Global Maxfin Capital analyst Ralph Garcea spent this past Monday and Tuesday in a courtroom in Virginia, attending 01 Communique’s (01 Communique Stock Quote, Chart, News: TSX:ONE) patent litigation case against LogMeIn.
Garcea says he was surprised at the decision of the jury, whom he expects were swayed by LogMeIn’s argument to redefine “location facility” which its defense spent most of the proceedings doing, he says.
The analyst says he fully expects 01 Communique will appeal yesterday’s decision. He notes that the Eastern District of Virginia federal jury came to two conclusions yesterday; first, that 01 Communique’s ‘479 patent is indeed valid, and that LogMeIn does not infringe on said patent.
Garcea stresses that this verdict only impacts the LogMeIn case, and not 01 Communique’s actions against Citrix, or its recent out of court victory against Bomgar. But Garcea says he must remove the potential royalty payments from this case into his financial modeling. In a research update to clients this morning, Garcea maintained his STRONG BUY rating on 01 Communique, but lowered his one-year price target to $1.50, from his previous $3.
Shares of 01 Communique were hammered yesterday, investors betting the LogMeIn news would be bad sent the stock down 63% to $.36 before it was halted with minutes left before market close The stock lost another 43.1% to close at $.205 today.
In a short press release yesterday, 01 Communique said it would update shareholders after consulting with its lawyers.
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