Hoku Scientific Announces Earnings Conference Call for First Quarter Fiscal 2010

HONOLULU, HI--(Marketwire - July 16, 2009) - Hoku Scientific, Inc. (NASDAQ: HOKU), a materials science company focused on clean energy technologies, announced today that it will hold a conference call with investors and analysts on Thursday, July 30, 2009 at 5:00 p.m. Eastern Time to discuss results for the Company's first quarter fiscal year 2010 ended June 30, 2009 and the Company's business outlook.

The news release announcing the first quarter fiscal year 2010 ended June 30, 2009 results will be disseminated over a national wire service on July 30, 2009 prior to the conference call. The press release will be posted at the Company's website: www.hokucorp.com.

The dial-in number for the live audio call beginning at 5:00 p.m. Eastern Time is (719) 325-2348. A live webcast of the conference call will be available on Hoku's website at www.hokucorp.com.

A replay of the call will be available shortly after the conclusion of the call via the web at www.hokucorp.com. The webcast will be recorded and available for replay until the Company's conference call to discuss its financial results for its second quarter of fiscal year 2010.

Hoku Scientific, Inc. Reports Third Quarter Fiscal Year 2009 Results

HONOLULU, HI--(Marketwire - January 28, 2009) - Hoku Scientific, Inc. (NASDAQ: HOKU), a materials science company focused on clean energy technologies, today announced its financial results for the third quarter ended December 31, 2008 and provided a general update on its business.

Financial Results

Revenue for the quarters ended December 31, 2008 and 2007 was $767,000 and $1.3 million, respectively, derived primarily from photovoltaic, or PV, system installation contracts. As of December 31, 2008 and March 31, 2008, deferred revenue of $12,000 and $36,000, respectively, was attributable to PV system installation projects and related service contracts.

Net loss, computed in accordance with U.S. generally accepted accounting principles, or GAAP, for the quarter ended December 31, 2008 was $863,000, or $0.04 per diluted share, compared to $538,000, or $0.03 per diluted share, for the same period in fiscal 2008.

Non-GAAP net loss for the quarter ended December 31, 2008 was $646,000, or $0.03 per diluted share, compared to $274,000, or $0.01 per diluted share, for the same period in fiscal 2008. Non-GAAP net loss for the quarters ended December 31, 2008 and 2007 excludes non-cash stock-based compensation of $217,000 and $264,000, respectively. The accompanying schedules provide a reconciliation of net loss per share computed on a GAAP basis to net loss per share computed on a non-GAAP basis.

Dustin Shindo, chairman, president and chief executive officer of Hoku Scientific, said, "Broader economic conditions had some effect on our PV system installation business during the third quarter of fiscal 2009 and are expected to continue to affect our sales in the quarter to come. However, in terms of aggregate capacity, we expect to install more than 1.4 megawatts of PV systems in fiscal 2009, compared to approximately 0.2 megawatts in fiscal 2008."

Mr. Shindo continued, "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."

"Despite this revision to our fiscal 2009 revenue guidance, we are pleased with these results," Mr. Shindo concluded. "We are proud to have successfully secured PPA financing for the Hawaii State government's first major solar power installation, despite notable turbulence in the finance markets. And, we are pleased with our continued progress in our solar installation business. We have dramatically increased the aggregate amount of PV installed compared to FY 2008, and are beginning to see a backlog of projects in the design phase for future construction."

Business Updates

Hoku Materials Polysilicon Plant Update

Commenting on the Company's polysilicon subsidiary, Hoku Materials, Inc., Mr. Shindo said, "We continued to make significant progress on the construction of our polysilicon production facility, finishing the calendar year on schedule."

The Company reported that construction efforts during the past quarter had been focused on preparing the reactor building for the arrival of the first shipment of reactors, and on completing the required components for demonstration testing and early-stage production, including the vent gas recovery system and key infrastructure, such as electric power. The Company has already taken delivery of the first six reactors, and expects the remaining ten from the first order to arrive in the first half of calendar year 2009. The second order of twelve reactors is expected to arrive in Pocatello beginning in the second half of calendar year 2009.

"We continue actively working to mitigate the impact of delayed customer prepayments, but now expect that this may result in a shift of our planned production demonstration from the first quarter of calendar year 2009 to the second quarter of calendar year 2009," Mr. Shindo said. "Looking ahead, this may also cause us to shift our planned first commercial shipment from the first half of 2009 to the second half of 2009. As before, we plan to ramp-up production throughout the second half of calendar year 2009 and into calendar year 2010, when we expect to reach full production capability. We expect this revised schedule will still allow us to meet all delivery obligations to our current customers, and we will continue managing our project to ensure this remains the case."

Mr. Shindo concluded, "Viewed in terms of market conditions and expected customer prepayments, this has been a challenging quarter. However, we have taken a proactive approach to managing these challenges: adjusting capital expenditures where required; amending customer agreements when necessary; and developing a number of viable contingency financing strategies to resolve the current funding shortfall. As a result, we continue to make progress on our polysilicon project and fully expect to meet our contractual commitments to our customers."

Polysilicon Plant Financing Update

Hoku Materials continues to estimate that it will cost approximately $390 million to engineer, procure and construct its polysilicon production plant, and does not believe it will need to procure any additional equipment to increase the original planned production from 3,500 to 4,000 metric tons.

Hoku had received $98.5 million in prepayment deposits from its current customers as of December 31, 2008, and in January 2009, received subsequent prepayments from Jinko Solar in the amount of $7.5 million, for a total of $106 million received to date. As of December 31, 2008, the construction-in-progress for the project was $140.2 million.

Hoku had previously confirmed that Wealthy Rise International, Ltd. (Solargiga) had failed to make prepayment deposits in the aggregate amount of $43 million, which, according to the terms of its contract, are past due. Hoku reported that the two companies remained in discussions to resolve the late payments, and that it expects to either amend its contract with Solargiga, or terminate the sales agreement altogether. In the event Hoku terminates the Solargiga agreement, Hoku expects to supplement the unmet prepayment commitments by reselling the polysilicon capacity to other current or future customers.

Notwithstanding Solargiga's current default, Hoku plans to fund the project cost through a combination of customer prepayment commitments, cash generated through operating activities, and through one or more additional financing strategies.

"To replace unmet and revised customer prepayment commitments, we are actively working to reallocate Solargiga production capacity and recaptured Jinko Solar capacity, and we have seen a marked uptick recently in new business inquiries," said Dustin Shindo. "And, while current market conditions are certainly not favorable for financing, our shelf registration statement remains active, so we have additional flexibility, should the markets improve over the coming quarters."

If required, Hoku has said it has the ability to defer some of its planned capital expenditure by delaying the construction of its trichlorosilane (TCS) production facility and purchasing TCS on a contract basis from a North American supplier. The Company has also reported that additional capital expenditure reductions may be possible by further delaying the arrival of additional reactors, while still ensuring enough production capacity to fulfill its current contractual obligations.

Mr. Shindo commented: "With the ongoing support of our customers and partners -- especially our project engineers, contractors and equipment providers -- we have successfully navigated a challenging quarter and look forward to resolving the current uncertainty regarding our contract with Solargiga. We also are increasingly optimistic about the outlook for establishing new polysilicon sales relationships."

Hoku Solar Update

The Company's wholly owned subsidiary, Hoku Solar, Inc., markets, sells and installs turnkey photovoltaic, or PV, power systems in Hawaii.

Commenting on Hoku Solar, Mr. Shindo said, "We continued to build our Hawaii-focused PV installation business during the past quarter, completing the installation of nearly 40 kilowatts of clean solar power for Xcel International (Billabong) and initiating the installation of the first two of seven projects for the State of Hawaii Department of Transportation, Airports Division (DOTA). We also successfully secured the financing for the DOTA projects by establishing a joint venture with U.S. Bancorp and United Fund Advisors."

Mr. Shindo continued, "During the upcoming quarter, Hoku Solar expects to complete the installation of all seven airport PV systems, and will focus on the financing and delivery of other pipeline PV integration projects."

Summary

"In summary, like many companies, we have been affected by the adverse macroeconomic conditions over the past quarter. However, we have been able to mitigate the long-term impacts through careful planning and conservative cash management," said Mr. Shindo. "Importantly, we believe Hoku Materials remains well-positioned for on-time delivery of polysilicon to our current customers. We have financing options, flexibility in our project CAPEX model and the continued, invaluable support of our customers and our project team -- including our engineering and construction partners, and our key equipment suppliers."

Mr. Shindo continued, "In Hawaii, Hoku Solar is in the process of completing the largest PV installation to date for the State government, so we continue to see good results from our ongoing efforts to grow our PV systems installation business."

"Thus, in both our solar installation and polysilicon businesses, a combination of strong partnerships, strategic planning and proactive management has allowed us to continue making progress, despite very challenging external market conditions. We are pleased by the results of this approach and expect to continue building momentum throughout 2009," concluded Mr. Shindo.

Hoku Scientific Tapped For Xcel Solar Project

HALEIWA, HI--(Marketwire - October 1, 2008) - The Xcel Building, owned by Ed D'Ascoli, founder and president of Xcel International, Inc. (Xcel), has selected Hoku Solar, a wholly-owned subsidiary of Hoku Scientific, Inc. (NASDAQ: HOKU) that designs, engineers and installs turnkey photovoltaic (PV) power systems, to install a PV power system on the Xcel Building.

Located in the historic town of Haleiwa on the North Shore of Oahu (Hawaii), the Xcel Building is Xcel's headquarters and manufacturing facility. Hoku Solar plans to install a 34-kilowatt PV system, expected to generate more than 53,500 kilowatt hours of clean, renewable solar electricity each year and will contribute directly to Xcel's ongoing corporate sustainability initiative.

Once installed, Xcel's PV system is expected to produce enough electricity over its lifetime to power the equivalent of 151 homes for one year, and offset more than 885 tons of carbon dioxide emissions -- the equivalent of removing more than 57 cars from Hawaii's roadways.

"Hoku is pleased to partner with Ed D'Ascoli and the Xcel Building on this exciting project," said Dustin Shindo, chief executive officer of Hoku Scientific. "Commercial scale PV systems make proven business sense in Hawaii, and we are proud to have been selected to help integrate clean, sustainable power into Xcel's operations."

"Xcel is focused on finding meaningful ways to reduce our environmental footprint that make good business sense," said Ed D'Ascoli, founder and president of Xcel. "Our company was built on a passion for the ocean, so we are mission-compelled to do everything we can -- as a company and as individuals -- to implement sustainable strategies into our core business. And, like Xcel, Hoku is a global company with deep local roots committed to our community and environment. We saw a natural fit between our companies."

Hoku Scientific Announces Investors Conference Call

KAPOLEI, HI--(Marketwire - July 2, 2008) - Hoku Scientific, Inc. (NASDAQ: HOKU), a materials science company focused on clean energy technologies, announced today that it will hold a conference call with investors and analysts on Wednesday, July 16, 2008 at 5:00 p.m. Eastern Time to discuss results for the Company's first quarter fiscal year 2009 ended June 30, 2008 and the Company's business outlook.

The news release announcing the first quarter fiscal year 2009 results will be disseminated over a national wire service on July 16, 2008 after the market close. The press release will be posted at the Company's website: www.hokuscientific.com.

The dial-in number for the live audio call beginning at 5:00 p.m. Eastern Time is (719) 325-4911. A live webcast of the conference call will be available on Hoku's website at www.hokuscientific.com.

A replay of the call will be available shortly after the conclusion of the call via the web at www.hokuscientific.com. The webcast will be recorded and available for replay until the Company's conference call to discuss its financial results for its second quarter of fiscal year 2009.

Hoku Solar Announces Deal With Major Hawaiian Beer Distributor

KAPOLEI, HI--(Marketwire - March 24, 2008) - Hoku Solar, Inc., a wholly owned subsidiary of Hoku Scientific, Inc. (NASDAQ: HOKU), established to design, engineer and install photovoltaic (PV) power systems, today announced that it has signed a definitive agreement with Paradise Beverages, Inc. to install a PV power system at its Oahu facility. Hoku Solar had previously completed the installation of two turnkey PV power systems for Paradise Beverages at its Kailua-Kona, on the Big Island of Hawaii, and Lihue, Kauai, facilities.

Paradise Beverages is the Hawaii distributor for Heineken, Coors and Miller products, and it consumes a significant amount of electricity to operate its refrigerated and temperature-controlled warehouses. Upon completion of the Oahu facility installation, the aggregate of all three PV power systems for Paradise Beverages includes 350 kilowatts of PV panels, which are expected to produce over 525,000 kilowatt-hours of electricity each year.

"The benefits of our PV power system installations on our Kailua-Kona and Lihue facilities were immediate. This made our decision for an installation on our Oahu facility with Hoku Solar an easy one," said Gordon Usui, Chief Financial Officer for Paradise Beverages.

PV systems are a sensible way to utilize unused roof space to reduce energy costs and environmental impact. Hoku Solar offers turnkey PV solutions in Hawaii, providing design, engineering, financing, and installation services.

Hoku Scientific Inks Agreement With Global Expertise

POCATELLO, ID--(Marketwire - March 5, 2008) - Hoku Materials, Inc., a wholly owned subsidiary of Hoku Scientific, Inc. (NASDAQ: HOKU), established to manufacture and sell polysilicon for the solar market, today announced an amendment to its polysilicon supply agreement with Global Expertise Wafer Division, a wholly owned subsidiary of Solar-Fabrik AG (XETRA: SFXG), a vertically integrated solar power company in Freiburg, Germany, to extend the date for Hoku to complete the financing for its planned polysilicon plant. Under the terms of the amendment, Hoku or Global Expertise Wafer Division may terminate the supply agreement if Hoku has not secured financing for its polysilicon plant by May 31, 2008, which is a two-month extension from the previous deadline of March 31, 2008. This is the only amendment to the supply agreement, and the extended deadline is consistent with the financing deadlines in Hoku's contracts with SANYO Electric Co., Ltd., and Suntech Power Holdings Co., Ltd.

"We recently completed our $25 million private placement, and we continue to work with Merrill Lynch on their due diligence to lend us the additional capital we need to finance the construction of our polysilicon facility in Pocatello, Idaho," said Dustin Shindo, Chief Executive Officer of Hoku Scientific. "Extending the financing deadlines in our customer contracts reduces some of the time pressure to complete the financing. We appreciate the continuing support from Global Expertise Wafer Division of our planned polysilicon business."

In December, 2007, Hoku Scientific announced that it had signed a non-binding term sheet with Merrill Lynch Pierce Fenner & Smith Inc. for Hoku Materials to borrow up to approximately $185 million for the construction, procurement and start-up of its planned polysilicon production plant in Pocatello, Idaho. The term sheet expires on May 31, 2008. In February, Hoku Scientific completed the private placement of approximately $25 million of its common stock to institutional investors and a subsidiary of Suntech Power Holdings Co., Ltd.

Hoku Scientific Releases Q3 Financial Results

Hoku Scientific, Inc. (NASDAQ: HOKU), a materials science company focused on clean energy technologies, today announced its financial results for its third quarter ended December 31, 2007 and provided a general update on its business.

Revenue for the quarter ended December 31, 2007 was $1.3 million compared to $1.1 million for the quarter ended December 31, 2006. Revenue for the nine months ended December 31, 2007 was $2.6 million compared to $4.2 million for the nine months ended December 31, 2006. The decrease in revenue for the nine months ended December 31, 2007 compared to the same period in 2006 was primarily due to the completion of the Nissan Motor Co., Ltd. contracts in 2006 and no similar contracts in 2007. The decrease was offset by the recognition of revenue from photovoltaic, or PV, systems installations during the three months ended December 31, 2007. Deferred revenue of $355,000 at December 31, 2007 was attributable to contracts related to PV systems installations while deferred revenue of $990,000 at March 31, 2007 was attributable to contracts with the U.S. Navy, which were completed in August 2007.

Net loss, computed in accordance with U.S. generally accepted accounting principles, or GAAP, for the quarter ended December 31, 2007 was $538,000, or $0.03 per diluted share, compared to $1.3 million, or $0.08 per diluted share, for the same quarter in 2006. Net loss, computed in accordance with GAAP, for the nine months ended December 31, 2007 was $2.2 million, or $0.13 per diluted share, compared to $635,000, or $0.04 per diluted share, for the same period in 2006.

Non-GAAP net loss for the quarter ended December 31, 2007 was $274,000, or $0.01 per diluted share, compared to $1.0 million, or $0.06 per diluted share, for the same quarter in 2006. The non-GAAP net losses for the quarters ended December 31, 2007 and 2006 exclude non-cash stock-based compensation of $264,000 and $212,000, respectively. Non-GAAP net loss for the nine months ended December 31, 2007 was $1.3 million, or $0.08 per diluted share, compared to non-GAAP net income of $0, or $0.00 per diluted share, for the same period in 2006. Non-GAAP net loss for the nine months ended December 31, 2007 and net income for the nine months ended December 31, 2006 exclude non-cash stock-based compensation of $876,000 and $635,000, 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.

Dustin Shindo, chairman, president and chief executive officer of Hoku Scientific, said, "We continue to make steady progress in our Hoku Solar and Hoku Materials businesses. To begin with, we signed a new polysilicon sales contract with Solarfun for approximately $306 million in polysilicon product shipments. We now have contracted future revenue with four leading solar companies from the sale of up to $1.5 billion of polysilicon over a seven to ten year period.

"Primarily due to the new contract with Solarfun, we have decided to increase the annual capacity of Phase I of our planned polysilicon facility from the previously announced 2,500 metric tons per year to 3,500 metric tons per year. Once our plant is operating at full capacity, we will be able to meet the annual delivery requirements in our four existing polysilicon sales contracts, and we will have some additional polysilicon available for sale. Although we have increased the size of the first phase of our polysilicon facility, we still plan to have a Phase II expansion. We believe we have sufficient space to expand our polysilicon production to up to 8,000 metric tons per year on our existing 67-acre property; however the expansion size will primarily be determined based on new polysilicon sales contracts that we may sign.

"We estimate the cost of our planned 3,500 metric tons per year facility to be approximately $400 million. We intend to use the $240 million in advance payment commitments from our polysilicon customer agreements to contribute to the financing of the construction and we have signed a non-binding letter of intent with Merrill Lynch to help finance the remaining construction costs. We intend to borrow approximately $185 million from Merrill Lynch, subject to our satisfying certain conditions, including the completion by Merrill Lynch of its due diligence and our ability to provide approximately $35 million for use in the construction of the planned polysilicon plant.

"Although we have increased the size our polysilicon facility, we expect to deliver polysilicon in the first half of calendar year 2009. However, due to our additional contract with Solarfun, we now believe our annualized revenue based on our existing supply agreements and polysilicon that is available for sale when we are running at our full 3,500 metric ton capacity will be in the range of $180 million to $200 million per year. Our gross margins are still expected to be in the range of 45% to 55%.

"Significant steps have also been made in our Hoku Solar business. During the quarter ended December 31, 2007, we completed residential and commercial PV system installations, including two installations for Paradise Beverages, the Hawaii distributor for Coors, Heineken, Corona, and Miller products, and one installation for Bank of Hawaii. In addition, Hawaiian Electric Company has submitted our contract to the Hawaii Public Utilities Commission for approval of the sale by us to Hawaiian Electric Company of electricity generated by a PV system that we would install, own and operate. If approved, we will install a 167 kilowatt PV system and sell the power generated by that system over a 20-year period to Hawaiian Electric Company. We also entered into a non-binding agreement with The James Campbell Company to plan the Kapolei Sustainable Energy Park, which includes a PV installation that would be capable of generating approximately 1.5 megawatts of photovoltaic power, which would be the largest PV facility on Oahu.

"In summary, this was another great quarter for Hoku Scientific. We were able to sign a new polysilicon sales agreement and are working with Merrill Lynch to secure financing. We also continue to make progress in the engineering and construction of our polysilicon production plant, which has allowed us to expand the expected size of the first phase of our planned polysilicon facility to 3,500 metric tons per year. Our solar installation business is continuing to grow and the potential of this business is becoming evident."

Hoku Scientific Sinks 250 mil Into Solar Power

Pacific Business News (Honolulu) - 5:16 PM HAST Tuesday

Hoku Scientific says it will invest $250 million to enter the solar power market.
The move comes less than a week after the U.S. Navy agreed to use the first two of 10 Hoku-manufactured fuel cell power plants at Pearl Harbor Naval Station. That caused Hoku's stock price to increase 40 percent.
"Our plans to enter the solar power market represents the logical extension of our business as a provider of clean-energy technologies, and complements our core fuel cell business," said Dustin Shindo, chairman, president and CEO of Hoku Scientific (Nasdaq: HOKU).
Kapolei-based Hoku plans to manufacture the solar fuel cells in Singapore and will call the project "Hoku Solar." Hoku Solar hopes to have a manufacturing capacity of 30 megawatts per year by the second half of 2007.