Market Leader, the online real estate company formerly known as HouseValues, reported a sharp drop in revenue last year as the company suffered from the slump in the housing market. The Kirkland company posted revenue of $38.4 million, down from $59.8 million in 2007. Market Leader''s net loss grew slightly to $13.1 million for the year.

"In a year that saw the lowest existing U.S. home sales in the Company's history, Market Leader generated positive cash flow from operations while making significant progress on its strategic objectives," said CEO Ian Morris.

The company's revenue also fell on a quarter-to-quarter basis, with Market Leader posting $7.8 million in revenue for the fourth quarter. "New customer sales declined in the fourth quarter amid the lowest existing home sales in the Company's history and prospects' concerns about the economy," the company wrote. Market Leader's tools are designed to help real estate agents generate propsects and sales leads. 

Despite the losses and the slumping revenue, the company believes it is in a fairly strong position with $58.6 million in cash, cash equivalents and short term investments. Interestingly, Google finance shows the company's market value at $39 million.