I-Flow Corporation Reports Three-Fold Increase in
Earnings for Second Quarter of 1996
IRVINE, Calif., Aug. 1 /PRNewswire/ -- I-FLOW Corporation (Nasdaq: IFLO) today
announced results for its second quarter ended June 30, 1996.
For the quarter, net income, benefiting from $1.0 million in product licensing revenues, increased
more than three-fold to $551,000, or $.05 per share, from net income of $176,000, or $.02 per
share, in the second quarter of 1995. Per share results for the second quarter of 1996 reflect a
significant increase in the weighted average common and common equivalent shares outstanding
from the year-ago period resulting from the conversion of outstanding warrants. Revenues for the
quarter of $2.4 million were approximately equal to those achieved in the second quarter of
1995.
For the first six months of 1996, net income more than tripled to $1.1 million from $237,000 in
the same period a year ago.
Commenting on the Company's results, Donald M. Earhart, president and chief executive officer
of I-FLOW said, "Financially, our results were right on target, and we are maintaining our
strategic and operational momentum in the third quarter. During the period, we strengthened our
presence in Europe through a new, greatly expanded distribution agreement with Fresenius A.G.
In July, we acquired Block Medical, the market leader for disposable infusion pumps. As a result
of this key strategic acquisition, we virtually doubled sales, further improved our distribution in
both the United States, and Europe and lowered our manufacturing costs with a plant in Mexico.
"Importantly," Mr. Earhart continued, "the $17 million purchase price was paid with $11 million
of our own cash, $4 million in debt and only 430,000 shares of I-FLOW stock issued to the
seller. As an allocation of the purchase price, we plan to recognize a non-cash, non- recurring
write-off of approximately $5 million for in-process research and development costs in the third
quarter. We will also incur approximately $600,000 in additional expenses during the third
quarter associated with the integration of Block Medical operations. While these accounting
charges will result in a loss for the third quarter, operations are expected to remain strong and
consistent with external expectations. There remains approximately $7.5 million of goodwill
associated with the acquisition of this business."
I-FLOW Corporation designs, develops, and markets technically advanced ambulatory infusion
systems that administer antibiotics, analgesics, chemotherapeutic agents, hormones, nutrients,
hydration therapies and other medical treatments to patients. The Company's products are
designed for portability, convenience, reliability, economy, and technical sophistication so that
state-of-the-art health care can be delivered at both alternate care sites and in the hospital. *T
Selected Financial Data
Condensed Income Statement
(in 000s, except per share data)
Three Months Ended June 30, Six Months Ended June 30,
1996 1995 1996 1995
Revenue $ 2,409 $ 2,433 $ 4,513 $ 4,537
Costs &
expenses 1,858 2,257 3,419 4,300
Net income 551 176 1,094 237
Net income
per share $ .05 $ .02 $ .10 $ .03
Weighted avg. common and
common equivalent shares
outstanding 12,895,126 8,901,922 12,809,900 8,901,878
Balance Sheet Data
June 30, December 31,
1996 1995
Working capital $ 11,816 $ 6,958
Total assets 14,253 9,107
Long-term debt -- --
Shareholders' equity 12,871 7,728 *T |
