Property ManagementHomestore Trading Halts Again
Homestore.com, Inc. (Nasdaq: HOMS - news) announced today that it will
restate its financial results for the year ended December 31, 2000 and is
expected to conclude its internal accounting inquiry and file restated
financial statements by mid-March 2002.
``The restatements involve historical accounting issues that will be
corrected, but do not relate to the ongoing operations of Homestore,"" said
Mike Long, Homestore"s Chief Executive Officer. ``We are intensely focused on
serving our customers. The company has sufficient financial resources to meet
our customer commitments and to fund the growth of our business.""
The company stated that it expects its cash flow from operations to be
positive for the full year 2002 and that it had cash and cash equivalents
available to fund operations of approximately $48 million at December 31, 2001,
in addition to restricted cash of approximately $100 million.
The company previously announced that it intends to restate its quarterly
financial statements for the quarters ended March 31, June 30 and September 30,
2001. Accordingly, investors should not rely on the company"s previously filed
reports on Forms 10-Q for those quarters, the previously filed report on Form
10-K for the year ended December 31, 2000, or the financial statements
contained therein. The restatements are a result of the ongoing inquiry being
conducted by the Audit Committee of the company"s Board of Directors into the
company"s historical accounting practices.
The NASDAQ has suspended trading of Homestore shares for the second time shortly after the opening bell this morning. The halts are due to T1, and T12 codes which
indicate that Homestore has material news pending, and additional information requested
by the NASDAQ is also pending.