Hoku Q4 loss narrows, raises going-concern doubts

Thu Jun 11, 2009 5:17pm EDT

* May not have funds to continue as going concern

* Says may not have funds to complete plant

* Continues to see losses in future

* Q4 loss $0.03 vs $0.12

* Q4 revenue $0.11 mln

June 11 (Reuters) – Hoku Scientific Inc (HOKU) reported narrower fourth-quarter loss, helped by lower expenses, but said it may not be able to continue as a going concern over the next 12 months, sending its shares down nearly 17 percent in after market trading.

The company, which provides raw materials to the solar industry, said it may not be able to secure final funding for its polysilicon facility, which it estimates would cost about $390 million to construct.

“The company may not have sufficient funds to complete the construction of its polysilicon plant, or to continue as a going concern for the next 12 months,” Hoku said in a statement.

The company also said it might need to acquire polysilicon on the spot market and sell to its customers to meet its contractual obligations.

Hoku Scientific forecast costs to increase significantly and said it may continue to incur losses in the foreseeable future.

It, however, added that it will not provide a revenue outlook for fiscal 2010.

For the quarter ended March 31, Hoku’s net loss was $904,000 or 4 cents a share, compared with a net loss of $2.1 million, or 12 cents a share. Excluding items, net loss was 3 cents a share.

Analysts were expecting Hoku to post a loss of 12 cents a share, on revenue of $230,000.

Shares of the company closed at $4.38 Thursday on Nasdaq. They fell nearly 17 percent to $3.65 after market close.