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Monday, May 20, 2024

Net Income Declines for Electro Rent

Electro Rent Corp. reported flat revenue growth and a 39 percent decrease in net income for the second quarter despite having rented out more electronic test equipment, personal computers and servers compared to a year ago. The Van Nuys-based company saw an impact on its foreign operations due to the global economic downturn. Competitive pressures, reduced rental pricing and marketplace uncertainty, both here and abroad, contributed to flat revenue growth, company officials said. Electro Rent reported net income of $3.5 million, or $0.14 per diluted share, on revenues of $35.4 million for the quarter ending Nov. 30. In the same period from 2007, the company reported net income of $5.7 million, or $0.22 per diluted share, on revenues of $35.4 million. For the six month period in fiscal 2009, the company reported net income of $7.9 million, or $0.31 per diluted share, on revenue of $70.4 million. A year ago, the company had net income of $11 million, or $0.42 per diluted share, on revenues of $70 million.

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