Bankrupt yellow pages publisher R.H. Donnelley continues to face a declining advertising market.

The Cary company announced last week that its revenue in the third quarter fell 18 percent to $534 million. Ad sales, an indicator of future revenue, fell 21 percent. Earnings before interest, taxes, depreciation and amortization -- a common measure of profitability for companies with big debt -- declined 21 percent from a year ago.

"The local ad sales market environment remained difficult in the third quarter," CEO David Swanson said in a prepared statement.

Donnelley is restructuring its business after filing for bankruptcy in May as a result of weakening revenue and debt totaling more than $9 billion. It expects to emerge from bankruptcy in January.

Donnelley publishes directories in 28 states and relies heavily on ad sales to businesses that have cut spending during the recession.

Cornerstone aims higher

CARY Cornerstone Therapeutics upped its revenue projections for the year from $95 million to $104 million.

The increase takes into account two new products recently acquired by the Cary-based pharmaceutical company: the antibiotic Factive and Curosurf, which is used to treat a lung ailment that afflicts premature infants.

"We are excited about the potential these products have in the hands of our sales force, and expect them to be strong long-term contributors to our success," CEO Craig Collard said in a prepared statement.

Cornerstone also announced that it posted a loss of $538,000, or three cents a share, in the third quarter.

Cornerstone was created last year when Cary's Cornerstone BioPharma acquired a Boston biotechnology company, Critical Therapeutics.

From News & Observer and Cary News staff reports