The latest result came on the basis of quarterly revenues of $1.1 billion. That number itself was down nearly 30% from a year earlier, when the revenue total came in at $1.6 billion.
"We are frustrated that the housing market has continued to slip further in many locations, in terms of both sales pace and prices," Ara Hovnanian, the company's president and CEO told analysts during yesterday's conference call. "The housing market weakened in the latter part of the quarter, and the slower conditions have continued into May.
"We believe that much of this decline was a reaction to recent problems in the sub-prime mortgage market," Hovnanian told analysts. "While we have felt the sub-prime impact directly in the form of fewer potential homebuyers qualifying for a mortgage, the more significant impact has been indirectly through a further pull-back in homebuyers' psychology toward making a purchase.
"Given the increased uncertainty of market conditions, we have discontinued offering earnings guidance and we have increased our focus on improving our balance sheet and generating positive cash flow," he said, predicting that the company would show a profit in Q4 of 2007 and in 2008.
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