Gilford Securities Issues Research Report on VirnetX Holding Corporation (VHC)
03/12/2013

Gilford Securities, a full-service investment firm, headquartered in New York City, reiterated their Buy rating for VirnetX Holding Corporation (AMEX: VHC) in a research report issued to clients.

Online PR News – 12-March-2013 – New York – Gilford Securities, a full-service investment firm, headquartered in New York City, reiterated their Buy rating for VirnetX Holding Corporation (AMEX: VHC) in a research report issued to clients.

Updating the buy rating and thesis on the company, the analyst wrote, “Judge Leonard Davis issued his opinion regarding all post-trial motions last evening, February 26th. Overall the ruling was as expected and favorable for VirnetX and its shareholders. It was stern but not extreme in any manner, the best outcome possible in our opinion – assuming the decision is appealed, we believe it will be considered “reasonable” in the eyes of a panel/Federal Court of Appeals. Because the final opinion issued last evening was very reasonable, in our opinion, Apple must consider whether it is worthwhile to pursue the matter via the appeals process. As indicated in prior research, if AAPL were to appeal the decision, we do not view this to be an impediment.”

Highlighting other key points in the favorable ruling, the analyst further stated: “An injunction was not imposed, nor did the Judge “assign” a royalty rate, which we expected – however, the Judge has required the parties to meet via mediation and attempt to establish a licensing arrangement within a period of 45 days – net, the Judge took a constructive/firm but not extreme tack, instructing the two parties to determine a reasonable arrangement on their own terms, the best outcome in our opinion – again, we feel a partnership is in the best interests of both parties. The Judge did conclude VirnetX provided “substantial evidence” supporting a 1% royalty rate – net, this is significant at it sets a precedent for any potential deals established with remaining litigants and non-litigants in the future – investor concern/debate related to future negotiations/applicable royalty rates should now abate.”

In conclusion, the analyst said, “Finally, as major litigation efforts appear to be winding down, investors should focus on the company moving forward in an effort to establish licensing arrangements with non-litigants in the coming months. We anticipate the core strength of the company’s model emerging during 2013.

About Gilford Securities

Founded in 1979 by senior officers of the former Blythe Eastman Dillon & Co., Gilford is a full-service boutique investment firm providing an array of financial services to institutional and retail clients including corporate finance services, independent equity research, equity sales and trading, retirement planning and wealth management. The firm’s research effort targets select underserved niche segments in the small and middle capitalization market sector.

For more information about Gilford Securities, please visit http://www.gilfordsecurities.com

Contact:
John Richter
Gilford Securities Incorporated
212-888-6400 / John.richter@gilfordsecurities.com
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