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Hoku posts net profit with help from Nissan contract | The Honolulu Advertiser | Hawaii's Newspaper
Posted on: Thursday, October 20, 2005

Hoku posts net profit with help from Nissan contract

Advertiser Staff

Work for Nissan Motor Co. boosted revenue and earnings for Hawai'i fuel-cell membrane maker Hoku Scientific Inc. in the quarter ended Sept. 30. The Kapolei-based company, which went public this year, has posted three consecutive profitable quarters in its business developing the membrane, or engine, that drives fuel cells.

QUARTER ENDED SEPT. 30

Net profit: $349,000, up from a $799,000 loss a year earlier

Revenue: $1.3 million, up from none a year earlier

Operating expenses: $864,000, down 3 percent from a year earlier

Earnings per diluted share: 2 cents, up from a loss of 15 cents a year earlier

Deferred revenue: $2.7 million, compared with $3.1 million at the end of June (year ago figure not available).

REASONS

  • Revenue reflected recognition of $1.3 million of deferred revenue related to contracts with Nissan. The company often collects cash from customer contracts but does not count the cash as revenue until services are delivered or contract milestones are met.

  • Hoku completed testing on most of its manufacturing equipment during the quarter, and is closer to having its new production line fully operational.

    WHAT THEY ARE SAYING

    "We achieved our third consecutive profitable quarter, with revenue and profit growth compared to the same period last year. We continue to have a positive outlook on our business and the fuel-cell industry as a whole."

    Dustin Shindo
    Hoku chairman, president and chief executive

    WHAT'S NEXT

  • Hoku expects about $1.7 million in revenue during the quarter ending Dec. 31.

  • The company completed testing most of its new manufacturing equipment this month but doesn't plan to use the equipment until the entire line is operational.

  • Last month, the Navy agreed on a potentially $2.5 million option for Hoku to make and help operate 10 fuel-cell power plants if Hoku meets three milestones.
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