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Move Inc. Reports Operating Results (10-Q)

May 08, 2009 | About:
10qk

Move Inc. (MOVE) filed Quarterly Report for the period ended 2009-03-31.

Homestore Inc. is a leading destination on the Internet for real estate information advertising products and services. The family of web sites consisting of homestore.com REALTOR.com HomeBuilder.com SpringStreet.com and CommercialSource.com provides the most comprehensive source of real estate listings and content on the Internet. Through the family of web sites they provide a wide variety of information and tools for consumers real estate industry professionals advertisers and providers of real estate related products and services. Move Inc. has a market cap of $310.9 million; its shares were traded at around $2.03 with and P/S ratio of 1.2.

Highlight of Business Operations:

Revenue decreased $7.1 million, or 11%, to $54.9 million for the three months ended March 31, 2009, compared to $62.0 million for the three months ended March 31, 2008. The decrease in revenue was due to decreases of $5.3 million in the Real Estate Services segment and $1.8 million in the Consumer Media segment. These changes by segment are explained in the segment information below.

Cost of revenue increased $1.2 million, or 11%, to $12.6 million for the three months ended March 31, 2009, compared to $11.4 million for the three months ended March 31, 2008. The increase was primarily due to higher product fulfillment costs of $1.4 million partially offset by $0.2 million in other cost decreases.

Sales and marketing. Sales and marketing expenses decreased $3.4 million, or 14%, to $20.7 million for the three months ended March 31, 2009, compared to $24.1 million for the three months ended March 31, 2008. The decrease was primarily due to a decrease in online distribution costs of $4.1 million, partially offset by an increase in sales compensation costs of $0.7 million.

General and administrative. General and administrative expenses increased $1.8 million, or 8%, to $24.0 million for the three months ended March 31, 2009, compared to $22.2 million for the three months ended March 31, 2008. The increase was primarily a result of a $7.3 million increase in non-cash stock based compensation primarily due to the acceleration and modification of options upon the termination of two executive officers and restricted stock awards and options granted to the new Chief Executive Officer that were immediately vested. These increases were partially offset by a decrease in personnel related costs of $3.1 million, a decrease in legal costs of $0.8 million, a decrease in rent expense of $0.4 million as a result of our restructuring efforts, a $0.4 million decrease in consulting costs and other cost decreases of $0.8 million.

Real Estate Services expenses decreased $6.2 million, or 14%, to $38.1 million for the three months ended March 31, 2009, compared to $44.3 million for the three months ended March 31, 2008. There was a $5.1 million decrease in general and administrative expenses primarily due to a $4.3 million decrease in personnel related expenses and other cost reductions of $0.8 million. The decrease in personnel related expenses included $1.3 million associated with non-cash stock based compensation decreases and $2.0 million of severance costs included in the three months ended March 31, 2008. Sales and marketing expenses decreased $1.4 million primarily due to a $2.3 million decrease in online distribution costs, partially offset by increased personnel related costs of $0.8 million and other cost increases of $0.1 million. Product and web site development costs decreased $0.4 million due to reduced outside consulting costs. These decreases were partially offset by an increase in cost of revenue of $0.8 million primarily due to an increase in product fulfillment costs associated with improvements to the Featured CommunityTM products.

Consumer Media expenses decreased $2.1 million, or 31%, to $4.7 million for the three months ended March 31, 2009, compared to $6.8 million for the three months ended March 31, 2008. The decrease was primarily due to a $1.6 million decrease

Read the The complete ReportMOVE is in the portfolios of Ron Baron of Baron Funds.

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