Industry News

Legal expenses contribute to Homestore’s Q4 loss

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Homestore Inc. a company that operates and other real estate search Web sites, announced a net loss of $4.6 million in fourth-quarter 2005, representing in a drop of 3 cents per share. That compares to net income of $6 million, or 4 cents per share, in fourth-quarter 2004. The fourth-quarter loss reflects expenses of $5.9 million related to an agreement to provide legal costs for a former company officer and a $1.8 million litigation settlement expense. Total revenue for fourth-quarter 2005, which ended Dec. 31, was $66.6 million, compared to $54.3 million in fourth-quarter 2004. Revenue for the full year 2005 was $252.6 million, compared to $216.9 million for the full year 2004, Homestore officials reported. Homestore's stock dropped 17 cents (2.76 percent) Thursday to $5.98 at the close of the market. Last week, Homestore officials announced a series of company changes, included a re-branding initiative that will change the company name from Homestore to Move Inc. and re...