Net Profits Jump at Electro Rent

Increased rental activity in North America and Europe contributed to Electro Rent Corp. having a substantial increase in net income in the third quarter when compared to a year ago. The Van Nuys-based computer and test equipment provider reported net income of $5.1 million, or $0.21 per diluted share, on revenues of $59.5 million for the quarter ending Feb. 28. For the same period in 2010, the company had net revenue of $2.2 million, or $0.09 per diluted share, on revenues of $33 million. Rental and lease revenues rose to $28.7 million, from $22.6 million for the fiscal 2010 third quarter, reflecting increased rental demand in North America and Europe, added revenues from the company’s March 2010 acquisition of Telogy, LLC, and increased test and measurement leasing activity. The company’s future looks promising especially as companies cut costs and look to equipment rental options, said Electro Rent Chairman and CEO Daniel Greenberg. “Our strong and growing relationships with equipment suppliers gives us the opportunity to serve more of our customers’ needs by providing them with increased options, a worldwide network of support, and the economic strength and flexibility to provide all the equipment they need at the moment they need it,” Greenberg said.