Phorm remains bullish despite losses

Phorm continues to conduct trials with several ISPs globally

Controversial behavioural targeting firm Phorm is putting a brave face on pre-tax losses of $15m (£9.3m) announced today, and news that the company's chief technology officer and head of corporate communications are both leaving.

The firm, whose web tracking technology was famously trialled in secret by BT before being dropped after widespread privacy concerns were raised, posted half yearly losses for the six months ending 30 June of $15m, with sales and admin expenses alone totalling $11m.

However, the figures were an improvement on the same period last year, when Phorm posted pre-tax losses of $24.7m, and the firm said it was making " substantial operational progress" towards deploying the technology in a major market.

Korean ISP KT is currently running a full commercial trial in the country, with a decision expected about roll-out in Q4 2009, for example.

“With a strong balance sheet, a talented and committed management team and technology that has been extensively tested by a variety of partners in different markets, the board believes that Phorm is making good progress towards the milestone of commercial deployment in a major market, with the generation of meaningful revenues," said chief executive Kent Ertugrul.

However, the firm will be without the services of chief technical officer (CTO) Stratis Scleparis, the ex-BT Retail CTO who was a key figure in developing Phorm's behavioural targeting technology.

Director of corporate communications David Sawday has also left, and the firm has shelved its Stopphoulplay.com web site, which was originally launched a few months ago to "expose the smears" perpetuated by so-called "privacy pirates".