amortization related to acquisitions, amortization of debt discount and issuance cost, loss on early extinguishment of debt and gain on the embedded derivative value on convertible notes. Adjusted EBITDA is a non-GAAP measure which provides earnings before interest, taxes, depreciation and amortization and excludes loss on early extinguishment of debt and gain on the embedded derivative value on convertible notes.

• Financial Guidance In 2010, revenue is anticipated to grow from $146.9 million for 2009 to $160 million - $170 million.
  
• The Company expects adjusted EBITDA for the full year 2010 to reach $16 million - $17 million.
  
• The Company expects non-GAAP net income for the full year 2010 to reach $9 million - $10 million.

Gao continued, 'Sequentially and on a year over year basis, Sunstone generated lower revenue in the second quarter of 2009. We believe that the recent decline in purchases from distributors will reverse as soon as the pending Chinese healthcare policies are finalized and disclosed. Our 2009 financial guidance reflects sales and marketing expansion in China resulting from continued performance at all of our business units, especially at Sunstone, and reflects operational synergies resulting from acquisitions we completed over the past eighteen months. In 2009, we expect all of our business units to be profitable, which will mark a significant milestone in the Company's development.'

BMP Sunstone is reiterating its previously stated guidance.

Full Year Fiscal 2009 Guidance Ending December

Source: PR Newswire (August 10, 2009)

Guidance Report

BMP Sunstone is reiterating its revenue and non-GAAP guidance for 2009. 'China's healthcare opportunity is large and growing. We believe our combination of branded OTC products at Sunstone, in-licensed RX products at BMP China, and our established distribution networks -- which enable us to control sales channels in key markets -- position us very competitively. We remain focused on delivering enhanced profitability over the long term, and we remain enthusiastic about the market we address.

'Our 2009 financial guidance reflects sales and marketing expansion in China resulting from continued performance at all of our business units, especially at Sunstone, and reflects operational synergies resulting from acquisitions we completed over the past 18 months. In 2009, we expect all of our business units to be profitable, which will mark a significant milestone in the Company's development.'

Full Year Fiscal 2009 Guidance Ending December

Source: PR Newswire (May 18, 2009)

Guidance Report:

'Our 2009 financial guidance reflects sales and marketing expansion in China resulting from continued performance at all of our business units, especially at Sunstone, and reflects operational synergies resulting from acquisitions the Company completed in 2008. In 2009, we expect all of our business units to be profitable and to outperform the market growth. Importantly, we expect our in-license business at Beijing Medpharm will start contributing to the Company's bottom line in 2009, which will mark a significant milestone in the Company's development.'

Full Year Fiscal 2009 Guidance Ending December

Source: PR Newswire (March 17, 2009)

Guidance Report: (Non-China)

Full Year Fiscal 2008 Guidance

"David Gao, Chief Executive Officer of BMP Sunstone, stated 'Today's announcement reflects improved profitability across the Company, as well as continued demand for our products and services as we close the year and enter 2009. We remain optimistic about the growth in China's healthcare sector and we intend to enhance our capabilities and realize additional opportunities in the future."

GeoTeam® Comment:

The company did not provide EPS guidance as it has in the past. This could imply that there may be dilutive events in the near future.

Source: PR Newswire (December 18, 2008)