As previously announced, the company's Housing Group generated profits in the second quarter, its balance sheet is sound, and it have more than $40 million available on its credit lines. However, given the roiling of the housing markets due to the sub-prime mortgage crisis, and other uncertainties creating challenges in both of the company's business segments, it is prudent to conserve cash and insure that the company maintain comfortably adequate resources to fund the product development and marketing initiatives currently underway which are critical to generating earnings and providing acceptable returns to its shareholders in the future.
CEO Lavers said out of an abundance of caution, the Board agreed with senior management's recommendation to take this action. Lavers also said once the company returns to generating profit, it would reconsider paying a dividend.
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