Though Himax (HIMX -12.2%) saw only modest losses yesterday after offering soft Q2 guidance (blamed on a customer inventory correction) to go with a slight Q1 EPS miss, it's having a much rougher time today.
On the Q1 CC (transcript), management was peppered with questions about whether the inventory issues at a major Korean customer (almost certainly Samsung) stemmed from the customer losing share to rivals. Himax also faced questions about a relatively muted gross margin growth outlook, and the pace at which LCOS microdisplay sales (linked to Google Glass' launch) will grow.
Chardan's Jay Srivasta downgraded shares to Sell yesterday: He thinks Samsung is "struggling to compete" against Chinese white-box OEMs (previous), and now believes Google Glass' (GOOG) commercial launch could be a 2015 event. As evidence, he notes Himax doesn't plan to ramp its LCOS production capacity this year - it's currently at just 300K units/month.
Shares now go for less than 10x 2015E EPS.