The company lost $538,000, or 3 cents a share, compared to a year-ago loss of $1.3 million, or 8 cents a share.

Revenue for the nine months ended December 31, 2007 was $2.6 million versus $4.2 million for the year-ago period. Hoku lost $2.2 million, or 13 a share, during the first nine months of the fiscal year, versus a loss of 635,000, or 4 cents a share, for the same period in 2006.

Hoku said lower fuel cell business revenue was partially offset by revenue from photovoltaic systems installations during the three months ended Dec. 31.

In separate news Hoku said the state Public Utilities Commission is considering a proposal to operate a solar-power system for Hawaiian Electric.

Hoku would own and operate the system to be completed later this year and charge Hawaiian Electric for the power generated at a fixed rate over 20 years.

The system to be installed on the roof of Hawaiian Electric's Ward Avenue facility would be one of the largest single-site solar systems on O'ahu. It would have a generation capacity of at least 167 kilowatts.