I-Flow reports financial results for the third quarter of 2009

I-FLOW CORPORATION (NASDAQ:IFLO) announced today that total revenue for the third quarter ended September 30, 2009 increased 14% to $36.7 million compared to total revenue of $32.2 million for the third quarter of 2008.

Regional Anesthesia (RA) sales of the Company's flagship ON-Q^® product lines increased 11% for this year's third quarter to $27.5 million compared to $24.8 million for the third quarter of 2008. AcryMed revenues were $0.8 million for this year's third quarter compared to $1.5 million for the third quarter of 2008. The prior year quarter included $0.7 million of sales for temporary pilot production prior to the planned transfer of manufacturing responsibility to a customer. IV Infusion Therapy revenue for the third quarter of 2009 increased 41% to $8.4 million compared to $5.9 million for the third quarter of 2008.

Net income for the third quarter of 2009 increased to $0.7 million, or $0.03 per basic and diluted share. This compares to a net loss of $14.1 million, or $0.57 per basic and diluted share, for the third quarter of 2008. Transaction costs of approximately $0.8 million were incurred during the third quarter of 2009 in connection with the sale process resulting in the recently announced definitive merger agreement with Kimberly-Clark Corporation (Kimberly-Clark) providing for the acquisition of I-Flow by Kimberly-Clark for $12.65 per share in cash. The net loss for the third quarter of 2008 included a purchase accounting write-off of $11.6 million of in-process research and development charges acquired in connection with the acquisition in February 2008 of AcryMed and a $4.6 million non-cash impairment loss on the common shares of InfuSystem Holdings, Inc., formerly HAPC, Inc., owned by I-Flow.

Total revenue for the first nine months of 2009 increased 9% to $104.8 million compared to $96.0 million for the first nine months of 2008. RA sales increased 7% for this year's first nine months to $78.5 million compared to $73.5 million for first nine months of 2008. AcryMed revenues were $2.5 million for this year's first nine months compared to $3.8 million for the same period of 2008. AcryMed's revenue in the prior year period included $1.9 million of sales for temporary pilot production prior to the planned transfer of manufacturing responsibility to a customer. IV Infusion Therapy revenue for the first nine months of 2009 increased 28% to $23.8 million compared to $18.6 million for the first nine months of 2008.

The net loss for the nine months ended September 30, 2009 was $1.8 million, or $0.07 per basic and diluted share. This compares to a net loss for the nine months ended September 30, 2008 of $26.1 million, or $1.05 per basic and diluted share. Transaction costs of approximately $1.0 million were incurred during the nine months ended September 30, 2009 in connection with the sale process resulting in the recently announced definitive merger agreement with Kimberly-Clark. The net loss for the first nine months of 2008 included the purchase accounting write-off of $11.6 million for in-process research and development costs, the $4.6 million for impairment loss and $12.3 million of certain litigation and insurance charges, which consisted of a $3.5 million expense to purchase retroactive insurance policies to significantly increase the Company's product liability insurance coverage and $8.8 million in loss contingency that the Company accrued in connection with ongoing litigation.

At September 30, 2009, I-Flow reported net working capital of approximately $79.3 million, including cash, cash equivalents and short-term investments of $54.3 million, and stockholders' equity of $118.3 million.

SOURCE I-Flow Corporation