Electro Rent Corp on Monday reported a 136 percent increase in net income for its fiscal third quarter, as more companies bought or leased its electronic test equipment, personal computers and servers.
The Van Nuys company reported net income of $5.08 million (21 cents per share) for the quarter ended Feb. 18, compared with net income of $2.15 million (9 cents) a year earlier.
Total revenue rose 80 percent to $59.45 million. Sales of equipment jumped 200 percent to $30.8 million, and rental-lease revenues rose 27 percent to $28.7 million. At the end of the quarter, the company had a sales order backlog of $15.8 million.
“We have been able to successfully capitalize on a robust environment for the sale and rental of test and measurement equipment through aggressive and timely purchases of additional equipment, driving our performance to new heights,” said Chief Executive Daniel Greenberg in a statement. “The current environment of cost reductions appears to be increasing companies’ consideration of rental options.”
Shares were down 4 cents, or less than 1 percent, to $17.28 in midday trading on the Nasdaq.
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