StockMarketWire.com - Phorm, the web personalisation technology company, has announced its unaudited financial statements for the six months ended 30 June 2011 showing operating losses for the six-month period ended 30 June 2011 were $13.0m (six month period ended 30 June 2010: $15.7m).

Losses after taxation were $19.6m (2010: $15.7m). Loss per share was $1.06 (2009: $0.91).

The chairman's statement said: "During the first six months of the year, our monthly cash burn was approximately $2.1m (2010 $2.3m). At 30 June 2011 our cash balance was $8.1m (31 December 2010: $5.7m).

"Following the issuance of further secured convertible loan notes in March 2011, our balance sheet reflects short-term debt, including accrued interest of $31.3m at 30 June 2011 (31 December 2010: $9.5m).

"To date in 2011 we have seen continued advances in our Brazilian business, a launch in Romania and continued progress in business development worldwide.

In Brazil, after a considerably longer period of time than we had anticipated, we have finally seen the user base grow to a point where we could run commercial advertising campaigns, generate revenues and prove the fundamental Key Performance Indicators of our model namely user adoption, advertising pricing and publisher costs.

"The revenues in the first half of the year were modest, reflecting the nature of the test campaigns that we undertook for a range of advertisers. All of these advertisers have subsequently re-booked and the revenues are rising in line with increasing user numbers.

"The participation of websites in the Open Internet Exchange advertising exchange and the prices at which they have participated have exceeded our expectations and our forecasting assumptions.

"Advertisers have seen sufficient value in our proposition to offer pricing which to date has significantly exceeded our forecasts. We are grateful that they have been renewing campaigns in response to the demonstrated effectiveness of our advertising system."

"The Company needs to raise additional funds in the current year to continue to trade and discussions with respect to further funding are in progress. We will keep the market informed on this matter."



At 9:42am: (LON:PHRM) share price was 0p at 92.5p


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