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Phorm Slashes First Half Loss
Behavioural ad targeting company Phorm has reported a $15m pre-tax loss for the first half of the year; down from $25.6m in the same period last year. Separately, Chief Technology Officer Stratis Scleparis has announced he is leaving the firm.
 During the period, the firm completed an operational restructuring programme, which has reduced its expenses to $1.8m per month, compared with $3.1m in the first six months of 2008. As a result, for the first half of the year, sales and administrative expenses fell 48% to $11.2m.
Phorm drew criticism in 2006 when it conducting secret trials of its Webwise software with telecoms giant BT. BT denied the trials breached privacy laws claiming that users' personal data was anonymised.
Since then, in the UK BT, Carphone Warehouse and Nationwide Building Society have all pulled out of trials of the software.
In addition, the European Commission has launched legal action against the UK Government over its alleged failure to force the firm to comply with EU data protection and privacy rules.
Earlier this year, Phorm sold £24.2m-worth of shares to institutional investors, which it is using to continue the implementation of its service in the UK and Korean markets.
CEO Kent Ertugrul said that his firm's technology has been extensively tested by a variety of partners in different markets, and the Board believes that Phorm is making good progress towards commercial deployment in a 'major market'.
'Consequently, we remain confident about the company's future and our ability to deliver substantial shareholder value,' he added.
Former BT Retail CTO Scleparis, who took part in earlier Webwise trials, resigned earlier this month to 'pursue other interests'. His responsibilities will be taken on by Marc Burgess, the firm's SVP of Technology.
Web site: www.phorm.com .
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