Gilford Securities Issues Research Report on VirnetX Holding Corporation by noblex


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									Gilford Securities Issues Research Report on
       VirnetX Holding Corporation

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

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

John Richter
Gilford Securities Incorporated
212-888-6400 /
Analyst Certification

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