Electro Rent Corp. on Monday said that its fiscal first-quarter net income more than doubled due to an acquisition, a partnership deal and increased rental demand for its products.
After the markets closed, the Van Nuys company, which supplies electronic test and computer equipment, reported net income of $5.2 million (22 cents per share) for the quarter ended Aug. 31, compared with $2.1 million (9 cents) a year earlier.
“Buoyed by improving economic conditions, we once again drove double-digit sales increases in the first quarter,” said Chief Executive Daniel Greenberg in a statement.
Revenue rose 58 percent to $50.8 million, with rental and lease revenue up a third to $28.8 million.
In the past year, the company acquired equipment provider Telogy LLC and agreed to become the sole authorized U.S.-Canada technology partner of Agilent Technologies. Those deals offset declines in sales of used equipment and other business.
Shares closed down 35 cents, or 2.6 percent, to $12.91 on the Nasdaq, but were up 2.6 percent in after-hours trading.
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