More importantly, between 2003 and June 2014, Phorm raised $265.2 million through share issues. This figure is taken from the cash flow statements in the relevant accounts. Taking an exchange rate of $1.58 to the pound this equates to £168 million. Since the end of June 2014, a further £21.1 million has been raised. Although the latest fundraising of £6 million was done at 8p a share, which is double the 4p a share at which £5.2 million was raised in April 2013, it is still a lower price than the other four fundraisings since last June, which range from 9p a share to 11p a share, and much lower than the 170p placing price in 2010. Go back another couple of years and the placing price was 450p. At 5.125p a share, Phorm is valued at £43.2 million, which is less than one-quarter of the money raised in fewer than thirteen years. It is also barely twice the amount of money raised in less than 12 months. Back in July 2010, when Phorm raised £2 million at 170p a share, the number of shares increased to 18.48 million. Five years later, there are 843.8 million shares in issue. This indicates the enormous dilution of long-term shareholders in the company, particularly as the cash raisings have been via placings where not all existing shareholders would have been able to participate. Given the share price performance, that is probably a good thing.
16 May '15
It is always disappointing when a company that appears to have a potentially good business cannot raise cash to keep going, but it is even more bemusing when companies which have never shown much sign of achieving success can continually tap the market for millions of pounds despite being money pits. Two examples of the latter are internet personalisation technology provider Phorm Corporation (PHRM) and digital TV technology company Motive Television (MTV). They have tapped investors for money on a regular basis, at reducing share prices, and are valued at less than the money they have raised. When it comes to pharma and cutting edge technology developers it is understandable that it can take years and years - and many ups and downs - to develop a product. At times, persuading customers to buy a product can be a long process. However, in other cases there seem to be companies which are never quite in the right place at the right time. So, even if there is demand for a product or service it never warrants the millions poured into its development. Phorm Singapore-based Phorm is beginning to grow its revenues, but from a very low base, and moving into new markets will help to accelerate growth. Customers include internet service providers, which can generate revenues from their data, while web publishers can generate more income from their advertising space. Advertisers can be provided with more cost-effective advertising opportunities. Phorm is involved in an enormous online advertising market, but revenues were still modest at $1.58 million in 2014 and that is a significant improvement on previous years. However, this is a fraction of the bloated cost base, which is being reduced, but even quadrupled revenues would barely cover R&D spending, which has been running at around $6 million-$7 million a year. This is why cash flows out of the company so rapidly. Phorm has moved into the US market so there is scope for rapid growth, but it is difficult to see the company reaching breakeven for a few years. That means that it will continue to require cash from investors. Between 2004 and 2013, Phorm generated total revenues of just over $11 million, although this includes four years with no revenues. However, total directors' remuneration over the same period was nearly $11.8 million. Phorm boss Kent Ertugrul received just over half of that, although it is difficult to be exact because in 2008 he was not the highest paid director due to a former director receiving a large pay off. Even excluding 2008, Kent Ertugrul earned $5.74 million and the 2008 payment is likely to take him over $6 million - he was paid $0.63 million in 2007 and $0.74 million in 2009.
30 Apr '15
I see #ThePhormEffect seems to be having an effect on #ThePhluidEffect Or should it be #TheEffluentEffect ? As it all goes down the pan?
28 Apr '15
is phluid media a name of phorm ?
#thePhluidEffect so with the relationship of fluidmedia.net to fideo.com and both being hosted on phorm server IP addresses i think it's think it is fair to say fideo.com = phorm.com = phluidmedia.net it is likely given the wording of the last operational update RNS that phluidmedia is phorms trading name in the US and PhluidMedia will be using phorms systems for harvesting user information etc i suspect this will bring phluid media straight into the spotlight of regulators etc due to the history of phorm , nebuad etc due to of DPI for interception of user data in ISP core networks it used to be the #ThePhormEffect now it appearss to be #thePhluidEffect
24 Apr '15
phluidmedia the likely name?
if you do a bit of digging after coming across the name of fluidmedia elsewhere phluidmedia.net redirects to phluid media.com/privacy phluidmedia.net uses the same IP in phorms US datacentre range as fideo.com 188.8.131.52 A FIDEO.COM, PHLUIDMEDIA.NET and the phluidmedia domain names all registered mid april and if you look at the contatact page it is a regus serviced office in new york :) do they have a new office cat to feed? so looks like they are part of phorm, and likely the name for the US operation this is all publically available information, just doing my own research and sharing it,
22 Apr '15
RE: Operational Update Out
Well there WAS a dead cat bounce - for approx. 1 minute!
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