Morningstar is cutting costs.

The Chicago-based research firm's third-quarter earnings showed a small bump in revenue from the previous year. The quarterly report also showed that CEO and founder Joe Mansueto is trying to keep down costs, especially by reining in bonuses.

Morningstar reported $161 million in revenue in Q3 2012 — up less than a percent from the third quarter of 2011 — and $487 million in revenue year-to-date. Operating income for Q3 2012 was up 18 percent from the year prior, to $39.9 million.

Mansueto described Q3 as "another challenging quarter." But he noted that the firm has made some behind-the-scenes progress, including hiring a Microsoft vet to run the firm's website and starting a municipal bond research program.

He added, "We've been clamping down on expenses, and we're seeing the benefits of greater cost control in areas such as travel, hiring, and advertising. We're also taking steps to streamline and simplify our product lines and have announced several small divestitures."

Morningstar's bonuses fell $2.6 million, or over 25 percent, in the quarter.  

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