Homestore reports a good year.Homestore Inc., a provider of real estate media an technology solutions, reported financial results for the third quarter ended September 30, 2003. Revenue for the third quarter increased to $55.1 million from $53.9 million for the second quarter of 2003. The gross margin remained constant at 72 percent. Homestore also reported that the loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the third quarter was $30.6 million, or $(0.26) per share, compared to the loss from continuing operations of $94 million, or $0.80 per share for the second quarter of 2003. The net loss for the third quarter was $30.6 million, or $0.26 per share, compared with a net loss of $91.7 million, or $0.78 per share, in the second quarter of 2003. Results for the third quarter included an impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge of $15.7 million for the write down of certain long-lived assets under SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System Nos. 144 and 142. This charge resulted from management's review and subsequent revaluation Revaluation A calculated adjustment to a country's official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold to a foreign currency. In a fixed exchange rate regime, only a decision by a country's government (i.e. of certain historical intangibles and other long-lived assets. The second quarter results included non-recurring charges related to the settlements of the California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). State Teachers' Retirement Systems class action lawsuit class action lawsuit A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax and the Cendant dispute totaling $75.8 million. Excluding impairment and settlement charges and certain other non-cash expenses Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) , principally stock-based charges, depreciation, and amortization, Homestore's loss from operations was $4.8 million in the third quarter, compared to a loss of $7.6 million in the second quarter of 2003. The decrease in loss was primarily due to a $1.2 million increase in revenue and a reduction in the company's operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . The third quarter e marks the first time each of the company's segments, Media, Software and Print, generated an increase in non-related party revenue over the prior quarter. At September 30, 2003, Homestore had $52.7 million in cash and short-term investments available to fund operations. After giving effect to a $10 million cash payment on October 15, required pursuant to the preliminary approval of the class action settlement, Homestore had $42.7 million available to fund its on-going operations entering the fourth quarter. Homestore's chief executive officer, Mike Long, commented on the quarter, "During the third quarter, we were able to increase our operational focus, having resolved substantially all of our legacy financial and legal challenges. Increased consumer waffle See WAFL. to our Web sites, new advertising products for real estate professionals, new relationships with major retail advertisers, and the growing acceptance of our media-based pricing model increase the confidence we have in the business." "While we have much work left to do to complete our turn around, we believe that the investments made in product development, distribution, sales and customer service will serve as a strong foundation from which we can grow." |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion