HomeSeekers.com Inc. (OTC BB:HMSK), a leading provider of online residential real estate listing and related information, Wednesday announced that revenue for the second quarter of fiscal 1999 ended Dec. 31, 1998, increased 147 percent to a record $1,068,000.
This compares with revenue of $433,000 for the second quarter of fiscal 1998, and to $375,000 for
the first quarter of fiscal 1999. The net loss for the period was $587,000, or 8 cents per share,
compared with a net loss of $663,000, or 12 cents per share, a year earlier.
"This growth understates the full extent of the surge in business activity at HomeSeekers," said
Chief Executive Officer Greg Johnson. "We receive payment in advance for our realtor
Web-site-hosting services and often receive payment in advance for our proprietary Vertical
Application Browser for real estate professionals, Realty 2000(R) Net `98.
"Although payment is received in advance, the company recognizes revenue in accordance with
Generally Accepted Accounting Principles over the life of the contract. Consequently, reported
revenue plus the change in deferred revenue on our balance sheet can assist to measure our total
business activity.
"For the first quarter of fiscal 1999, this measure of `total business activity' (defined as revenue plus
the change in deferred revenue on the balance sheet) amounted to $439,000. During the second
quarter of fiscal 1999, total business activity was $2,990,000," he explained.
For the six months ended Dec. 31, 1998, revenue increased 142 percent to $1,442,000 from $597,000
for the first half of fiscal 1998. The net loss was $1,550,000, or 22 cents per share, compared with a
net loss of $1,284,000, or 26 cents per share, for the same period a year earlier.
In January 1999, HomeSeekers closed on a total of $11.9 million in a private placement of
unregistered common stock to institutional and other accredited investors. "We have built this
business and achieved rapid growth with very little money. Now for the first time we have the funds
we need to implement our growth plan even more aggressively," Johnson added.
"In recent months, HomeSeekers has entered into contracts to provide real estate listing aggregation
services for Microsoft's MSN HomeAdvisor Web site; to provide virtual home tours on its Web site, www.HomeSeekers.com, using technology licensed by the company, for exclusive access to portals on our proprietary VAB to VISTA Information Solutions Inc.; and other transactions that we believe have the potential to generate significant growth.
Published: February 3, 1999
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