Webfirm FY11 loss grows to $10.3m

Internet advertising company Webfirm (ASX:WFM) has revealed its FY11 loss more than doubled to $10.3 million, and announced the departure of its CEO.

The loss for the year compares to a net loss of $4.2 million in FY10. Revenue also fell 2.6% to $5.4 million.

Webfirm's FY11 earnings had been impaired by a decision to write down the entire $2.5 million value of the goodwill of its Webfirm division. The writedown taken due to the company's move to exit the website development market and restructure around search and marketing.

The lower sales that result from the restructuring should be compensated for by the reduced cost overheads, Webfirm said in a market update, which would allow the business to become profitable from next year.

Webfirm's new core focus, its Adslot advertising sales automation platform, meanwhile generated just $900,000 in revenue for FY11. But the company expects revenue to pick up as current clients integrate the platform more deeply into their operations.

The company on Tuesday also announced the immediate resignation of CEO David Burden. Burden, who has been at the helm for the past four years, has stepped down for health reasons.

Executive director Andrew Barlow will take over as acting CEO until a permanent replacement can be found.

Webfirm is also considering finding a new buyer for its AdFeed Engine search syndication assets - which it had first arranged to sell in September following the decision to focus on AdSlot development.

The buyer decided to terminate the sale agreement earlier this month, Webfirm said. It is entitled to keep all payments from the aborted sale it has received to date.

WFM shares fell 2.9% on Tuesday to $0.067.