Our rental and lease revenue continued their solid growth last quarter, and we see favorable conditions for continued growth in our core markets in the United States and our operations in China and Europe.
Daniel Greenberg, Chairman and CEO, Electro Rent

Electro Rent Corporation reported total revenues increased 4.8% to $30.7 million for the three months ended February 28, 2007, compared to $29.3 million for the third quarter of fiscal 2006. Rental and lease revenue increased 11.9% to $24.7 million for this fiscal year's third quarter, compared to $22.1 million a year earlier, reflecting higher demand for T&M equipment in Electro Rent's domestic markets, as well as its expansion into China and Europe and the acquisition in January 2006 of Rush Computer Rentals. Revenue from equipment sales and other revenues decreased 16.8% to $6.0 million compared to $7.2 million.

"Our rental and lease revenue continued their solid growth last quarter, and we see favorable conditions for continued growth in our core markets in the United States and our operations in China and Europe," commented Chairman and CEO Daniel Greenberg.

"We intend to continue our strategy of leveraging Electro Rent's operating and logistical capabilities through domestic and international expansion. As a result, we are incurring additional costs in the short term to fund our long-term objectives. Our implementation of this policy, coupled with intensifying competition in our test and measurement business, contributed to lower profitability this quarter. We look forward to improving our profitability as we meet these challenges, successfully implement new programs, and reap the rewards of an integrated global business that can deliver profitable growth over an extended period of time," Greenberg said.