VAN NUYS, Calif. (AP) -- Electro Rent Corp., which leases computers and electronic test equipment, said Tuesday that its fiscal third-quarter net income dipped 2 percent as sales of new and used equipment slowed and defense companies delayed purchasing decisions.
The company's stock dropped $1.15, or 6.2 percent, to $17.54 in afternoon trading. Its shares peaked last week at a 52-week high of $19.35, and are still up almost 40 percent from their low of $12.64 in early October.
Elecctro Rent reported net income of $5 million, or 21 cents per share, for the period ended Feb. 29, compared with $5.1 million, or 21 cents per share, a year earlier.
The company said that its performance was hurt by an increased depreciation expense and higher selling, general and administrative expenses.
Revenue rose 1 percent to $60.1 million from $59.5 million on higher revenue from businesses renting and leasing equipment.
Sales order backlog for test and measurement equipment related to the company's Agilent resale agreement fell to $11.8 million from $15.8 million. Electro Rent said that it expects most of the backlog to be delivered to customers within the next six months.