Dallas, Texas 10/02/2013 (Financialstrend) – Vringo, Inc. (NASDAQ:VRNG) shares have seen a close to 9.5% dip in market valuation since September 15. Analysts who closely follow the progress of this $234 million technology company have related this weakness in the stock to various developments on the legal and competitive fronts.
On September 26, Google announced the reengineering of its search algorithm code named “humming bird”. This announcement when read in tandem with Google’s April disclosure that it has found work around to avoid infringing on VRNG patents to optimize its search engine indicates a possible disruption in future royalty , that the company was expecting to earn from Google. Analysts believe this could be one of the reasons for the dip in investor confidence in the stock.
On September 12, VRGN announced the launch of new litigation against ADT and Tyco related to patent infringement. This is in addition to its current legal battles with ZTE ( on since 2012) and its original patent infringement fight with Google which is on since September 15, 2011. The uncertainties surrounding these long drawn out legal battles on enforcing its patent rights and seeking damages to the tune of $28 million to $30 million is another reason that is dragging down this stock, in opinion of some analysts.
As of close of business on October 1, the share price had settled at $2.84. This was a 1.05% dip on its previous day close. This loss of market value continues from the past few months. Stock has depreciated by close to 9% in the last one month and is down by 4% in the past week of trading. In the past 12 months trailing period, the company has recorded a accumulated $40 million loss in net income. It had managed a sales turnover of $1.6 million in the same period