Industry News

ZipRealty announces $4.8 million net loss in Q3

Company may enter as many as four new markets in 2008

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Real estate brokerage company ZipRealty Inc. (NASDAQ: ZIPR) today reported a net loss of $4.8 million in the third quarter, which amounts to a loss of 21 cents per share. Wall Street analysts had anticipated a net loss of 10 cents per share for the quarter, Thompson Financial Network reported. ZipRealty's stock hit an all-time low this month, closing at $5.45 per share on Nov. 2. The company went public in November 2004. The quarterly loss included a one-time charge of $3.55 million that relates to the proposed settlement of a lawsuit that alleges employment-related violations. Specifically, the lawsuit challenges a "customer acquisition offset" assessed by ZipRealty on unproductive agents and company policies "under which commissions are not earned unless a transaction closes while an agent is still employed," according to court documents. The lawsuit was filed on May 4 in U.S. District Court for the Central District of California. For the full year, the company expects a ...