Homestore to Restate 2000 Results as WellTroubled Homestore Inc. said it will restate its financial results for 2000 and that it expects to file new financial statements by mid-March.
Homestore, Westlake Village, CA, in January said it overstated advertising revenue from January to September 2001 by $54 million to $95 million, according to preliminary results of an internal accounting audit.
At that time, it said that it would restate its earnings for the first nine months of the year and that it might have to restate its earnings for 2000 as well.
"The restatements involve historical accounting issues that will be corrected, but do not relate to the ongoing operations of Homestore," CEO Michael Long said in yesterday's statement.
Earlier this month, Homestore said it would cut 300 jobs in the first quarter of this year and that it sold its eNeighborhoods business unit to an unidentified buyer.
Last month, Homestore said it fired or accepted resignations from seven employees, including three who had been placed on administrative leave, as a result of the accounting inquiry, which began in December.
Long was named CEO Jan. 7 to replace co-founder, chairman and CEO Stuart Wolff, who resigned to "pursue a new technology venture," the company said. Long previously was CEO of Healtheon Corp. and served as chairman of WebMD Inc. after the two companies merged.