The company said it now expects a third-quarter loss of $1.2 million to $1.4 million, down from a forecast for income ranging from a slight profit to a loss.

The projected loss includes a charge of $675,000 to $900,000, related to the write-down of equipment and inventory used in the fuel cell business.

The company said it continues to expect third-quarter sales to range from $1 million to $1.2 million.

Analysts polled by Thomson Financial currently expect, on average, the company to post break-even earnings per share on $1.15 million in revenue.

Separately, Hoku Materials, a business unit of Hoku Scientific Inc., said it signed a supply agreement with Solar-Fabrik AG, a German maker of solar power products, which could generate $120 million to $140 million in sales over several years.

Under the terms of the nonbinding memorandum of understanding, Hoku will supply polysilicon chunks to Solar-Fabrik over a fixed number of years, with predetermined prices on a non-cancelable order. The supply agreement is expected to generate $120 million to $140 million in sales for Hoku over several years, starting in roughly two years.