When Copley Press announced last week it was putting itself up for sale, some analysts thought a logical buyer would be Dallas-based A.H. Belo. The company owns the Dallas Morning News and the Riverside Press-Enterprise, among other newspaper assets. Analysts thought a combination of San Diego and Riverside could create some savings. But today (July 28), Belo reported that it lost $3.2 million in its second quarter, compared with a profit of $12.3 million in the same quarter of the previous year. For the first half, Belo was $11.9 million in the red, compared with a profit of $2.9 million in the same period a year earlier. Advertising revenue in the Press-Enterprise plunged 25 percent in the second quarter, after having dropped 26 percent in the first quarter. The company intends to slash 500 jobs through voluntary severance offers, but if employees don't go voluntarily, there will be layoffs. That strategy is similar to Copley's recent Christmas massacre, in which it warned that if enough people didn't come forward, the company would wield the axe. Subsequently, it did. Belo has already laid off 170 this year. Significantly, Belo said in a statement that it intended to expand in the Internet business, as well as other electronic ventures.The tone of the company's statement did not suggest it is in the market for another metro daily newspaper. In February, A.H. Belo was spun off from Belo Corp., which owns TV stations. This morning, A.H. Belo stock is down 5.16 percent to $6.07.