Hoku Corporation Reports Fourth Quarter and Fiscal Year 2011 Results
HONOLULU, HI, June 9, 2011 – Hoku Corporation (NASDAQ: HOKU), a clean energy products and services company, today announced its financial results for the fourth quarter and fiscal year ended March 31, 2011, and provided a general update on its business.
Revenue for the quarters ended March 31, 2011 and 2010 were $290,000 and $776,000, respectively. Revenue for the fiscal year ended March 31, 2011 was $3.6 million compared to $2.6 million for fiscal 2010. Revenue in fiscal 2011 and 2010 was derived primarily from photovoltaic, or PV, system installations and related services, the sale of electricity, and the resale of solar inventory. As of March 31, 2011 and 2010, deferred revenue of $72,000 and $6,000, respectively, were attributable to PV system installation and related service contracts.
Net loss, computed in accordance with U.S. generally accepted accounting principles, or GAAP, for the quarter ended March 31, 2011 was $4.1 million, or $0.07 per share, compared to $2.0 million, or $0.04 per share, for the same period in fiscal 2010. GAAP net loss for the fiscal year ended March 31, 2011 was $11.8 million, or $0.22 per share, compared to $5.4 million, or $0.23 per share, for fiscal 2010.
Non-GAAP net loss for the quarter ended March 31, 2011 was $3.9 million, or $0.07 per share, compared to $1.8 million, or $0.03 per share, for the same period in fiscal 2010. Non-GAAP net loss for the quarters ended March 31, 2011 and 2010 excludes non-cash stock-based compensation of $162,000 and $206,000, respectively. Non-GAAP net loss for the fiscal year ended March 31, 2011 was $10.9 million, or $0.20 per share, compared to $4.6 million, or $0.19 per share, for fiscal 2010. Non-GAAP net loss for fiscal 2011 and 2010 exclude non-cash stock based compensation of $918,000 and $830,000, respectively. The accompanying schedules provide a reconciliation of net loss and net loss per share computed on a GAAP basis to net loss and net loss per share computed on a non-GAAP basis. The Company uses non-GAAP measures of net loss and net loss per share, which the Company believes is appropriate to enhance an overall understanding of its past financial performance and its future prospects.
Scott Paul, chief executive officer of Hoku Corporation said, "Our priorities in fiscal 2011 were, first to mitigate the schedule and budget uncertainties and risks to completing our Hoku Materials polysilicon production plant; second, to firmly establish our downstream Hoku Solar PV systems business; and, third, to enhance our management team and business processes as we become firmly integrated into the Tianwei Group and scale-up our operations.”
Reflecting on Hoku’s financial performance during the past fiscal year, Mr. Paul said, “Our increase in revenues compared to the prior fiscal year reflects our focus on the commercial, industrial and institutional PV markets. That said, we viewed fiscal 2011 as a year to reset our priorities, clarify our strategy, and develop a solid plan for future growth. As our focus on developing large-scale PV projects begins to pay-off, I believe Hoku Solar is positioned well to be a stronger competitor going forward.”
Commenting on the higher loss in fiscal 2011, Mr. Paul said, “Our losses were higher primarily due to: 1) increased staffing levels required ahead of our planned plant commissioning later this year; 2) our ongoing payments to Idaho Power for reserve power capacity in advance of our plant start-up; and 3) our successful polysilicon plant pilot production earlier in the year.”