Cyrus F. Freidheim, president of the Sun-Times Media Group told investors the company lost market share in advertising, particularly in classified ads, as advertising moved to the Internet in 2007. The company halted the erosion of its market share in the second half and introduced new sections to aggressively compete for advertising dollars in the auto and the entertainment segments.

Friedheim also told investors outsourcing customer service to a Winnipeg, Manitoba call center and distribution to the Chicago Tribune has already lowered costs and improved service. The Chicago Sun-Times, he said, will begin Audit Bureau of Circulators reporting again this month.

He also reported that while overall revenue was down about 16 percent, suburban publishing operations revenue was down just 9 percent. Cash increased $11 million due to agreements regarding tax liabilities.

Freidheim said the company was continuing to add to online products, with a new product coming on line every month. He said online is five percent of revenue, although the company did not breakout online revenue in the 2006 annual report.

However, there are additional staff reductions on the way, Freidheim noted, "two-thirds" of the targeted head counts reductions are in place, while 90 percent of cost reductions have been accomplished.

Jennifer Wallace of the Summit Street Capital LLC hedge fund asked the management team if they could break out the one-time costs from the continuing operations. She said that the company still needed to reduce non-corporate costs about 13 percent and total costs about 10 percent to breakeven. She asked management to comment on that and they agreed her figures were in the ballpark.