Himax Says Google Chooses Not To Make Further Investment In Unit; Stock Plunges

(RTTNews) - Himax Technologies, Inc. (HIMX), a supplier and fabless manufacturer of display drivers and other semiconductor products, Tuesday said Google Inc. (GOOG, GOOGL) has decided not to exercise its previously issued purchase option to make an additional investment into Himax's subsidiary, Himax Display Inc. or HDI. The stock declined close to 13 percent in the extended trade.

Himax said "Google continues to work closely with Himax as a strategic partner on future technologies and products and will remain a board observer."

Subsequent to Google's first round investment in the Company's HDI subsidiary in October 2013, Himax has formed a strategic partnership with Google whereby Himax is the provider of liquid crystal on silicon or LCOS microdisplay technology that Google has recognized as the technology of choice for head-mounted displays or HMD such as Google Glass.

Since the third quarter of 2013, HDI has been expanding capacity and further enhancing production capabilities to meet demand for the LCOS product line.

Jordan Wu, President and CEO of Himax, said, "Despite Google's decision not to exercise its investment option in our HDI subsidiary, our continued close partnership with Google is invaluable as we aim to become a leading supplier to wearable technology companies and help to make the future of wearable products a reality."

The stock closed down 7.9 percent at $8.02 and declined 12.8 percent in the extended trade.