[Daydream] ATC export results in unknown textures

Development Rendering
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1

I followed the instructions from: http://docs.unrealengine.com/latest/INT/Platforms/GoogleVR/QuickStart/index.html
and when I export with ATC selected I get the following log messages when starting the app:

06-05 14:15:09.595: D/UE4(11959): [2016.06.05-12.15.09:602][-6918240]LogTexture:Error: Texture2D /Game/StarterContent/Textures/T_Explosion_SubUV.T_Explosion_SubUV is unknown which is not supported.

(just one texture message pasted here - however approx 90% of my textures get this), which results in missing textures in the game.

Is there some texture compression setting that is not supported for ATC ? Is ATC required for Daydream and what is the advantage of it?

FYI:

When exporting at ETC2 the error is
not shown and all textures are seen.

EDIT: Also occurs in 4.13

2

As per the answers given here: Google Daydream - XR Development - Unreal Engine Forums
ASTC or ETC2 should be used since ATC is not supported by the Exynos chipset

3

Yes, ATC is not showing textures for Cardboard plugin at least in the Galaxy S7, confirmed, works with ETC2, thank you.