I-Flow Corporation Revenue Rises 20% to a New First
Quarter Record
LAKE FOREST, Calif.--(BUSINESS WIRE)--April 18, 2000--I-Flow Corporation
(Nasdaq:IFLO - news) announced today that revenue for the first quarter ended March 31,
2000 rose 20% to a first quarter record $7,467,000 from $6,218,000 in 1999. Pretax income for the quarter was $719,000, or $0.05
per diluted share, compared to $579,000 or $0.04 per diluted share for the same period a year ago. Net income for the quarter was
$431,000, or $0.03 per diluted share, compared to $558,000, or $0.04 per diluted share for the same period a year ago.
President and Chief Executive Officer Donald M. Earhart explained that gross margins for the quarter were lower than the prior
year due to anticipated price reductions under existing distribution agreements. Total expenses were up due to the acquisition of
Spinal Specialties, Inc. and the increased activity related to the new pain management products. He added that earnings also
reflect an income tax provision for the first time, which was required as the Company changed its accounting for deferred tax
assets in the fourth quarter of fiscal 1999. Had this provision been applied to earnings for the same period a year ago, the net
income per diluted share would have been $0.02 per diluted share.
``During the first quarter, which historically is the Company's seasonally weakest reporting period, we were granted approval by
the U.S. Food and Drug Administration to sell our new five inch SoakerTM Catheter for use in pain management of large surgical
incisions. We also launched the Gertie Marx© Spinal Tray and the EpiStar© System for safer and easier spinal and epidural
procedures. Product innovations like these further strengthen I-Flow's presence in the pain management and regional anesthesia
markets. In the future, we will aggressively explore other therapeutic applications for our infusion technology in order to improve
patient comfort and contain costs,' Earhart said.
``The acquisition of Spinal Specialities is expected to be accretive to earnings this fiscal year and enables I-Flow to enter another
important therapeutic segment of the total pain management field where the opportunity for growth is believed to be substantial.
Their custom spinal, epidural and nerve block infusion kits are an important addition to the continuing development of I-Flow's pain
management product lines,' he said.
Earhart added that I-Flow's InfuSystem subsidiary, a nationwide contract supplier of infusion pump management services for the
oncology market, continued its impressive performance from last year. ``During the quarter InfuSystem was approved by US
Oncology, Inc. (Nasdaq:USON - news) to provide infusion pump management services to US Oncology's network of over 800
oncologists in 26 states. In addition, we won three new managed care contracts to provide infusion pump management services to
the entire member networks of Arnett Health Plans of Indiana, Ultimed HMO and ABP Administrators. Relationships of this
caliber provide I-Flow with the foundation for similar growth opportunities in the future,' he said.
At March 31, 2000, I-Flow reported working capital of $13.0 million, long-term debt of $1.2 million, and shareholders' equity of
$26.1 million. I-Flow Corporation (www.i-flowcorp.com) designs, develops and markets technically advanced, low cost
ambulatory infusion systems that are redefining the standard of care by providing life enhancing, cost effective solutions for pain
management and infusion therapy.
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