<PAGE>   1

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                    FORM 10-Q
(Mark One)

[X]     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
        EXCHANGE ACT OF 1934.

                 For the quarterly period ended March 31, 1998

[ ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
        EXCHANGE ACT OF 1934

        For the transition period from  __________ to ___________
                         Commission file Number: 0-18338

                               I-Flow Corporation
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

              California                                         33-0121984
--------------------------------------------------------------------------------
(State or other jurisdiction of                              (I.R.S. Employer 
incorporation or organization)                               Identification No.)

20202 Windrow Drive Lake Forest, CA                                   92630
--------------------------------------------------------------------------------
(Address of principal executive offices)                           (Zip Code)

                                 (949) 206-2700
--------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)


--------------------------------------------------------------------------------
              (Former name, former address and former fiscal year,
                         if changed since last report)

        Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. [X] Yes [ ] No

                APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
                   PROCEEDINGS DURING THE PRECEDING FIVE YEARS

        Indicate by check mark whether the registrant has filed all documents
and reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.

                                                    [ ] Yes  [ ] No

                      APPLICABLE ONLY TO CORPORATE ISSUERS:

        Indicate the number of shares outstanding of each of the issuer's
classes of common stock as of the latest practicable date.

               As of March 31, 1998 there were 13,417,655 shares outstanding of
               Common Stock and 656,250 shares outstanding of Series B Preferred
               Stock.


<PAGE>   2



8

                               I-FLOW CORPORATION

                                    FORM 10-Q

                      FOR THE QUARTER ENDED MARCH 31, 1998



                                TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                           Page
                                                                                           ----
<S>                                                                                        <C>
      Part I:    Financial Information

           Item 1.  Financial Statements

           Consolidated Balance Sheets as of March 31, 1998 (Unaudited)
               and December 31, 1997                                                        3

           Consolidated Statements of Operations for the three month
               periods ended March 31, 1998 and 1997 (Unaudited)                            4

           Consolidated Statements of Cash Flows for the three-month periods
               ended March 31, 1998 and 1997 (Unaudited)                                    5

           Notes to Consolidated Financial Statements                                       6

           Item 2.  Management's Discussion and Analysis of Financial Condition
             and Results of Operations                                                      8

           Item 3.  Quantitative and Qualitative Disclosures about Market Risk             10

      Part II:  Other Information                                                          10

           Signatures                                                                      11
</TABLE>



<PAGE>   3

                               I-FLOW CORPORATION
                          CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>

                                                                                       March 31,       December 31,
                                                                                           1998            1997
                                                                                     ------------       ------------
                                                                                      (Unaudited)
<S>                                                                                  <C>                <C>         
ASSETS
  CURRENT ASSETS:
    Cash and cash equivalents                                                        $    635,000       $    715,000
    Accounts receivable, net                                                            6,009,000          5,127,000
    Inventories                                                                         5,037,000          4,058,000
    Prepaids and other                                                                    391,000            140,000
                                                                                     ------------       ------------
       Total current assets                                                            12,072,000         10,040,000
                                                                                     ------------       ------------

PROPERTY:
    Furniture, fixtures and equipment                                                   9,108,000          4,170,000
    Less accumulated depreciation                                                      (5,088,000)        (1,939,000)
                                                                                     ------------       ------------
       Property, net                                                                    4,020,000          2,231,000
                                                                                     ------------       ------------

OTHER ASSETS
    Goodwill and other intangibles, net                                                 7,535,000          3,983,000
    Notes receivable and other                                                            982,000          1,380,000
                                                                                     ------------       ------------
TOTAL                                                                                $ 24,609,000       $ 17,634,000
                                                                                     ============       ============

LIABILITIES AND SHAREHOLDERS' EQUITY

CURRENT LIABILITIES:
    Accounts payable                                                                 $  1,643,000       $  1,828,000
    Accrued payroll and related expenses                                                  937,000            895,000
    Deferred revenue                                                                       58,000             58,000
    Current portion of long-term debt                                                   4,029,000          1,000,000
    Borrowings under line-of-credit                                                            --          1,500,000
    Other liabilities                                                                      20,000            186,000
                                                                                     ------------       ------------
       Total current liabilities                                                        6,687,000          5,467,000
                                                                                     ------------       ------------
LONG-TERM DEBT                                                                          4,345,000          1,579,000
COMMITMENTS AND CONTINGENCIES

SHAREHOLDERS' EQUITY:
    Preferred stock - no par value; 5,000,000 shares authorized; 656,250 series
      B shares issued and outstanding at March 31, 1998 and December 31, 1997,
      respectively (aggregate preference on liquidation is $1,575,000)                  1,494,000          1,494,000
    Common stock - no par value; 40,000,000 shares
      authorized; 13,417,655 and 12,393,619 shares
      issued and outstanding at March 31, 1998 and
      December 31, 1997, respectively                                                  36,910,000         33,853,000
    Common stock warrants                                                                 615,000            615,000
    Accumulated deficit                                                               (25,442,000)       (25,374,000)
                                                                                     ------------       ------------
       Net shareholders' equity                                                        13,577,000         10,588,000
                                                                                     ------------       ------------
TOTAL                                                                                $ 24,609,000       $ 17,634,000
                                                                                     ============       ============
</TABLE>

See accompanying notes to condolidated financial statements


                                       3
<PAGE>   4
                               I-FLOW CORPORATION
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)
<TABLE>
<CAPTION>

                                       Three Months Ended
                                           March 31,
                                  -----------------------------
                                     1998             1997
                                  -----------       -----------
<S>                               <C>               <C>        
Net revenues                      $ 4,072,000       $ 4,302,000
                                  -----------       -----------
Costs and expenses:
  Cost of sales                     1,810,000         1,748,000
  Selling and marketing               853,000           793,000
  General and administrative        1,045,000           885,000
  Product development                 210,000           326,000
                                  -----------       -----------
    Total costs and expenses        3,918,000         3,752,000

Operating profit                      154,000           550,000

Interest income (expense)            (151,000)          (79,000)
Income taxes                           (7,000)          (17,000)
Amortization of intangibles          (144,000)         (117,000)
                                  -----------       -----------
Net income (loss)                 $  (148,000)      $   337,000
                                  ===========       ===========

Net income (loss) per share

     Basic                        $     (0.01)      $      0.03
                                  ===========       ===========
     Diluted                      $     (0.01)      $      0.02
                                  ===========       ===========
</TABLE>


See accompanying notes to consolidated financial statements.

                                       4

<PAGE>   5
                               I-FLOW CORPORATION
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                                  (Unaudited)
<TABLE>
<CAPTION>

                                                                         Three Months Ended
                                                                              March 31,
                                                                    -----------------------------
                                                                     1998              1997
                                                                    -----------       -----------
<S>                                                                 <C>               <C>        
CASH FLOWS FROM OPERATING ACTIVITIES:

Net income (loss)                                                   $  (148,000)      $   337,000
Adjustments to reconcile net income (loss)
  to net cash provided by operations:
  Depreciation and amortization                                         298,000           260,000
  Changes in operating assets and liabilities:
    Royalty receivable                                                       --         1,000,000
    Accounts receivable                                               1,656,000          (333,000)
    Inventories                                                        (295,000)         (367,000)
    Prepaid expenses and other                                          (98,000)           (8,000)
    Accounts payable, accrued and other liabilities                  (2,024,000)         (813,000)
                                                                    -----------       -----------
Net cash provided (used) by operating activities                       (611,000)           76,000
                                                                    -----------       -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Property (acquisitions) disposals                                      55,000          (211,000)
  Change in other assets                                               (360,000)         (120,000)
                                                                    -----------       -----------
Net cash used by investing activities                                  (305,000)         (331,000)
                                                                    -----------       -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Change in line of credit                                            2,263,000
  Change in notes payable                                            (1,500,000)         (250,000)
  Proceeds from exercise of stock options and warrants                   13,000            56,000
                                                                    -----------       -----------
Net cash provided (used) by financing activities                        776,000          (194,000)
                                                                    -----------       -----------

Effect of exchange rates on cash                                         60,000           (11,000)

NET DECREASE IN CASH AND CASH EQUIVALENTS                               (80,000)         (460,000)

CASH AND CASH EQUIVALENTS AT BEGINNING OF
  PERIOD                                                                715,000         1,651,000
                                                                    -----------       -----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD                          $   635,000       $ 1,191,000
                                                                    ===========       ===========

SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid                                                           155,000            84,000
                                                                    -----------       -----------
Income tax payments                                                       7,000            17,000
                                                                    -----------       -----------
Liabilities issued and assumed in connection with acquisition:
  Fair value of assets acquired (including intangibles)               8,254,000
  Common stock issued                                                 3,044,000
                                                                    -----------
Liabilities issued and assumed                                        5,210,000
                                                                    ===========
</TABLE>


See accompanying notes to consolidated financial statements

                                       5

<PAGE>   6


                               I-FLOW CORPORATION
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                   (Unaudited)

1.  BASIS OF PRESENTATION

        The accompanying unaudited consolidated financial statements contain all
        adjustments (consisting only of normal recurring adjustments) which, in
        the opinion of management, are necessary to present fairly the financial
        position of the Company at March 31, 1998 and the results of its
        operations and its cash flows for the three-month periods ended March
        31, 1998 and 1997. Certain information and footnote disclosures normally
        included in financial statements have been condensed or omitted pursuant
        to rules and regulations of the Securities and Exchange Commission
        although the Company believes that the disclosures in the financial
        statements are adequate to make the information presented not
        misleading.

        The financial statements included herein should be read in conjunction
        with the financial statements of the Company, included in the Company's
        Annual Report on Form 10-K for the year ended December 31, 1997 filed
        with the Securities and Exchange Commission on March 31, 1998.

        Certain amounts previously reported have been reclassified to conform
        with the presentation at March 31, 1998.

2.      EARNINGS PER SHARE

        In December 1997, the Company adopted Statement of Financial Accounting
        Standards ("SFAS") No. 128, Earnings per Share. SFAS No. 128 redefines
        earnings per share under generally accepted accounting principles. Under
        the new standard, primary net income per share is replaced by basic net
        income per share and fully diluted net income per share is replaced by
        diluted net income per share. All historical earnings per share
        information have been restated as required by SFAS No. 128.

        Basic net income (loss) per share is computed using the weighted average
        number of common shares outstanding during the periods presented.

        Diluted net income (loss) per share is computed using the weighted
        average number of common and common equivalent shares outstanding during
        the periods presented assuming the conversion of all shares of the
        Company's convertible preferred stock into common stock and the exercise
        of all in-the-money stock options. Common equivalent shares have not
        been included where inclusion would be antidilutive.

        Basic earnings per share approximates diluted earnings per share for
        each period represented. The following is a reconciliation between the
        number of shares used in the basic and diluted net income per share
        calculations:
<TABLE>
<CAPTION>

                                                           Three Months Ended 
                                                                March 31,
           (Amounts in thousands)                            1998        1997
        -------------------------------------------------   ------      ------
<S>                                                         <C>         <C>   
        Basic net income (loss) per  share
           Weighted average number of shares
           outstanding                                      12,951      12,070
        
           Effect of dilutive securities:
              Preferred stock                                  700         700
              Stock options                                     --       1,441
        -------------------------------------------------   ------      ------
        Diluted net income (loss) per share
           Weighted average number of shares 
           outstanding                                      13,651      14,211
        -------------------------------------------------   ------      ------
</TABLE>

                                       6
<PAGE>   7


3.       RECENT ACCOUNTING PRONOUNCEMENTS

        The Company has adopted SFAS No. 130, Reporting Comprehensive Income,
        for the period ending March 31, 1998 and 1997. The Company has no
        reportable differences between net income and comprehensive income.
        Therefore, no statement of comprehensive income has been presented.

        For the current year ending December 31, 1998, the Company will adopt
        SFAS No. 131, Disclosures About Segments of an Enterprise and Related
        Information. SFAS No. 131, which is based on the management approach to
        segment reporting, establishes requirements to report selected segment
        information quarterly and to report entity-wide disclosures about
        products and services, major customers and the material countries in
        which the entity holds assets and reports revenue. The Company has not
        yet determined the impact, if any, of adopting such standards on its
        consolidated financial statements.

4.      ACQUISITION OF INFUSYSTEMS II, INC. AND VENTURE MEDICAL, INC.

        On February 9, 1998, the Company entered into an Agreement and Plan of
        Merger (the "Agreement") with, InfuSystems II, Inc. ("InfuSystem"),
        Venture Medical, Inc. ("VMI") and the shareholders of InfuSystem and
        VMI, contemplating the merger of InfuSystem and VMI with and into a
        wholly-owned subsidiary of the Company. Pursuant to the Agreement, VMI
        and InfuSystem were merged (the "Merger") with and into the subsidiary
        effective as of February 11, 1998.

        In the Merger, all of the outstanding shares of Common Stock of VMI and
        InfuSystem were exchanged for shares of Common Stock of the Company. The
        aggregate number of shares of Common Stock of the Company issued in the
        Merger to the shareholders of VMI and InfuSystem was 972,372 shares,
        valued at approximately $2.9 million (subject to certain post-effective
        adjustments). The acquisition was accounted for under the purchase
        method of accounting and the purchase price has been allocated to the
        net assets acquired and goodwill.


                                       7

<PAGE>   8




ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                CONDITION AND RESULTS OF OPERATIONS


        Certain disclosures made by the Company in this report and in other
        reports and statements released by the Company are and will be
        forward-looking in nature, such as comments which express the Company's
        opinions about trends and factors which may impact future operating
        results. Disclosures which use words such as the Company "believes,"
        "anticipates," or "expects" or use similar expressions are intended to
        identify forward-looking statements. Such statements are subject to
        certain risks and uncertainties, which could cause actual results to
        differ from those, expected and readers are cautioned not to place undue
        reliance on these forward-looking statements. The Company undertakes no
        obligation to publish revised forward-looking statements to reflect the
        occurrence of unanticipated events. Readers are also urged to carefully
        review and consider the various disclosures made by the Company in this
        report which seek to advise interested parties of the risks and other
        factors that affect the Company's business, as well as in the Company's
        periodic reports on Forms 10-K, 10-Q, and 8-K filed with the Securities
        and Exchange Commission. The risks affecting the Company's business
        include reliance on the success of the Home Health Care Industry, the
        reimbursement system currently in place, competition in the industry,
        demand in foreign countries, customer credit risks, technological
        changes and product availability. Any such forward-looking statements,
        whether made in this report or elsewhere, should be considered in
        context with the various disclosures made by the Company about its
        business.

RESULTS OF OPERATIONS

        Net revenues during the three-month period ended March 31, 1998 were
        $4,072,000, compared to $4,302,000 for the same period in the prior
        year. In February 1998, the Company acquired two new subsidiaries,
        InfuSystems II, Inc. and Venture Medical, Inc., both of which were
        national ambulatory infusion pump management and distribution companies
        based in Detroit, Michigan. On February 11, 1998, these companies were
        merged into InfuSystem, Inc. (formally, I-Flow Subsidiary, Inc.) a
        wholly owned subsidiary of the Company. Revenue generated by InfuSystem,
        Inc. of $1,083,000 for the period from February 11, 1998 (date of
        acquisition) through March 31, 1998, was included in net revenues for
        the three-month period ended March 31, 1998.

        Revenues for the three-month period ended March 31, 1998 were adversely
        affected by the restructuring of I-Flow's worldwide distribution network
        as well as existing distributor inventory levels, which caused a
        short-term decline in shipments of infusion products to the Company's
        previous distribution partners.

        During this quarter the Company entered into an agreement with B. Braun
        Melsungen AG (G.BRN), a world leader in the manufacture and distribution
        of pharmaceuticals and infusion products, to distribute I-Flow's
        elastomeric infusion pumps in Western Europe, Eastern Europe, the Middle
        East, Asia Pacific, South America and Africa. The initial purchase
        minimum for the first eighteen months of this five-year agreement is
        approximately $4 million with shipments beginning in the second quarter.
        The Company also recently signed a letter of intent to enter into a
        similar agreement under which B. Braun of America, Inc. will distribute
        I-Flow's elastomeric pumps to its full line IV solution customers in the
        United States. These two new relationships are expected to generate
        significant sales opportunities for the Company for the remainder of
        1998 and beyond.

        Cost of sales of $1,810,000 were incurred during the three-month period
        ended March 31, 1998, compared to $1,748,000 in the prior year. As a
        percentage of net sales, cost of sales was relatively unchanged compared
        to the same period in the prior year.

        Selling and marketing expenses for the three-month period ended March
        31, 1998 increased over the same period in the prior year by $60,000 or
        8%, due to the addition of $138,000 in such expenses for InfuSystem,

                                       8
<PAGE>   9

        Inc. Without the InfuSystem, Inc. selling and marketing expenses, the
        Company's selling and marketing expenses would have declined by $78,000
        which relates to the decrease in product sales noted above.

        General and administrative expenses for the three-month period ended
        March 31, 1998 increased $160,000 or 18% from the same period in the
        prior year, due to the addition of $240,000 of such expenses for
        InfuSystem, Inc. Without the InfuSystem, Inc. general and administrative
        expenses, the Company's general and administrative expenses would have
        declined by $80,000 due to the Company's consolidating of its facilities
        in California in July 1997 and therefore lowering its facilities costs
        thereafter.

        Product development expenses for the three-month period ended March 31,
        1998 decreased over the same period in the prior year by $116,000, or
        36%. With the acquisition of Block Medical, Inc. in July 1996, the
        Company increased its engineering staff but has since decreased the
        overall engineering costs by consolidating the engineering efforts of
        Block Medical, Inc. with its own. The Company will continue to incur
        product development expenses as it continues its efforts to introduce
        new improved-technology, cost-efficient products into the market.


LIQUIDITY AND CAPITAL RESOURCES

        During the three-month period ended March 31, 1998, funds of $619,000
        were used by operating activities consisting of a net loss of $148,000
        less non-cash expenses of $208,000 plus net changes in operating assets
        and liabilities of $679,000. These changes in operating assets and
        liabilities consisted of: (1) an increase in accounts receivable of
        $1,656,000 due to the addition of InfuSystem, Inc., less (2) a decrease
        in inventory, prepaid expenses and other of $393,000 and (4) a reduction
        in accounts payable and other liabilities of $1,942,000 due to the
        timing of payments of trade accounts payable.

        The Company used funds for investing activities during the three-month
        period ended March 31, 1998 by acquiring leasehold improvements,
        furniture, fixtures, equipment and other assets aggregating $393,000 for
        use in its operations.

        During the three-month period ended March 31, 1998, funds of $874,000
        were provided by financing activities consisting primarily of proceeds
        from borrowings on notes payable net of payments on the line of credit.

        As of March 31, 1998, the Company had cash funds of $635,000 and net
        receivables of $6,009,000. To date, the Company has financed its
        operations and working capital requirements primarily through equity
        financings and bank borrowings. Management believes the Company's funds
        are sufficient to provide for its projected needs for operations for the
        next twelve months. However, the Company may decide to sell additional
        equity or increase its borrowings in order to fund increased product
        development or for other purposes.

YEAR 2000 COMPLIANCE

        Many currently installed computer systems and software products are
        coded to accept only two digit entries in the date code field. These
        date code fields will need to accept four digit entries to distinguish
        21st century dates from 20th century dates. As a result, in less than
        two years, computer systems and/or software used in many companies may
        need to be upgraded to comply with such "Year 2000" requirements.

        The Company is in the process of evaluating its own products for
        potential Year 2000 issues and making such products Year 2000 compliant.
        The Company does not believe that there will be significant issues or
        costs associated to make their products Year 2000 compliant; however,
        there can be no assurance that such products do not contain undetected
        errors or defects associated with year 2000 date functions.

        The Company has received confirmation from vendors of certain purchased
        software used for internal operations that current releases or upgrades,
        if installed, are designed to be Year 2000 compliant. The 


                                       9
<PAGE>   10
        Company is in the process of installing such upgrades to its current
        systems and believes that substantially all of the upgrades will be
        completed by December 31, 1998.

        The Company currently believes that becoming Year 2000 compliant will
        not have a significant impact on the financial position or results of
        operations of the Company. Although the Company is not aware of any
        material operational issues or costs associated with preparing its
        products or internal information systems for the year 2000, there can be
        no assurances that the Company will not experience serious unanticipated
        negative consequences and/or material costs caused by undetected errors
        or defects in the technology used in its internal systems, which are
        composed predominantly of third party software and hardware.

Item 3.  Quantitative and Qualitative Disclosures about Market Risk.    
         -  Not Applicable


                           PART II - OTHER INFORMATION

Item 1.     Not Applicable

Item 2.     Changes in Securities and Use of Proceeds

            On February 9, 1998, the Company entered into an Agreement and Plan
            of Merger (the "Agreement") with, InfuSystems II, Inc.
            ("InfuSystem"), Venture Medical, Inc. ("VMI") and the shareholders
            of InfuSystems and VMI, contemplating the merger of InfuSystem and
            VMI with and into a wholly-owned subsidiary of the Company. Pursuant
            to the Agreement, VMI and InfuSystem were merged (the "Merger") with
            and into the subsidiary effective as of February 11, 1998 (the
            "Effective Time"). In the Merger, all of the outstanding shares of
            Common Stock of VMI and InfuSystem were exchanged for shares of
            Common Stock of the Company. The aggregate number of shares of
            Common Stock of the Company issued in the Merger to the shareholders
            of VMI and InfuSystem was 972,372 shares. IN accordance with the
            terms of the Agreement, 59,395 shares of the Company's Common Stock
            were issued to Amherst Capital Partners, L.L.C. (Amherst"),
            investment banker for InfuSystems II, Inc. and Venture Medical,
            Inc., as payment of Amherst's fees and expenses in connection with
            the Merger. The Company relied on the exemption from registration
            provided by Section 4(2) of the Securities Act of 1933, as amended.
            Pursuant to the Merger Agreement, the Company is obligated to use
            its commercially reasonable best efforts to register the shares of
            Common Stock within six months after the Effective Time.

Items 3.-5. Not Applicable

Item 6.     Exhibits and Reports on Form 8-K

           (a)     Exhibits

    Exhibit No.                               Exhibit

      3.1            Restated Articles of Incorporation of the Company(2)

      3.2            Certificate of Amendment to Restated Articles of
                     Incorporation dated June 14, 1991(3)

      3.3            Certificate of Amendment to Restated Articles of
                     Incorporation dated May 12, 1992(4)

      3.4            Certificate of Determination covering Company's Series B
                     Preferred Stock filed with the Secretary of State on
                     October 5, 1992(4)

      3.5            Restated Bylaws as of July 22, 1991 of the Company(3)

      4.1            Specimen Common Stock Certificate(4)

      4.2            Warrant Agreement between the Company and American Stock
                     Transfer & Trust Company, as Warrant Agent, dated February
                     13, 1990(1)

      4.3            Form of Warrant dated July 22, 1996, issued in conjunction
                     with the acquisition of Block Medical, Inc.(5)

      10.1           Agreement and Plan of Merger by and among I-Flow
                     Corporation, I-Flow Subsidiary, Inc., Venture Medical,
                     Inc., and InfuSystems II, Inc. and the Shareholders of
                     Venture Medical, Inc. and InfuSystems II, Inc.(6)

      27             Financial Data Schedule


(1)     Incorporated by reference to exhibit with this title filed with the
        Company's Registration Statement (#33-32263-LA) declared effective
        February 1, 1990.

(2)     Incorporated by reference to exhibit with this title filed with the
        Company's Form 10-K for its fiscal year ended September 30, 1990.

(3)     Incorporated by reference to exhibit with this title filed with the
        Company's Registration Statement (#33-41207-LA) declared effective
        August 8, 1991.

(4)     Incorporated by reference to exhibit with this title filed with the
        Company's Post Effective Amendment to its Registration Statement
        (#33-41207-LA) declared effective November 6, 1992.

(5)     Incorporated by reference to exhibit with this title filed with the
        Company's Report on Form 8-K dated July 22, 1996.

(6)     Incorporated by reference to exhibit with this title filed with the
        Company's Report on Form 8-K dated February 9, 1998.

        (b)     During the quarter ended March 31, 1998, the Company filed a
                Current Report on Form 8-K dated February 9, 1998 regarding the
                acquisition of InfuSystem II, Inc. and Venture Medical, Inc. The
                Company also filed an Amendment No. 1 and Amendment No. 2 to
                such report which included financial statements of the business
                acquired and pro forma financial information.

                                       10
<PAGE>   11




                                   SIGNATURES





        Pursuant to the requirements of the Securities Exchange Act of 1934, the
        Registrant has duly caused this Report to be signed on its behalf by the
        undersigned thereunto duly authorized.


                                                 I-FLOW CORPORATION
                                                    (Registrant)





        Date:             May 14, 1998           Donald  M. Earhart /s/
                                                 -------------------------------
                                                 Donald M. Earhart,
                                                 Chairman, President and CEO




        Date:             May 14, 1998           Gayle L. Arnold /s/
                                                 -------------------------------
                                                 Gayle L. Arnold,
                                                 Vice President, Finance, Chief 
                                                 Financial Officer


                                       11
<PAGE>   12



                                INDEX TO EXHIBITS

    Set forth below is a list of the exhibits included or incorporated by
reference as part of this report:

    Exhibit No.                               Exhibit

      3.1            Restated Articles of Incorporation of the Company(2)

      3.2            Certificate of Amendment to Restated Articles of
                     Incorporation dated June 14, 1991(3)

      3.3            Certificate of Amendment to Restated Articles of
                     Incorporation dated May 12, 1992(4)

      3.4            Certificate of Determination covering Company's Series B
                     Preferred Stock filed with the Secretary of State on
                     October 5, 1992(4)

      3.5            Restated Bylaws as of July 22, 1991 of the Company(3)

      4.1            Specimen Common Stock Certificate(4)

      4.2            Warrant Agreement between the Company and American Stock
                     Transfer & Trust Company, as Warrant Agent, dated February
                     13, 1990(1)

      4.3            Form of Warrant dated July 22, 1996, issued in conjunction
                     with the acquisition of Block Medical, Inc.(5)

      10.1           Agreement and Plan of Merger by and among I-Flow
                     Corporation, I-Flow Subsidiary, Inc., Venture Medical,
                     Inc., and InfuSystems II, Inc. and the Shareholders of
                     Venture Medical, Inc. and InfuSystems II, Inc.(6)

      27             Financial Data Schedule


(1)     Incorporated by reference to exhibit with this title filed with the
        Company's Registration Statement (#33-32263-LA) declared effective
        February 1, 1990.

(2)     Incorporated by reference to exhibit with this title filed with the
        Company's Form 10-K for its fiscal year ended September 30, 1990.

(3)     Incorporated by reference to exhibit with this title filed with the
        Company's Registration Statement (#33-41207-LA) declared effective
        August 8, 1991.

(4)     Incorporated by reference to exhibit with this title filed with the
        Company's Post Effective Amendment to its Registration Statement
        (#33-41207-LA) declared effective November 6, 1992.

(5)     Incorporated by reference to exhibit with this title filed with the
        Company's Report on Form 8-K dated July 22, 1996.

(6)     Incorporated by reference to exhibit with this title filed with the
        Company's Report on Form 8-K dated February 9, 1998.

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