Behavioural ad targeting company Phorm has reported another large operating loss, with revenues for 2011 not taking off as expected, but says it believes that ‘it will become increasingly clear to investors that the long wait for revenues will have been worthwhile.’

Nine months ago Phorm had cumulative losses to date of an alarming $150.9 million, and reported that it was continuing to burn cash at the rate of more than $2m a month. However it also said it had seen promising results from operations in Brazil and early trials in Romania, and Chairman and CEO Kent Ertugrul (pictured) spoke of ‘near term profitability’ for the Romanian operation.

The company now says that although it did start generating revenue in 2011, revenues - a mere $50k - were ‘significantly lower than original expectations’ with slow growth due largely to ‘changes to and challenges within the ISP networks in Brazil.’ Operating losses for the year were $30.5m - versus $27.9m in 2010, although excluding non-cash items the figure fell, from $26.0m in 2010 to $24.2m last year.

The company says proceeds from its equity fundraising in the Q4 2011 allowed it to repay all loan notes in full, making it ‘debt-free’. It also reports a conditional agreement with China City Investments Limited for a £20m equity investment into Phorm China, valuing the latter alone at £100m (post money) - completion is expected at the end of this month.

Erturgrul says the company needs further funds given ‘current uncertainty with respect to the scale and speed of the revenues arising from the current deployment’ but is ‘actively engaged in further funding discussions’. He adds in conclusion: ‘we expect significant additional news flow during the second half of this year and believe that it will become increasingly clear to investors that the long wait for revenues will have been worthwhile.’

Web site: www.phorm.com .

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