Hoku Corporation Reports First Quarter Fiscal Year 2012 Results
HONOLULU, HI, August 11, 2011 – Hoku Corporation (NASDAQ: HOKU), a solar energy products and services company, today announced its financial results for the first quarter ended June 30, 2011, and provided a general update on its business.
Revenue for the quarters ended June 30, 2011 and 2010 were $485,000 and $930,000, respectively. Revenue in the quarter was derived primarily from photovoltaic, or PV, system installations and related services, the sale of electricity, and the resale of solar inventory. As of June 30, 2011 and 2010, deferred revenue of $472,000 and $72,000, 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 June 30, 2011 was $10.2 million, or $0.19 per share, compared to $2.7 million, or $0.05 per share, for the same period in fiscal 2011. Our increased net loss is attributable to our increasing operating costs, including labor and materials, as we begin commissioning and prepare for the operation of our polysilicon plant, and $5.3 million in expenses from payments to Idaho Power Company pursuant to our electric service agreement with them.
Non-GAAP net loss for the quarter ended June 30, 2011 was $8.7 million, or $0.16 per share, compared to $2.4 million, or $0.04 per share, for the same period in fiscal 2011. Non-GAAP net loss for the quarters ended June 30, 2011 and 2010 excludes non-cash stock-based compensation of $1.5 million and $321,000, 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, "During the last quarter we have continued our construction and commissioning activities at Hoku Materials as we prepare to commence operations in the weeks ahead, and we have maintained our focus on delivering investment-grade photovoltaic (PV) systems at Hoku Solar.”
Hoku Materials Update
Commenting on the Company's polysilicon subsidiary, Hoku Materials, Inc., Mr. Paul said, “At Hoku Materials, we remain on track to ship commercial product this calendar year. We are positioned to bring the first 2,500 metric tons of manufacturing capacity online in the coming weeks, and we continue commissioning key systems on site. We have completely aligned our construction management and operations teams to ensure a smooth and safe transition from construction into commissioning followed by continuous polysilicon production.”
Referring to the Company’s net loss, Mr. Paul said, “Our payments to Idaho Power are our single largest expense at this time. The electric service agreement, originally signed in 2008 and amended in 2009, provides for certain minimum payments to Idaho Power each month, regardless of whether or not we are consuming any power. These minimum payments were agreed by both parties to guarantee that Idaho Power could service our large power demand. Idaho Power had previously extended the date through March 2011 when those minimum amounts would be charged. We had hoped that Idaho Power would further extend the date until we commence operations of the plant; however, we have not reached any agreement with them for such deferral. Our failure to make these payments could result in Idaho Power’s termination of our electric service agreement, in which case we could not have the power to operate our polysilicon plant. Once we begin operation of our plant, these expenses will be included in our costs of goods sold, but prior to start-up they are booked as an operating expense. To ensure that we can commence operations this year, we have elected to make these payments; however, we are continuing our discussions with Idaho Power in an effort to mitigate these near-term losses.”
The following information was filed by Hoku Corp (HOKUQ) on Thursday, August 11, 2011 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.