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VirnetX Holding Corporation (VHC)

  • Fri, Feb. 27, 2:59 PM
    • Today's notable tech gainers include IP licensing firm VirnetX (VHC +8.1%), ultracapacitor maker Maxwell (MXWL +4.7%), local services marketplace Angie's List (ANGI +5.9%), voice processor developer Audience (ADNC +5.4%), Ethernet/Wi-Fi hardware maker Extreme Networks (EXTR +3.5%), Chinese polysilicon vendor Daqo (DQ +8.3%), Chinese mobile game published Sky-mobi (MOBI +9.8%), professional video hardware/software maker Avid (AVID +5.2%), and optical component vendors NeoPhotonics (NPTN +11%) and Oclaro (OCLR +5.2%).
    • Notable decliners include cloud HR/financials software leader Workday (WDAY -3.5%), cloud IT service desk software leader ServiceNow (NOW -3.7%), industrial laser maker IPG Photonics (IPGP -3.1%), FPGA/mobile sensor hub maker QuickLogic (QUIK -4.5%), and NAND controller/4G transceiver vendor Silicon Motion (SIMO -4%). The Nasdaq is down 0.5%.
    • Initially up post-earnings, Workday is now down 9% since beating FQ4 revenue estimates and offering in-line FY16 revenue guidance on Wednesday afternoon. Heavily-shorted VirnetX is up 33% since announcing on Feb. 18 the USPTO had denied five Apple patent review petitions. Maxwell (also heavily shorted) is up 17% since an insider buy was disclosed a week ago. Sky-mobi is up 20% since Rosenblatt Securities provided bullish coverage yesterday.
    • Previously covered: Chinese Web/mobile stocks, SanDisk, Autobytel, DigitalGlobe, GoPro, Immersion, MoSys, Resonant, Infoblox, Aruba, UniPixel, Autodesk, Universal Display, TubeMogul, Nimble Storage
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  • Wed, Feb. 25, 1:12 PM
    • VirnetX (VHC +9.1%) has jumped to its highest levels since crashing in September on account of a federal appeals court's ruling on the company's infringement suit against Apple. 2.4M shares have been traded today, well above a 3-month daily average of 559K.
    • VirnetX took off last week after the USPTO denied five Apple inter partes review petitions for VirnetX patent claims. Short-covering is likely providing fuel for the rally - 14.4M shares (33% of the float) was shorted as of Jan. 30.
  • Thu, Feb. 19, 2:58 PM
    • Today's notable tech gainers include fiber equipment provider Zhone (ZHNE +10.6%), IP licensing firm VirnetX (VHC +7%), healthcare software provider Allscripts (MDRX +4.8%), app development software provider Pegasystems (PEGA +6%), software outsourcing firm EPAM (EPAM +5.6%), security software/service provider Imperva (IMPV +5.3%), and cloud HR software provider Paylocity (PCTY +4.5%).
    • Notable decliners include Chinese search/app store/security app provider Qihoo (QIHU -5.2%), Web hosting/cloud infrastructure provider Rackspace (RAX -3.9%), LED equipment maker Veeco (VECO -4.9%), and analog/mixed-signal chipmaker MagnaChip (MX -5%). The Nasdaq is up 0.4%.
    • VirnetX is adding to the Wednesday gains seen after Apple patent review petitions were denied, and Qihoo is adding to the losses seen following a Jefferies downgrade.
    • Rackspace and Veeco are reversing the gains they saw yesterday after posting their Q4 reports (I, II), and then some. MagnaChip is now down 58% since posting its Q1-Q3 results a week ago.
    • Previously covered: SolarCity, Facebook, Castlight, Applied Materials, DragonWave, Nimble Storage, AVG, Ascent Solar, Netlist
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  • Wed, Feb. 18, 2:36 PM
    • The USPTO has denied five Apple petitions for inter partes reviews (IPRs) of claims in three VirnetX (NYSEMKT:VHC) patents. It has also dismissed an Apple request to join IPRs previously filed by Microsoft, noting they've been terminated (following Microsoft's licensing deal with VirnetX).
    • The board handling the petitions denied them on account of failing to be filed in time. VirnetX notes the patents in question are part of its ongoing infringement suit against Apple (prior coverage).
  • Sun, Feb. 8, 3:32 PM
    • Rep. Bob Goodlatte (R-VA) has introduced a new version of the Innovation Act, a bill aiming to make it tougher for IP licensing firms (often referred to by critics as patent trolls) to pursue infringement suits. The original Innovation Act was shelved 9 months ago by Sen. Pat Leahy (D-VT), reportedly at the behest of then-Senate Majority Leader Harry Reid (D-NV). With the Republicans now controlling the Senate, the new version might have better odds.
    • Among other things, the bill: 1) Requires plaintiffs to disclose a patent's owner prior to litigation, and explain why they're suing a company in proceedings. 2) Requires courts to make a decision on a patent's validity early in the litigation process. 3) Requires judges to award attorney's fees to defendants for frivolous claims. 4) Requires the Judicial Conference to create rules lowering the costs of the discovery process during litigation, so that "patent trolls cannot use the high costs of discovery to extort money." 5) Creates "a voluntary process for small businesses to postpone expensive patent lawsuits."
    • Not surprisingly, Goodlatte's bill has been praised by an IT/telecom trade group - "We finally have a bill that would create a bit of gridlock for patent trolls’ extortion schemes." And it has been harshly criticized by a trade group representing IP licensors. "[T]he bill being introduced is over broad and does not take into account the many developments that have taken place over the past year in the patent landscape..."
    • As it is, the last two years have seen the White House issue executive actions and legislative proposals aimed at curtailing patent law abuses, the Supreme Court set limits on software patents (while upholding software's patentability), and lower federal courts issue a string of adverse rulings against various firms pursuing infringement claims.
  • Tue, Jan. 27, 4:02 PM
    • The USPTO has granted a joint motion from VirnetX (NYSEMKT:VHC) and Microsoft to terminate an inter partes review (stemming from Microsoft petitions) of claims in four VirnetX patents.
    • The joint motion was a by-product of the companies' December licensing agreement, under which Microsoft agreed to pay $23M to settle its patent dispute with VirnetX and expand its license.
    • VirnetX rallied today, albeit on modest volume (285K shares vs. a 3-month daily average of 710K). Shares +21% since the Microsoft deal was announced.
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  • Dec. 19, 2014, 1:39 PM
    • VirnetX (NYSEMKT:VHC) and Microsoft (NASDAQ:MSFT) have ended their legal battle.
    • Microsoft has "agreed to pay $23 million to VirnetX to settle the patent dispute and expand Microsoft's license," and both parties have agreed to end current litigation and patent review proceedings between them. All other deal terms are undisclosed.
    • Back in 2010, Microsoft agreed to pay VirnetX $200M in a VPN patent settlement. VirnetX's shares remain halted for now.
    • Update (1:45PM ET): Shares have resumed trading, and are up 20.7%.
  • Dec. 19, 2014, 1:10 PM
    • VirnetX (NYSEMKT:VHC) was up 17.6% on the day prior to the halt, with very strong volume.
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  • Dec. 19, 2014, 12:45 PM
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  • Dec. 17, 2014, 11:53 AM
    • After opening nearly unchanged, VirnetX (NYSEMKT:VHC) has gradually shot higher. 334K shares have changed hands vs. a 3-month daily average of 411K.
    • Yesterday, VirnetX stated the federal appeals court that in September reversed infringement rulings for two patent claims asserted against Apple had denied the company's request for an en banc review of the decision. However, the company added it's pleased "the court will issue its final decision confirming the validity of our patent claims as well as Apple's infringement with respect to VPN On-Demand."
    • Shares closed up 1.2% yesterday following the announcement.
  • Dec. 15, 2014, 1:22 PM
    • Vringo was denied a request for an en banc review of the adverse appeals court ruling its received in August for its infringement suit against Google. Unwired Planet received an unfavorable claim construction ruling for its own suit against Google.
    • Shares of both of the aforementioned companies are down over 30%. Fellow IP licensing firms VirnetX (VHC -8%) and Document Security (DSS -6.8%) are following them lower, albeit on modest volume.
    • VHC and DSS have received adverse rulings of their own this year (I, II), as courts take a tougher stance towards IP firms following the Supreme Court's June software patent ruling.
  • Dec. 4, 2014, 11:15 AM
    • VirnetX (VHC +5.8%) has opened up a beta program for its Gabriel secure IP connection platform and collaboration suite to the general public. The company plans to officially launch Gabriel in 1H15.
    • VirnetX, which has been granted a slew of patents related to Gabriel, asserts the solution will offer companies better control over confidential data than other secure IP-based communications platforms.
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  • Nov. 14, 2014, 2:47 PM
    • VirnetX (VHC +2%) chairman/CEO Kendall Larsen discloses he bought 3,850 shares on Wednesday at $5.12.
    • Larsen's purchase came with VirnetX down over 65% from where it traded prior to September's Apple ruling.
  • Oct. 17, 2014, 2:24 PM
    • The White House has nominated Michelle Lee, once Google's lead patent counsel, to head the USPTO. Lee is currently the USPTO's deputy director.
    • Google, like several other tech giants, has been a strong proponent of overhauling the U.S. patent system, with an eye towards limiting software patents and making it easier for defendants to recover legal fees from perceived patent trolls in the event that they win.
    • In June 2013, the White House unveiled a slew of executive actions and legal actions meant to curtail patent system abuses. This year, the Supreme Court upheld the patentability of software concepts, but also set limits. That ruling has been followed by a string of adverse decisions levied by lower federal courts against companies pursuing infringement claims.
    • IP licensing firms: ACTG, VHC, WILN, VRNG, CRDS, DSS, FNJN, MARA
  • Oct. 17, 2014, 12:15 PM
    • Much as Vringo just did for the unfavorable federal appeals court ruling it received for its Google suit, VirnetX (VHC -2.3%) has filed to request an en banc review of the adverse September appeals court ruling it received for its Apple suit.
    • VirnetX argues the September ruling is "contrary to the patent statute and Supreme Court precedent," and is asking the court to "rehear its decision with respect to damages and affirm the district court's damages award against Apple in full."
    • It's also asking for the court to "reinstate the jury's award that Apple infringed the '504 and '211 patents on the basis that the district court correctly construed the claim term 'secure communication link'."
    • Shares are down 68% from where they traded the day before news of the Apple ruling broke.
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  • Oct. 8, 2014, 5:38 PM
    • Top gainers, as of 5:15 p.m.: RT +18.8%. GSAT +6.6%. VHC +5.6%. SALT +4.9%. ACAD +4.6%.
    • Top losers, as of 5:15 p.m.: KFX -20.6%. GPS -8.1%. VNET -6.2%. WFT -5.3%. TWI -4.3%.
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Company Description
VirnetX Holding Corp is an Internet security software and technology company with patented technology for secure communications. The Company's software and technology solutions, include its Secure Domain Name Registry and GABRIEL Connection Technology.