Homestore Inc. reports increased revenue

Homestore Inc. reports increased revenue

Homestore Inc. posted a narrower third quarter loss compared to the same period last year, officials reported last week.

The Westlake Village-based online real estate solutions provider said operating losses for the quarter that ended Sept. 30 were $30.6 million or $0.26 per share, compared to $39.8 million or $0.34 per share for the second quarter of 2002.

"During the third quarter, we were able to increase our operational focus, having resolved substantially all of our legacy financial and legal challenges," Homestore chief executive officer Mike Long said.

Third quarter revenues totaled $55 million, down from $63.8 million a year ago. For the first time in almost two years, however, sequential quarterly growth showed and increase, officials said. Second quarter revenue was $53.9 million.

Homestore’s third quarter results included a one-time charge of $75.8 million relating to the settlement of a California State Teachers’ Retirement Systems class action lawsuit over securities violations. Three Homestore executives, who have since left the company, were implicated in the scandal.

The executives were accused of overstating the company’s 2001 revenues.

Despite a rocky past couple of years, Homestore officials remain upbeat about the future.

"Increased consumer traffic to our Websites, 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," Long said.

"While we have much turnaround, 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," he said.

—Michael Picarella