First Albany downgraded I-Flow Corp. (IFLO ) to neutral from strong buy.
Analyst William Plovanic says recent channel checks indicate ON-Q sales reps are having a difficult time meeting or exceeding sales quotas. As such, he thinks it's unlikely that the significant sequential sales ramp expected for the second quarter will occur.
Plovanic cut his $103.3 million 2005 revenue estimate to $98.7 million and his $131.9 million 2006 revenue forecast to $117.3 million. He widened his 18 cents 2005 loss per share estimate to a 22 cents loss, and cut his 30 cents 2006 EPS forecast to 7 cents EPS.
He notes that the new estimates reflect lowered projections for ON-Q sales into the hospital market; contributing to lower expectations is the fact new hires are not ramping as fast as originally projected.