Homestore Swings to $3.3-Million Profit

Homestore Inc., operator of the Realtor.com website, reported a second-quarter profit of $3.3 million, or 2 cents a share, reversing a year-earlier loss. Revenue in the period ended June 30 rose 16% to $63.3 million.

The results exceeded analysts’ expectations of a 2-cent-a-share deficit, excluding extraordinary items, and Homestore shares rose 19% in after-hours trading. A year earlier, Homestore lost $4.3 million, or 3 cents.

Mike Long, chief executive of the Westlake Village company, said it was the best quarterly performance since a turnaround plan was implemented three years ago. At least 11 former Homestore executives and employees were charged in 2002 with fraudulently inflating the company’s revenue in 2000 and 2001 as the dot-com balloon began to deflate.

The second-quarter results included $4.2 million in legal expenses to defend former Homestore officers who were charged. The year-earlier results included $2.2 million in legal settlement expenses.

Homestore shares fell 3 cents to $2.56 in regular trading but rose as high as $3.05 after hours. The results were released after the markets closed.