Financial Results
Revenue for the quarters ended
Net loss, computed in accordance with U.S. generally accepted accounting principles, or GAAP, for the quarter ended
Non-GAAP net loss for the quarter ended
Reflecting on Hoku's financial performance during the past fiscal year,
Commenting on the higher loss in fiscal 2011,
Regarding the company's financing and liquidity,
Business Updates
Hoku Materials Update
Commenting on the Company's polysilicon subsidiary,
Hoku Solar Update
Commenting on
"This strategic effort is beginning to pay off," said
"I am also pleased to announce the appointment of
Summary
Conference Call Information
Hoku Corporation has scheduled a conference call on
About Hoku Corporation
Hoku Corporation (NASDAQ: HOKU) is a diversified clean energy products and services company with two business units: Hoku Materials and Hoku Solar. Hoku Materials manufactures, markets and sells polysilicon for the solar market from its plant currently under construction in
Hoku, Hoku Solar, and the Hoku Corporation logo are trademarks of Hoku Corporation, and Hoku Materials is the trademark of
© Copyright 2011, Hoku Corporation, all rights reserved.
Forward-Looking Statements
This press release contains forward-looking statements that involve many risks and uncertainties. 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 forward-looking statements include, but are not limited to, statements about the Company's future growth, financing of the completion and operations of its polysilicon production plant, financing support from Tianwei, the timing and completion of polysilicon production plant milestones, the timing of the commencement and ramping up of commercial production of polysilicon, increasing capacity at our polysilicon production facility, the timing of delivery of the Forest City
Sustainable Resources PV project, if at all, the Company's ability to develop PV systems and compete in solar markets beyond
Use of Non-GAAP Financial Information
To supplement its financial statements presented on a GAAP basis, the Company uses non-GAAP measures of net loss and net loss per share, which are each adjusted to exclude expenses relating to non-cash stock-based compensation, which the Company believes is appropriate to enhance an overall understanding of its past financial performance and its future prospects. As the Company uses FASB ASC 718 to calculate its non-cash stock-based compensation expense, it believes that it is useful to investors to understand how the expenses associated with the application of FASB ASC 718 are reflected on its statements of operations. The Company further believes that where the adjustments used in calculating non-GAAP net loss and non-GAAP net loss per share are based on specific, identified charges that impact different line items in the statements of operations (including cost of service and license revenue, and selling, general and administrative expense), it is useful to investors to know how these specific line items in the statements of operations are affected by these adjustments. For its internal budgets and forecasting, the Company uses financial statements that do not include non-cash stock-based compensation expense. Our use of non-GAAP financial measures has limitations that include that the non-GAAP financial measures we use may not be directly comparable to those reported by other companies. For example, the terms used in this press release, non-GAAP net loss and non-GAAP net loss per share, do not have standardized meanings. Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of our performance in relation to other companies. We seek to compensate for this limitation by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures in the tables attached to this press release. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net loss or net loss per share prepared in accordance with GAAP. Whenever the Company uses such non-GAAP financial measures, it provides a reconciliation of non-GAAP financial measures to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure.
HOKU CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except share and per share data)
Three Months Ended Twelve Months Ended
March 31, March 31,
------------------------ ------------------------
2011 2010 2011 2010
----------- ----------- ----------- -----------
Service and license
revenue $ 263 $ 776 $ 3,620 $ 2,606
Product revenue 27 - 27 -
----------- ----------- ----------- -----------
Total revenue 290 776 3,647 2,606
----------- ----------- ----------- -----------
Cost of service and
license revenue (1) 145 623 2,510 2,112
Cost of product revenue - - - -
----------- ----------- ----------- -----------
Total cost of revenue 145 623 2,510 2,112
----------- ----------- ----------- -----------
Gross margin 145 153 1,137 494
Operating expenses:
Selling, general and
administrative (1) 4,243 2,478 13,043 6,573
----------- ----------- ----------- -----------
Total operating
expenses 4,243 2,478 13,043 6,573
----------- ----------- ----------- -----------
Loss from operations (4,098) (2,325) (11,906) (6,079)
Interest and other
income - 252 166 521
----------- ----------- ----------- -----------
Net loss from continuing
operations (4,098) (2,073) (11,740) (5,558)
Discontinued operations:
Income (loss) from
discontinued
operations - (9) - 40
----------- ----------- ----------- -----------
Net loss (4,098) (2,082) (11,740) (5,518)
Net loss (income)
attributable to
noncontrolling interest - 51 (97) 86
----------- ----------- ----------- -----------
Net loss attributable to
Hoku Corporation $ (4,098) $ (2,031) $ (11,837) $ (5,432)
=========== =========== =========== ===========
Basic net loss per share
attributable to Hoku
Corporation $ (0.07) $ (0.04) $ (0.22) $ (0.23)
=========== =========== =========== ===========
Diluted net loss per
share attributable to
Hoku Corporation $ (0.07) $ (0.04) $ (0.22) $ (0.23)
=========== =========== =========== ===========
Shares used in computing
basic net loss per
share 54,752,811 54,544,918 54,659,713 23,548,244
=========== =========== =========== ===========
Shares used in computing
diluted net loss per
share 54,752,811 54,544,918 54,659,713 23,548,244
=========== =========== =========== ===========
-------------
(1) Includes stock-based
compensation as
follows:
Cost of service and
license revenue $ - $ 5 $ - $ 8
Selling, general and
administrative 162 201 918 830
HOKU CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
March 31,
------------------------
2011 2010
----------- -----------
Assets
Cash and cash equivalents $ 18,355 $ 6,962
Accounts receivable 548 249
Inventory 758 894
Costs of uncompleted contracts 128 93
Prepaid expenses 531 856
----------- -----------
Total current assets 20,320 9,054
Deferred cost of financing 792 1,175
Property, plant and equipment, net 481,481 287,975
----------- -----------
Total assets $ 502,593 $ 298,204
=========== ===========
Liabilities and Equity
Accounts payable and accrued liabilities $ 27,149 $ 22,660
Deferred revenue 72 6
Deposits - Hoku Materials 25,278 11,134
Other current liabilities 467 204
----------- -----------
Total current liabilities 52,966 34,004
Notes payable- net 237,888 37,709
Long-term deposits - Hoku Materials 114,922 115,866
----------- -----------
Total liabilities 405,776 187,579
----------- -----------
Commitments and Contingencies
Stockholders' equity:
Preferred stock, $0.001 par value. Authorized
5,000,000 shares; no shares issued and
outstanding as of March 31, 2011 and 2010. - -
Common stock, $0.001 par value. Authorized
100,000,000 shares; issued and outstanding
54,970,255 and 54,853,677 shares as of March
31, 2011 and 2010, respectively. 55 54
Warrant for 10,000,000 shares of common stock 12,884 12,884
Additional paid-in capital 115,500 114,748
Accumulated deficit (32,438) (20,601)
----------- -----------
Total Hoku Corporation stockholders' equity 96,001 107,085
----------- -----------
Noncontrolling interest 816 3,540
----------- -----------
Total equity 96,817 110,625
----------- -----------
Total liabilities and equity $ 502,593 $ 298,204
=========== ===========
HOKU CORPORATION AND SUBSIDIARIES
Reconciliations from GAAP Net Loss and GAAP Net Loss per share to Non-GAAP
Net Loss
and Non-GAAP Net Loss per share
(Unaudited)
(in thousands, except per share data)
Three Months Ended Twelve Months Ended
March 31, March 31,
------------------------ ------------------------
2011 2010 2011 2010
----------- ----------- ----------- -----------
GAAP net loss $ (4,098) $ (2,031) $ (11,837) $ (5,432)
Stock-based compensation
expense 162 206 918 830
----------- ----------- ----------- -----------
Non-GAAP net loss $ (3,936) $ (1,825) $ (10,919) $ (4,602)
=========== =========== =========== ===========
GAAP basic net loss per
share $ (0.07) $ (0.04) $ (0.22) $ (0.23)
Basic stock-based
compensation expense
per share 0.00 0.01 0.02 0.04
----------- ----------- ----------- -----------
Non-GAAP basic net loss
per share $ (0.07) $ (0.03) $ (0.20) $ (0.19)
=========== =========== =========== ===========
GAAP diluted net loss
per share $ (0.07) $ (0.04) $ (0.22) $ (0.23)
Diluted stock-based
compensation expense
per share 0.00 0.01 0.02 0.04
----------- ----------- ----------- -----------
Non-GAAP diluted net
loss per share $ (0.07) $ (0.03) $ (0.20) $ (0.19)
=========== =========== =========== ===========
Contacts for Hoku Corporation: Hoku Corporation Tel: 808-682-7800 Email: Email Contact
Source: Hoku Corporation
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