Phorm cuts first-half loss, but still no revenue to report

First-half operating loss was $15m, down from $25.6m in the same period last year, as a result of restructuring measures including “reductions in headcount, salaries, professional fees and other general and administrative costs”. Gross loss, however, was up to $989,000 from $159,000.

The firm’s monthly cash burn rate fell from $3.1m in the first half of 2008 to $1.8m this year.

Phorm did not generate any revenue in the first six months – or throughout all of 2008 – but CEO Kent Ertugrul was upbeat, stating that the firm was “making good progress towards the milestone of commercial deployment in a major market, with the generation of meaningful revenues”.

Ertugrul (pictured) said that Phorm was in the “final stages” of a large scale market trail in Korea with ISP KT and was making “excellent progress” in a number of other countries. “We are particularly advanced in two markets,” he said, but did not say which ones.

Phorm reports that it is in discussions with ISPs in 15 markets, including nine of the top ten global markets. Despite losing interest from BT and Carphone Warehouse in the UK, Phorm said it was in ongoing discussions with other ISPs in the country and was “optimistic about our longer-term potential in this market”.