Electro Rent Announces Non-Renewal of Authorized Technology Partner Agreement with Keysight Technologies
March 03 2015 - 8:00AM
Business Wire
Electro Rent Corporation (Nasdaq: ELRC) today announced
that its Authorized Technology Partner (ATP) agreement with
Keysight Technologies, Inc., formerly a unit of Agilent
Technologies Inc., will not be renewed after its May 31, 2015
expiration date. Electro Rent will continue to sell used equipment,
and rent and lease equipment made by Keysight and other
manufacturers, directly to customers in North America and
globally.
Under the agreement, which has been in effect since 2009,
Electro Rent has been the exclusive reseller of new Keysight test
and measurement equipment for sale in the United States and Canada.
As a result of the non-renewal, Electro Rent will gain the
flexibility to explore new and different distribution agreements
and Keysight will resume direct marketing to customers as an
independent company.
“During the course of the ATP program, we substantially
strengthened our business by expanding our customer base, sales
force and sales infrastructure. We will now be able to take
advantage of this infrastructure to pursue new growth opportunities
and revenue streams,” said Daniel Greenberg, Chairman and CEO of
Electro Rent. “Keysight has been a valued partner for the last five
and a half years, and we look forward to continuing a productive
relationship with them in all other respects.”
The ATP agreement contributed approximately $52 million in sales
revenue to Electro Rent from reseller activities for the first nine
months of the current fiscal year.
“While ending the agreement will negatively impact our revenue
in the coming fiscal year, and we will remain alert to the need to
align our expenses with our revenues, we look forward to
identifying additional areas of growth. We are confident that
Electro Rent’s ability to meet and exceed our customers’
expectations will remain unfettered.”
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.
"Safe Harbor" Statement:
Except for the historical statements and discussions in this
press release, the company’s statements above constitute
forward-looking statements within the meaning of section 21E of the
Securities Exchange Act of 1934. These forward-looking statements,
including, but not limited to aligning expenses with expected
revenue levels, the continuing productive relationship with
Keysight, and further enhancing growth opportunities and creating
new revenue streams, reflect Electro Rent’s management's current
views with respect to future events and financial performance;
however, undue reliance should not be placed on these statements.
When used, the words "expect" and "will" and other similar
expressions identify forward-looking statements. These
forward-looking statements are subject to certain risks and
uncertainties. The company believes its assumptions are reasonable;
nonetheless, it is likely that at least some of these assumptions
will not come true. Accordingly, Electro Rent’s actual results will
probably differ from the outcomes contained in any forward-looking
statement, and those differences could be material. Factors that
could cause or contribute to these differences include, among
others, those risks and uncertainties discussed in the company’s
periodic reports on Form 10-K and 10-Q and in its other filings
with the Securities and Exchange Commission. Should one or more of
the risks discussed, or any other risks, materialize, or should one
or more of our underlying assumptions prove incorrect, the
company’s actual results may vary materially from those
anticipated, estimated, expected or projected. In light of the
risks and uncertainties, there can be no assurance that any
forward-looking statement will in fact prove to be correct. Electro
Rent undertakes no obligation to update or revise any
forward-looking statements.
Electro Rent CorporationDaniel Greenberg, Chairman and
CEO818-786-2525orPondelWilkinson Inc.Roger Pondel/Laurie
Berman310-279-5980pwinvestor@pondel.com
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