Van Nuys-based computer rental and leasing service Electro Rent Corporation reported a drop in its third quarter earnings of $5.9 million, or $0.23 per share on sales of $29.3 million due to an increase in operating expenses. For the same period last year, the company reported earnings of $6.9 million, or $0.27 per share on sales of $28.8 million. The decline in earnings was a result of increased expenses associated mainly with Electro Rent’s expansion into Chinese and European markets. Rental and leasing reveneues increased 17.6 percent to $22.1 million for the third quarter in 2006 compared with $18.8 million for the same period in 2005. Daniel Greenberg, chairman and C.E.O of Electro Rent said in a press release that full year sales for 2006 are expected to exceed sales for 2005, but earnings for 2006 may not match earnings for 2005.
Electro Rent Earnings Drop