Hoku Scientific forecasts fiscal 1Q, annual sales

Hoku also forecast revenue for the 12 months ending March 31, 2009, of $15 million to $18 million. In the year-earlier period Hoku had revenue of $5.3 million.

Boosting capacity will remain a focus.

"The company expects that it will need to increase its efforts in supporting a polysilicon manufacturing and (photovoltaic) systems installation service business, develop its products and expand its corporate infrastructure," Hoku said in a statement. "As a result the company expects its costs to continue to increase significantly and expects to continue to incur losses for the foreseeable future."

Shares fell 47 cents, or 5.3 percent, to $7.81 in midday trading.

Also Tuesday, Hoku said that for the three months ended March 31 it lost $2.1 million, or 12 cents per share, slightly less than the loss of $2.1 million, or 13 cents per share, of the year-earlier quarter. Analysts polled by Thomson Financial expected, on average, a loss of 16 cents per share.

Revenue tumbled to $621,000 from $1.1 million. Analysts expected higher revenue of $920,000.