Hoku Scientific (HOKU) Reports Horrendous Quarter

Hoku Scientific (HOKU) is out with results after the bell today and they aren’t pretty.  The company reported a non GAAP EPS loss of .03/share, a wider loss than the year ago quarter in which the company lost .01/share.  Revenues were equally as awful, coming in at $767K.. good for a nearly 50% drop from the year ago period.  Their outlook for next year doesn’t get any better with a projection of only $5 million in revenue due to a change in the relationship with the Hawaii DOT. 

“Regarding the financing for our power purchase agreements with the State of Hawaii Department of Transportation, we had previously expected to sell our turnkey PV systems directly to a third-party investor, who would have also assumed ownership of the associated power purchase agreements. Instead, we elected to enter into a joint venture with UFA Renewable Fund I, LLC to finance the design and installation of these PV systems. This approach remains consistent with our cash management strategy for the construction of our polysilicon production facility, and allows us to participate in the cash flows from the sale of power to DOT over the twenty-year duration of the PPAs. However, it does not allow us to recognize revenue from the sale of these PV systems. As a result, we now expect to recognize approximately $5 million in revenues in fiscal 2009.”

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