Welcome!

News Feed Item

Phorm Corporation Limited: Interim Results for the Six Months Ended 30 June 2014

SINGAPORE -- (Marketwired) -- 08/22/14 -- Phorm Corporation Limited (AIM: PHRM)

Phorm Corporation Limited
("Phorm" or the "Company")
Interim Results for the six months ended 30 June 2014

Phorm (AIM: PHRM), a leading internet personalisation technology company, today announces its unaudited interim results for the six months ended 30 June 2014.

Highlights:

  • Gross revenue $0.5m (2013: $0.03m)

  • Operating Losses $22.8m (2013: $24.3m)

  • Losses after taxation $23.0m (2013: $24.8m)

  • Loss per share was $0.04 (2013: $0.18)

  • During the first 6 months of the year, average monthly cash burn excluding financing activity was $3.6m (2013: $2.6m)

For further information please contact:

Phorm Corporation Limited
Andy Croxson (analysts and investors)                   +44 (0) 203 397 6001

UK Investors
----------------------------------------------------------------------------
Mirabaud Securities LLP (Broker)                        +44 20 7321 2508
----------------------------------------------------------------------------
Jason Woollard
Peter Krens

Strand Hanson Limited (Nominated Adviser)               +44 20 7409 3494
James Harris
Matthew Chandler
James Dance

US Investors
----------------------------------------------------------------------------
Lippert/Heilshorn and Associates (Investor Relations)   +1 212 838 3777
----------------------------------------------------------------------------
John Heilshorn

Chairman and Chief Executive Officer's Statement

I am pleased to present the group's unaudited interim results for the six month period to 30 June 2014. The unaudited consolidated results show that the group's financial loss narrowed in the six months ended 30 June 2014 compared to the equivalent period in 2013. This reflects the fact that Phorm is now entering the revenue growth phase of its business.

Phorm is now in the fortunate position of having set the foundations for achieving substantial growth. As set out in the Company's previous financial statements, revenue growth is a function of the interaction between deployed internet service provider ("ISP") users, partnerships which bring us inventory in the form of advertising requests, and advertising campaigns sold and successfully delivered. Accordingly, users, advertising requests and advertising campaigns are the fundamental drivers of revenue.

Users

The Company's technology is currently deployed with 10 ISPs worldwide, compared to only 1 ISP a year ago. We therefore have a substantially greater number of users than this point last year. In late June 2014, we announced that peak daily unique users had grown from approximately 0.8m to 37.8m and this figure is currently in excess of 40m.

Advertising requests
The access to inventory, which we currently enjoy, grew from 22.3bn requests in H2 2013 to 67.3bn by the end of H1 2014 and this growth trend is continuing as more publishers join Phorm's network.

Advertising campaigns

The number of advertising impressions served has similarly increased, from approximately 0.8bn impressions in H2 2013 to 2.6bn by the end of H1 2014. Our advertising campaign pipeline is continuing to strengthen and the total value of the opportunity pipeline (defined as specific campaign opportunities that are currently being discussed with advertising and agency partners) has grown to over $2m, which demonstrates advertiser confidence in our proposition and the performance of our system.

As we continue to bring these campaigns online, the imperative is to ensure that the performance, that we are able to secure for advertisers, matches or exceeds the groundbreaking performance levels which we achieved in Turkey as announced to the market in late September 2013. Achieving sufficient user numbers, to run multiple, large-scale commercial campaigns, remains an important goal in Turkey and it is expected that this situation will improve over time.

Our system is extremely powerful, yet complicated. In order to operate it successfully in China, which is substantially larger in scale than Turkey, we need to deliver rapidly on a number of fronts including: recruitment, sales management, advertising operations, performance management and data science.

In terms of recruitment, a key challenge in China is recruiting and training world class staff who can acquire the operational experience necessary in a very short period of time. This includes staff in advertising sales, advertising operations, technical ISP sales, network deployment and senior local management.

Sales staff need to be trained up to explain the benefits of a product which we believe is truly different from anything which the industry has so far encountered. They then need to go through the process of meeting with and educating clients on our proposition and taking them through to the order stage. We are seeing encouraging responses so far as manifested by the significant sales pipeline, which has developed in a short space of time.

Similarly, the range of options available for utilising the power of the system to reach the client's desired audience to an unprecedented degree also means that the appropriate level of staff in advertising operations needs to be recruited and trained accordingly. In addition, we have been focusing on developing a management model, which allows us to supervise operations from our operations centre and thereby upscale significantly, efficiently and effectively.

The scale at which we are now operating in China makes it critical that we measure performance in real time and optimise our performance across numerous campaigns, time zones and language barriers. We are now running both test campaigns with new customers and full commercial campaigns with advertisers, who have rebooked following positive results. As the test campaigns with new customers come to their conclusion, the extent to which we have managed their performance will dictate the propensity of advertisers to renew their custom and increase scale, making this function critical. Performance management is now a dominant focus within the group.

Looking ahead, we are developing a number of statistical techniques and software technologies, which will allow us to automate much of the performance management process. We expect some of these efforts to bear fruit within the coming months. We currently anticipate this to replace manual performance management as the most critical resource allocation within the business.

In summary, growth rates achieved so far have been very significant and we expect them to accelerate. Comparing H1 2013 to H1 2014, we have seen a 44 fold increase in peak daily unique users, a 42 fold increase in advertising requests and a 18 fold increase in revenues. Simply extrapolating those growth rates moving forward would lead us to highly respectable large scale revenues. However, we believe that, based upon what we currently have in hand and in our pipeline, rates of growth should in fact accelerate further, particularly as current test campaigns convert into full-scale commercial campaigns.

We have made good progress in the first half of 2014 and the group is now well positioned for the remainder of the year as we seek to build on our achievements to date.

Kent Ertugrul
Chairman & Chief Executive Officer
22 August 2014

Click on, or paste the following link into your web browser, to view the associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/8116P_1-2014-8-22.pdf

For further information please contact:

Phorm Corporation Limited
Andy Croxson (analysts and investors)
+44 (0) 203 397 6001

UK Investors
Mirabaud Securities LLP (Broker)
+44 20 7321 2508
Jason Woollard
Peter Krens

Strand Hanson Limited (Nominated Adviser)
+44 20 7409 3494
James Harris
Matthew Chandler
James Dance

US Investors
Lippert/Heilshorn and Associates (Investor Relations)
+1 212 838 3777
John Heilshorn

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
Artificial intelligence, machine learning, neural networks. We’re in the midst of a wave of excitement around AI such as hasn’t been seen for a few decades. But those previous periods of inflated expectations led to troughs of disappointment. Will this time be different? Most likely. Applications of AI such as predictive analytics are already decreasing costs and improving reliability of industrial machinery. Furthermore, the funding and research going into AI now comes from a wide range of com...
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists looked at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deliver...
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
SYS-CON Events announced today that Cloud Academy named "Bronze Sponsor" of 21st International Cloud Expo which will take place October 31 - November 2, 2017 at the Santa Clara Convention Center in Santa Clara, CA. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud com...
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
@DevOpsSummit at Cloud Expo taking place Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center, Santa Clara, CA, is co-located with the 21st International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is ...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
SYS-CON Events announced today that Enzu will exhibit at SYS-CON's 21st Int\ernational Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to focus on the core of their ...
"We are a monitoring company. We work with Salesforce, BBC, and quite a few other big logos. We basically provide monitoring for them, structure for their cloud services and we fit into the DevOps world" explained David Gildeh, Co-founder and CEO of Outlyer, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA
In 2014, Amazon announced a new form of compute called Lambda. We didn't know it at the time, but this represented a fundamental shift in what we expect from cloud computing. Now, all of the major cloud computing vendors want to take part in this disruptive technology. In his session at 20th Cloud Expo, Doug Vanderweide, an instructor at Linux Academy, discussed why major players like AWS, Microsoft Azure, IBM Bluemix, and Google Cloud Platform are all trying to sidestep VMs and containers wit...
SYS-CON Events announced today that GrapeUp, the leading provider of rapid product development at the speed of business, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market acr...