Madison Heights-based InfuSystem Holdings Inc. (OTC Bulletin Board: INHI; INHIW; INHIU), a provider of ambulatory infusion pumps and associated clinical services, Wednesday announced financial results and provided a business update for the second quarter of 2008.

InfuSystem was spun out of I-Flow Corp. last year.

Revenue for the second quarter ended June 30 was $8.8 million, up from $7.8 million at the former InfuSystem Inc. subsidiary of I-Flow.

Operating income for the second quarter of 2008 was $1.1 million versus an operating loss of $1.1 million for the same period in 2007. The increase in operating income for the second quarter of 2008 reflects revenue and operating expenses recorded for InfuSystem Inc. following the acquisition.

The net loss for the second quarter was $1.8 million, or 10 cents a share, compared to net loss of $2.2 million or 12 cents a share for the same period in 2007. Most of the loss was caused by derivative financial instruments, chiefly in the company's own warrants. Sales and marketing expenses were $1.2 million vs. zero a year earlier, while selling, general and administrative expenses jumped to $2.8 million from $1.1 million a year earlier.

Ambulatory infusion pumps are used by oncology practices to allow for the gradual delivery of a drug over a period of days in the privacy of one's home, compared to bolus infusion chemotherapy treatments that are given in a single high dose over a short period of time. Improved efficacy of the drugs, patient comfort, reimbursement to doctors for appropriate services and continuity of care all play a role in the growing trend toward this form of treatment.

InfuSystem's pumps are primarily used for colorectal cancer, but they have been approved for other forms of cancer, thereby greatly enhancing the market opportunity for InfuSystem.

For the six months, revenue was $17.4 million, vs. $15.7 million at the predecessor company. The company reported net income of $3 million for the six months or 16 cents a share, vs. a loss of $423,000 or 2 cents a share a year earlier.

More at www.infusystem.com.