Fri, May 22, 2:28 PM
- Though no major news has arrived, VirnetX (VHC -5.5%) has gradually sold off this week to its lowest levels since January. Volume has generally been moderate.
- The security/communications IP licensing firm is 11 days removed from seeing an unfavorable USPTO ruling and announcing it has hired IP monetization firm IPVALUE, and 8 days removed from launching its Gabriel secure collaboration suite.
Thu, May 14, 11:09 AM
- VirnetX (NYSEMKT:VHC) states its anticipated Gabriel secure collaboration suite will be available for download on May 19. Messaging, VoIP, video call, and file-sharing/syncing apps are included.
- The apps, which enter a very competitive messaging/communications app space, are launching on Windows, Android, Mac OS, and Linux (other platforms will be supported later). Downloads will be free; VirnetX plans to monetize the apps via in-app purchases.
- A Gabriel public beta was launched in December. SA author Tom Shaughnessy provided upbeat comments about Gabriel's end-to-end security features last May.
- Shares are higher amid a 1% gain for the Nasdaq. They sold off on Monday following an adverse USPTO ruling, but more than recovered their losses on Tuesday.
Tue, May 12, 1:52 PM
- After opening lower, VirnetX (NYSEMKT:VHC) has recovered a large chunk of its Monday afternoon losses. Yesterday's decline came after the USPTO's Patent Trial & Appeal Board (PTAT) ruled 26 of the 30 claims in VirnetX's '697 patent (one of the VPN patents asserted against Apple - USPTO filing) are unpatentable.
- 4 months ago, the USPTO terminated an inter partes review of VirnetX patent claims that was filed by Microsoft. Both companies requested the termination following VirnetX's settlement with the software giant.
- Yesterday: VirnetX hires IP monetization firm; shares drop 6.4%
Mon, May 11, 4:04 PM
- VirnetX (NYSEMKT:VHC) has hired IPVALUE Management, an IP transactional/advisory services firm, to "assist it in commercializing its portfolio of patents."
- The multi-year deal call on IPVALUE to "originate and assist VirnetX with negotiating transactions related to patent licensing worldwide with respect to agreed third parties." Specific deal terms are undisclosed.
- VirnetX currently has 107 U.S/foreign patents and over 75 pending patent applications. After spending most of the day with modest losses, shares sold off hard in afternoon trading. They remain up 11% YTD.
- Update: An adverse USPTO ruling regarding claims within one of the VPN patents asserted by VirnetX against Apple appears to be responsible for the selloff.
Fri, Apr. 10, 3:05 PM
- Today's notable tech gainers include IP licensing firm VirnetX (VHC +6%), custom parts maker Proto Labs (PRLB +4.6%), printing plate/commercial film maker Eastman Kodak (KODK +3.9%), cloud HR software vendor Paylocity (PCTY +3.7%), cloud telecom expense software vendor Tangoe (TNGO +4.2%), and cloud tech support software vendor Support.com (SPRT +6.7%). The Nasdaq is up 0.4%.
- Only a few tech companies are posting major declines. The group includes Chinese online video platform Youku (YOKU -5.7%) and mainframe/high-end server maker Unisys (UIS -3.4%).
- Following a rough 2014, VirnetX is up 34% in 2015; 15.9M shares were shorted as of March 13. Proto Labs has broken out of the narrow range shares have traded in since mid-February. Support.com's gains come a day after the company disclosed a new contract with Comcast. Paylocity is erasing the losses seen yesterday following a BofA downgrade. Kodak is up 13% since posting Q4 results on March 16.
- Youku, quite volatile lately, is giving back a chunk of Wednesday's big gains. Unisys' decline comes ahead of its April 23 Q1 report. On Wednesday, the company announced it's supplying high-end servers and cybersecurity software to NASA through the agency's SEWP V contract (covers multiple suppliers, worth up to $20B over 10 years).
- Previously covered: 3D Systems, Alcatel-Lucent, Nokia, LinkedIn, GoDaddy, FireEye, Turtle Beach, Mavenir/Mitel, Gigamon, Synacor
Thu, Apr. 2, 3:20 PM
- The the Nasdaq is up only fractionally ahead of the long weekend, the ranks of major tech gainers have easily outnumbered the ranks of major decliners today.
- Today's notable gainers include Chinese online video site Youku (YOKU +4.5%), IP licensing firm VirnetX (VHC +6.7%), mobile payment-processing/telemetry services firm USA Technologies (USAT +5.8%), VoIP service provider magicJack (CALL +5%), LED/chip equipment firm Aixtron (AIXG +4.9%), Chinese jobs site 51job (JOBS +4.9%), grocery coupon site Coupons.com (COUP +4.5%), telecom services/analytics firm Neustar (NSR +3.2%), and LED/chip equipment vendors Veeco (VECO +2.7%) and Aixtron (AIXG +4.9%).
- Youku is bouncing after having sold off to new 52-week lows in the wake of its Q4 numbers and an SEC inquiry disclosure. magicJack is recovering some of the big March losses seen after the company posted mixed Q4 results. Neustar is now up 19% since confirming a major contract loss and announcing a $150M buyback a week ago.
- Previously covered: 500.com, AudioCodes, Renren, Expedia, Hutchison, ReneSola, Cheetah Mobile, Sungy Mobile, Yandex, Digital Ally
- Notable decliners: Motorola Solutions, NeoPhotonics, TrueCar, Carbonite, Elephant Talk
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
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
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.
- IP licensing firms: ACTG, VRNG, VHC, SPEX, WILN, MARA, FNJN, OTCQB:WDDD, PRKR, DSS
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.
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
Dec. 19, 2014, 12:45 PM
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.
VHC vs. ETF Alternatives
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.
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