SOURCE: Hoku Scientific, Inc.

December 05, 2006 06:55 ET

Hoku Scientific, Inc. Announces Revised Third Quarter Earnings Estimate

KAPOLEI, HI -- (MARKET WIRE) -- December 5, 2006 -- Hoku Scientific, Inc. (NASDAQ: HOKU), a materials science company focused on clean energy technologies, today announced a revised earnings estimate for the third quarter ending December 31, 2006. Based on information currently available, revenue for the quarter is expected to range from $1.0 million to $1.2 million, all of which will be from the fuel cell business. This is consistent with the guidance previously provided when the Company announced its second quarter results. However, the Company's guidance on net income ranging from slightly profitable to a loss is being revised to a loss for the quarter ending December 31, 2006. The Company expects that its net loss for the quarter will range from $1.2 to $1.4 million, which includes non-cash charges of approximately $675,000 to $900,000 relating to a write down of capital equipment and inventory used in the Company's fuel cell business. In addition, the Company announced a reduction-in-force in the fuel cell business; however, charges related to the reduction-in-force are not expected to be material. Except as required by law, the Company assumes no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Dustin Shindo, chairman, president and chief executive officer of Hoku Scientific, said, "Due to a less promising outlook regarding the amount and timing of revenues in our fuel cell business, we have decided to redirect resources from our fuel cell business into our solar and polysilicon businesses, and, accordingly, we are writing-down the value of certain items of fuel cell research equipment, production equipment and inventory as well as curtailing headcount in this area. In addition, the anticipated loss reflects an increase in expenses associated with our deployment of resources into growing our customer base and executing on our plans to enter the solar and polysilicon businesses. Although we are disappointed in our revised third quarter guidance, we are very excited with the progress we are making in our solar and polysilicon businesses."

About Hoku Scientific, Inc.

Hoku Scientific (NASDAQ: HOKU) is a clean energy technologies company that develops and manufactures fuel cell membranes and membrane electrode assemblies (MEA) for stationary (including residential and back-up power applications) and automotive proton exchange membrane (PEM) fuel cells. The Company is currently planning to expand its business to manufacture solar modules and polysilicon for the solar and integrated circuit markets. For more information visit www.hokuscientific.com.

Hoku, Hoku Materials, Hoku Solar and the Hoku Scientific logo are trademarks of Hoku Scientific, Inc., all rights reserved. All other trademarks, trade names and service marks appearing in this press release are the property of their respective holders.

Forward-Looking Statements

This press release contains forward-looking statements that involve many risks and uncertainties. These statements relate to the Company's beliefs and expectations regarding its anticipated results for the quarter ending December 31, 2006; the Company's business strategy and plans; and objectives of management for future operations. In some cases, you can identify forward-looking statements by terms such as "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "will," "would" and similar expressions intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance, time frames or achievements to be materially different from any future results, performance, time frames or achievements expressed or implied by the forward-looking statements. Given these risks, uncertainties and other factors, you should not place undue reliance on these forward-looking statements. In evaluating these statements, you should specifically consider the risks described in the Company's filings with the Securities and Exchange Commission. Except as required by law, the Company assumes no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Contact Information

  • Contacts:

    Darryl Nakamoto
    Chief Financial Officer
    Hoku Scientific, Inc.
    (808) 682-7800
    Email Contact