Technology services provider Comdisco reported first-quarter earnings above analysts' expectations. For the quarter, net income was $88 million, or 56 cents per share, compared with $42 million, or 26 cents in the year-ago period. Analysts polled by First Call expected the company to earn 50 cents. Revenue for the quarter reached $909 million compared with last year's $876 million.
Although its leasing and venture businesses exceeded quarterly targets, the Rosemont, Ill.-based company said it was disappointed with the performance of its technology services division. Comdisco experienced larger-than-expected costs in technology services because of investments made in its Web services business and losses tied to its network services business. Earlier this month, the company announced that it will no longer provide managed network services. Also during the quarter, Comdisco paid off approximately $505 million, or 32 percent, of $1.6 billion in senior unsecured debt.