The latest result came on the basis of quarterly revenues of$1.1 billion. That number itself was down nearly 30% from a yearearlier, when the revenue total came in at $1.6 billion.

"We are frustrated that the housing market has continued to slipfurther in many locations, in terms of both sales pace and prices,"Ara Hovnanian, the company's president and CEO told analysts duringyesterday's conference call. "The housing market weakened in thelatter part of the quarter, and the slower conditions havecontinued into May.

"We believe that much of this decline was a reaction to recentproblems in the sub-prime mortgage market," Hovnanian toldanalysts. "While we have felt the sub-prime impact directly in theform of fewer potential homebuyers qualifying for a mortgage, themore significant impact has been indirectly through a furtherpull-back in homebuyers' psychology toward making a purchase.