) and Oculus Rift as the headset recognizes user's gestures and uses augmented reality spatiality maps the world. As for Himax's role in the Hololens, Srivatsa believes the company will increase production beginning in Q3 and will be in full production by fiscal year 2016, possibly contributing $80 million to $120 million by year end 2016. Despite downgrading Himax to a Sell in May due to market losses from one of its primary customers Samsung, coupled with a struggling Chinese smartphone market, Srivatsa sees substantial upside in potential Microsoft partnership. Srivatsa believes that earnings could see meaningful improvement while he projects Microsoft Hololens pricing around the $500 range with 2 to 3 million units sold. This is reflected in his revised fiscal year 2016 earnings as he upgrades Himax from Sell to Buy while his price target increases from $4/share to $13/share. His current price target of $13 implies around 60% of upside to the current price of $7.77/share as of Tuesday morning pre-market trading.