The company posted a net income of $2.99m for the second fiscal quarter 2010, compared to a net loss of $109.85m for the year-ago period.

Combined print and online advertising revenue decreased 7.7 percent to $130.6m, with retail advertising down 6.4 percent, national also down 6.4 percent and classified down 10.2 percent. Operating expenses, excluding depreciation, amortization and curtailment gains, decreased 10.4 percent.

For the six months ended March 28, 2010, operating revenue totaled $395.6m, a decline of 10.6 percent compared to $442.39m for the year ago period. Net income was $30.89m, compared to a net loss of $157.48m for the year-ago period.

Combined print and online advertising revenue decreased 12.6 percent to $285m, with retail advertising down 11.4 percent, national down 11.9 percent and classified down 15.3 percent. Operating expenses, excluding depreciation, amortization and curtailment gains, decreased 14.3 percent, with compensation down 9.7 percent and newsprint and ink down 43.8 percent.

Mary Junck, chairman and CEO of Lee Enterprises, said: “Lee posted another good quarter, with steadily improving revenue trends, a 14 percent jump in online advertising sales and continued earnings growth. Aggressive new sales initiatives have driven nearly 4,700 new online accounts since November and are gaining momentum.

“The gradually brightening business environment is also helping, and earlier Easter advertising caused March to be easily the best month of the quarter. We expect our revenue performance to continue improving in a still-rough economy, and we also remain focused on careful, long-term cost control.”

Can Lee further increase net income in Q3?

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