RED BANK, NJ -- Hovnanian Enterprises, Inc., a leading national homebuilder, reported a net loss of $7.7 million in the third quarter on revenue of $540.6 million. Revenue decreased 1.9% compared with $551.0 million in the third quarter of fiscal 2014.
"While we are disappointed with the loss for the third quarter, it was within the guidance we gave on our second quarter conference call," stated Ara K. Hovnanian, Chairman of the Board, President and Chief Executive Officer. "During the third quarter the dollar value of our contract backlog increased 23% year-over-year, while the dollar value of our net contracts increased 20% compared to last year's third quarter, and we also had a 170 basis point sequential improvement in our quarterly gross margin. Furthermore, assuming no changes in market conditions, we are on track for solid profitability during the fourth quarter of fiscal 2015 and are well positioned for a breakout year from the perspective of deliveries and revenues which should lead to profitability in fiscal 2016, " concluded Mr. Hovnanian.