Industry News

Homestore profits not on the horizon

Realtor group will decide model changes

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

Homestore likely will not achieve profitability this year, as some observers previously anticipated. The company narrowed its second-quarter loss to $4.3 million, or 3 cents a share, from $91.7 million, or 78 cents a share a year ago. The second-quarter loss compares with a loss of $5.1 million, or 4 cents a share in the first quarter this year. Although Homestore today reported its second year-over-year quarterly increase in revenue, CEO Mike Long said the company doesn't expect profits this year. "It is unlikely that we will be able to reach that goal," Long said in an investor conference call this afternoon. Homestore's goal of profitability has been set back by litigation expenses as well as expenses related to it's compliance with Sarbanes Oxley. Homestore provides marketing exposure and technology products to the real estate industry. The company also operates, the official Web site of the National Association of Realtors. Investors again questioned whether the com...