KB Home shares dropped on Friday after the company reported a loss that was steeper than analysts had forecast.

The Los Angeles homebuilder reported a net loss of $30.7 million (-40 cents a share) for the quarter ended May 31, compared with a loss of $83.6 million (-$1.03) a year earlier. The year-ago quarter was affected by $49.5 million in charges. Revenue was down 3 percent to $374 million.

Analysts surveyed by Thomson Reuters on average expected a per-share net loss of 30 cents on revenue of revenue of $373 million.

The company said the value of its order backlog shrank 18 percent to $648 million and company-wide orders declined 23 percent from year-ago figures but were up from the fiscal first quarter ended February.

“While our net orders were down for the quarter compared to a year ago due to fewer active communities, general economic weakness, and the expiration of the federal homebuyer tax credit, our net orders were up sequentially from this year’s first quarter and were solid on a per-community basis,” Chief Executive Jeffrey Mezger said in a statement. “We believe this bodes well for our ability to generate future revenue growth as we expand our community count.”

Shares closed down $1.10, or 9 percent, to $11.18 on the New York Stock Exchange.