UPDATE 2-Biocompatibles FY revenue up 94 pct

* Revenue 17.7 mln stg vs 2007 sales of 9.1 mln

* Net funds at year-end 33.6 mln stg vs 34.3 mln

* Operating loss 3.2 mln stg, vs loss of 6.2 mln

* Shares rise by as much as 14 percent

* CEO sees profitability by 2012 (Adds CEO comments, share details)

LONDON, March 5 (Reuters) - Drug eluting bead specialist Biocompatibles (BII.L) said on Thursday its 2008 revenue rose 94 percent to 17.7 million pounds ($25.03 million), with sales of its flagship bead product up 91 percent.

The results sent its shares up 14 percent to 107 pence per share in early trading before falling back to 104 pence by 1445 GMT, still up nearly 11 percent

The company closed the year with net funds of 33.6 million pounds, compared with its guidance of 28 million, while its operating loss narrowed to 3.2 million pounds from 6.2 million in 2007. Sales of its oncology products rose 165 percent.

The company also said it would propose a maiden dividend payment of 5 pence in May, based on royalty income.

Chief Executive Crispin Simon told Reuters in an interview that he expected the company to be profitable by 2012.

"We would expect it to be not later than 2012 ... It'll be at the point where we feel we have enough data to be able to say right now we need to concentrate on making a profit," he said. (Reporting by Ben Deighton, editing by Will Waterman)