VirnetX Holding (VHC) Investors Lock in Profits; Stock Tumbles


Shares of VirnetX Holding (VHC) declined as much as 19% today despite a lack of company-specific news. Rather, the fall appears to stem from VHC’s recent meteoric rise. Before today, the stock has more than tripled from its 52-week low set last May, so it’s not surprising that some investors might be tempted to take their profits off the table today.

Yesterday, VirnetX investors were excited to hear that an appeals court upheld a former verdict requiring Apple to pay VirnetX $439.8 million for infringing on patents that were allegedly used in the tech giant’s secure communications technologies, including FaceTime and iMessage. With a market cap of 383 $million, the legal win is a welcome piece of good news for VirnetX fans.

VirnetX is an Internet security software and technology company with patented technology for secure communications including 4G LTE security. The company’s software and technology solutions, including our Secure Domain Name Registry and GABRIEL Connection Technology™, are designed to facilitate secure communications and provide the security platform required by next-generation Internet-based applications such as instant messaging, or IM, voice over Internet protocol, or VoIP, mobile services, streaming video, file transfer, remote desktop and Machine-to-Machine, or M2M communications.

VirnetX’s technology generates secure connections on a “zero-click” or “single-click” basis, significantly simplifying the deployment of secure real-time communication solutions by eliminating the need for end-users to enter any encryption information. The company’s portfolio of intellectual property is the foundation of our business model. The company currently own approximately 185 total patents and pending applications, including 70 U.S. patents/patent applications and 115 foreign patents/validations/pending applications. The company’s patent portfolio is primarily focused on securing real-time communications over the Internet, as well as related services such as the establishment and maintenance of a secure domain name registry. The patented methods also have additional applications in the key areas of device operating systems and network security for Cloud services, M2M communications in the new initiatives like “Smart City”, “Connected Car” and “Connected Home” that would connect everything from social services and citizen engagement to public safety, transportation and economic development to the internet to enable more productivity, features and efficiency in our everyday lives.