VirnetX Holding Corp. (VHC), the patent licensing company that saw a $625.6 million award against Apple Inc. tossed by a federal court, said its second quarter 2016 net loss narrowed 44% from the year ago period which included a $4.24 million royalty expense.
The Zephyr Cove, Nevada-based company run by CEO Kendall Larsen said its net loss was $5.34 million, or 10 cents a share, compared with $9.55 million, or 18 cents.
Shares of VirnetX gained 14 cents, or 5.6% to $2.64 on Tuesday, Aug. 9. They’ve traded between $1.95 and $9.64 over the past year.
Revenue was little changed at $398,000, versus $400,000 a year ago. The company spent $481,000 on research and development, compared with $417,000 a year ago.
The company’s selling, general and administrative expenses totaled $5.27 million, compared with $5.3 million, a year ago.
The company ended the quarter with cash, marketable securities and prepaid expenses totaling $19.045 million.
The company said it expects its cash and cash equivalents and short-term investments as of June 30, 2016, as well as cash received from sales of common shares under an at-the-market offering facility will be sufficient to fund its current level of operations, including legal expenses and provide related working capital for the foreseeable future.
“Over the longer term, we expect to derive the majority of our future revenue from license fees and royalties associated with our patent portfolio, technology, software and secure domain name registry in the United States and other markets around the world.”
To be sure, VirnetX’s hope of receiving the $625.6 million award from Apple was dashed for a second time on July 29 by the U.S. District Court in Tyler, Texas, because Judge Robert Schroeder III ruled that a decision to combine two enforcement actions and repeated references by VirnetX attorneys to a previous trial were prejudicial against Apple. The first trial ended in a $368 million award to VirnetX, which was overturned as excessive by the Court of Appeals for the Federal Circuit.
Judge Schroeder’s order means that in the retrial of the first Apple case jury selection will begin on Sept. 26, 2016, unless the parties agree otherwise on an alternative date. The second case won’t begin until the first case is complete.
—To reach the reporter responsible for this story, please contact Dan Lonkevich at 707 318-7899 or email@example.com