I-Flow Reports Income Drop, Cites Tax Changes

Medical device maker I-Flow Corp. in Lake Forest said net income for the fourth quarter totaled $671,000, or 4 cents a share, down from $6.3 million, or 41 cents a share, which included a one-time tax benefit of $4.8 million. Revenue rose 12% to a record $9.4 million. Net income for the year was $1.6 million, or 10 cents a share, compared with net income of $8.8 million, or 58 cents a share, for 1999. Revenue was up 7% to $32 million.

I-Flow’s earnings for the fourth quarter and year reflect a higher income tax rate, which was required as the company changed its accounting for deferred tax assets in the fourth quarter of 1999.