Electro Rent Income Doubles in Q1

Strong sales and an exclusive agreement to sell equipment from Agilent Technologies contributed to Electro Rent Corp. more than doubling its net income when compared to a year ago. The Van Nuys-based computer and electronic test equipment provider reported net income of $5.2 million, or $0.22 per diluted share, on revenues of $50.8 million for the quarter ending Aug. 31. For the same period in 2009, the company reported net income of $2.1 million, or $0.09 per diluted share, on revenues of $32.2 million. Electro Rent showed an ability to convert increased rentals, its acquisition of test equipment provider Telogy LLC and the Agilent deal into meaningful growth for both the top and bottom line, said Chairman and CEO Daniel Greenberg. “We remain focused on expanding our revenue generating capabilities and achieving continued profitability by doing what we do best: providing customers with unsurpassed access to the equipment they need and making the most of the select new business opportunities afforded to us by our strengthened marketplace position.,” Greenberg said. Electro Rent closed on the $24.7 million acquisition of Telogy in April. Earlier in the year, the company signed the exclusive agreement to provide equipment from Agilent, a move that required the hiring of 33 new employees.