John P. Mueller: First of all we were on a fairly strong ramp up in terms of headcount that we were adding to pursue all of these strategic initiatives. It was a combination of attrition of people that normally left the company and then decisions not to hire as well that have helped us maintain the costs.
Additionally, we had some benefits in this quarter from lower bad debt expense which contributed to that decline as well. We also had a little bit higher legal expenses in Q2 related to a couple of the lawsuits that we had that were going on. That has cleared and it’s much lower now as well.

David Liu: We identified certain trends that had us look at throttling back some of our expenses even as the second quarter was coming to a close.

George Askew (Stifel Nicolaus & Company, Inc.): You talked about the variable pricing strategy for the secondary categories and you talk about going on a many more variable pricing option for primary categories. What’s the timing for the new pricing structures for primary categories?

David Liu: It will be unlikely that we’d be able to squeeze it in this year. One of the key choke points for us right now is actually the sales rep training. To get them transitioned on to a new platform will require a day or two of in person training, bringing them in to regional centers and we are loath to take them out of the selling process right now.
We have opportunities probably in the early part of the first quarter where we’ll be looking at scheduling some of this stuff. The other aspect of it is obviously making sure that this application is bullet proof and so we don’t want to launch with that and there’s probably even some SarbOx issues in making sure that the auditing process of this is complete.

William Morrison (Thinkpanmure, LLC): Have you done any kind of scenario analysis depending on which way the economy goes? Could you give us a range of outcomes from worse to best case scenario for next year on the top line?

David Liu: It’s probably too premature for us to actually give you any ranges or the outlook. We certainly have done a lot of sensitivity analysis towards what I would consider bad, worse and worst cases in terms of the potential deterioration of the economy. We are somewhat surprised with the resilience of the advertising side of it, the local has been a real pleasant surprise and even on the national front with regards to some of our categories where you would they are getting particularly hammered, we’re seeing commitments coming in to 2009 that are matching 2008 and so we’re pleased right now.
Again, we’re certainly very cautious in wanting to promote too much optimism but we do believe that we represent a category where the advertisers are realizing that they do need to be spending with us even to protect their own businesses.

William Morrison (Thinkpanmure, LLC): Could you clarify on the changes in operating expenses?

John P. Mueller: Q4 is maybe 1% to 2% up and you’re going to use Q4 for your run rate for 2009; therefore 2009 would be up 1% to 2%.

William Morrison (Thinkpanmure, LLC): Can you talk more about the pipeline? You said earlier that you got about 85% of the quarter booked at this point?

John P. Mueller: Correct.

William Morrison (Thinkpanmure, LLC): How concrete are those bookings? On the national side, people are still planning to spend in December; can they still cancel those?

John P. Mueller: On the national side they can cancel. We haven’t experienced much of that but that is definitely a risk and we review our pipeline during the week and every week. I took a look at it today and there have not been much movement in what our sales force is telling us about the feedback they’re getting. In this market, it’s day-to-day so we’re trying to keep our pulse on it as closely as we can because you just don’t know. However, we’re surprised by the resilience we’re seeing right now. We’re certainly not willing to go out on a limb and paint a picture of what we think 2009 is going to be like. We’re not going to do anything drastic until we get a little bit better visibility going forward.