William Lyon Homes narrowed its losses in its third quarter, reporting a net loss of $41 million compared to $60 million in the same quarter last year.

Impairments of nearly $22 million impacted the company's bottom line, compared to $59 million in 2007. The company also logged $854,000 in costs related to abandoning lot acquisition deals and pre-acquisition costs.

Land sales helped boost the company's $102.2 million in operating revenue, which was down 44% from $182.2 million in the third quarter of last year. Lyon booked $7.9 million in cash by selling land at a loss of $679,000.

The Newport Beach, Calif.-based company closed 230 homes in the quarter, down 45% year-over-year. Margins took a big hit, falling to 5.4% from 12.3% a year ago. The company did not report average sales price or detail incentives used to make sales.

There were 264 net new orders, down 22% from 337 in 3Q2007. Backlog of homes sold and not closed sat at 480, down 33% from 717 in the previous year.