8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported) August 4, 2009

Electro Rent Corporation

(Exact Name of Registrant as Specified in Charter)

California	0-9061	95-2412961
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

6060 Sepulveda Boulevard, Van Nuys, CA	91411-2501
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (818) 787-2100

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2 below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02(a). Results of Operations and Financial Condition

The following information is furnished pursuant to Item 2.02, "Results of Operations and Financial Condition."

On August 4, 2009, Electro Rent Corporation issued a press release announcing its financial results for the fourth quarter and fiscal year ended May 31, 2009. A copy of the press release is furnished as Exhibit 99.1 to this report.

Item 9.01. Financial Statements and Exhibits.

(c)	Exhibits.
99.1	Press release dated August 4, 2009.

SIGNATURES

Pursuant to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	Electro Rent Corporation
Date: August 5, 2009	By:	/s/ Craig R. Jones
		Craig R. Jones
		Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

For More Information, Contact:

Daniel Greenberg, Chairman & CEO	Roger Pondel/Laurie Berman
Electro Rent Corporation	PondelWilkinson Inc.
818-786-2525	310-279-5980
	investor@pondel.com

ELECTRO RENT REPORTS FINANCIAL RESULTS

FOR FISCAL 2008 FOURTH QUARTER AND FULL YEAR

VAN NUYS, Calif. - August 4, 2009 - Electro Rent Corporation (NASDAQ:ELRC) today reported financial results for its 2009 fiscal fourth quarter and full year ended May 31, 2009.

Total revenues for the fiscal 2009 fourth quarter were $30.0 million, compared with $38.9 million for the fiscal 2008 fourth quarter.  Rental and lease revenues equaled $22.5 million, versus $27.6 million in last year’s fourth quarter.  Equipment sales and other revenues were $7.5 million for the fiscal 2009 fourth quarter, compared with $11.3 million in the same fiscal 2008 quarter.

“As the fiscal year came to a close, we were unable to avoid the sobering effects of the economic crisis,” said Daniel Greenberg, Chairman and CEO of Electro Rent.  “While the amount of equipment we had on rent remained relatively stable in the United States in the fourth quarter, the ongoing recession and continued competitive pressures negatively impacted margins.  Overseas, as was the case for most of the year, our European business did relatively well, but manufacturing activity was down substantially in Asia, which, in turn, impacted our business in China.”

SG&A expenses for the fiscal 2009 fourth quarter were $10.1 million, or 33.5% of total revenues, compared with $11.5 million, or 29.7% of total revenues, in the year-ago period.  The reduction in SG&A expenses primarily reflected proactive cost-cutting measures throughout the company.

Total operating expenses declined to $26.5 million for the fiscal 2009 fourth quarter from $31.2 million in the year-ago period, primarily reflecting lower costs of revenue and reduced SG&A expenses.  Interest income was $139,000 for the fourth quarter of fiscal 2009, versus $665,000 in the prior year, principally due to lower interest rates and a smaller cash balance.

Operating profit for the fourth quarter of fiscal 2009 amounted to $3.5 million, or 11.7% of total revenues, versus $7.7 million, or 19.7% of total revenues, for last year’s fourth quarter.

Net income for the fiscal 2009 fourth quarter was $2.0 million, or $0.08 per diluted share, compared with $5.2 million, or $0.20 per diluted share, for the same period last year.

 “We took early steps to lower expenses and help reduce our economic exposure, working diligently to ensure that our business is properly matched to the current economic reality, while at the same time working to avoid compromising our long-term objectives,” Greenberg said.  “We purchased less equipment, reduced our workforce and implemented changes to our compensation structure, while keeping our core competencies intact. As a result, we have successfully preserved cash and maintained the company’s financial flexibility.  This fiscal prudence has been a hallmark of Electro Rent’s operating history and is of the utmost importance as we identify new revenue generating opportunities that have become available as a result of the current economic predicament.  Moreover, demonstrating management’s and the board’s confidence in the company’s future, we continued to purchase Electro Rent shares and pay a dividend on our common stock,” Greenberg added.

For fiscal 2009, total revenues were $130.5 million, compared with $144.5 million for fiscal 2008.  Rental and lease revenues for fiscal 2009 were $98.4 million, versus $108.8 million last year.  Equipment sales and other revenues were $32.1 million for fiscal 2009, versus $35.8 million for fiscal 2008.

SG&A expenses were $44.5 million, or 34.1% of total revenues, for fiscal 2009, versus $43.9 million, or 30.4% of total revenues, for fiscal 2008.  Total operating expenses for fiscal 2009 were $113.1 million, slightly below the $113.8 million last year.

Operating profit was $17.4 million, or 13.3% of total revenue, for fiscal 2009, versus $30.7 million, or 21.2% of revenue, in the prior year.

Net income for fiscal 2009 was $11.8 million, or $0.47 per diluted share, compared with $21.1 million, or $0.81 per diluted share, for fiscal 2008.

Equipment purchases for the fiscal 2009 fourth quarter and full year were $8.5 million and $50.2 million, respectively, compared with $23.2 million and $76.0 million, respectively, for the fiscal 2008 fourth quarter and full year.  The book value of Electro Rent's equipment pool was $158.3 million at May 31, 2009, versus $172.5 million at May 31, 2008.

During the fourth quarter of fiscal 2009, Electro Rent purchased 296,892 shares of its common stock at an average price of $8.14 per share, for a total expenditure of $2.4 million.  For the full year, Electro Rent purchased 2,138,057 shares of its common stock at an average price of $10.67 per share, for a total expenditure of $22.8 million.

Electro Rent paid dividends totaling $15.0 million and $11.7 million for fiscal 2009 and 2008, respectively.  On an annualized basis, the company’s current quarterly dividend of $0.15 per common share represents a 6.3% yield on the July 31, 2009 close price of $9.52.

Total shareholders' equity was $228.8 million, or $9.55 per share, at May 31, 2009, compared with $256.1 million, or $9.87 per share, at May 31, 2008.  Electro Rent has no debt on its balance sheet.

At May 31, 2009, Electro Rent had $22.2 million in cash and cash equivalents, $28.2 million in short-term bond funds and $21.6 million (at cost) in auction rate securities (ARS) for a total cash, cash equivalents and investments balance of $72.0 million, versus $74.6 million at May 31, 2008.

About Electro Rent

Electro Rent Corporation (www.ElectroRent.com) is one of the largest global organizations devoted to the rental, leasing and sales of general purpose electronic test equipment, personal computers and servers.

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