UPDATE 1-Hoku posts in-line Q4 loss, says working on financing

Wed May 26, 2010 5:31pm EDT

* Q4 adj loss $0.03/shr

* Says working with Tianwei for financing

* Says to commence shipments of polysilicon in Q3

May 26 (Reuters) - Solar raw material provider Hoku Scientific Inc HOKU.O reported a fourth-quarter loss in line with market estimates, and said it is working with majority shareholder Tianwei New Energy Holdings Co Ltd for financing.

"We are working closely with Tianwei to identify appropriate sources for our remaining financing," Chief Executive Scott Paul said in a statement.

Tianwei has already invested $129 million in Hoku. In addition, Tianwei provided collateral support for $20 million in debt financing from China Merchants Bank.

For the fourth quarter ended March 31, the company reported a net loss of $2 million, or 4 cents a share, compared with a loss of $904,000, or 4 cents a share, last year.

Sales increased seven folds to $776,000.

Excluding items, the company reported a loss of 3 cents a share. Analysts were looking for a loss of 3 cents a share, according to Thomson Reuters I/B/E/S.

The company said it expects to commence commercial shipments of polysilicon in the third quarter. Hoku also expects to reach a total polysilicon production capacity of 4,000 metric tons by the end of this fiscal year.

Shares of the company closed at $3.05 Wednesday on Nasdaq. (Reporting by Vinay Sarawagi in Bangalore; Editing by Maju Samuel)

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