Hoku Scientific Inc., a Kapolei-based technology company that's expanding with a Mainland polysilicon plant, recorded a loss of $653,000, or 4 cents a share, in the three months ended June 30.

In the same period a year earlier, it had reported a profit of $313,000, or 2 cents a share.

The company reported yesterday that it generated $1.1 million in revenues from contracts with the Navy, compared with $1.2 million for the same quarter in 2006, when revenue was comprised principally of contracts with Nissan Motor Co.

Despite the lower financial results, company president and chief executive Dustin Shindo said the quarter had been a great one for the company because of progress made in its polysilicon business.

During the three-month period, the company signed polysilicon agreements with Suntech Power Holdings Co. Ltd. and Solar-Fabrik AG.

Those agreements, along with an existing deal with Sanyo, could potentially bring in some $1.2 billion over 10 years.

"We couldn't be happier with the strides made in our polysilicon and solar businesses over the past several months," Shindo said in a statement.

Hoku also announced plans to increase the size of a polysilicon plant being built in Pocatello, Idaho, to handle strong order growth.

Hoku shares rose 12 cents, or 1 percent, to close at $11.27 on the Nasdaq Stock Market.

In addition, Hoku announced it has signed a definitive agreement with Bank of Hawaii to install a PV power system at the bank's Kohala branch, on the Big Island.