Fuel-cell component maker Hoku Scientific Inc. yesterday lowered its earnings outlook and announced plans to lay off "a few" employees in Hawai'i.

The Kapolei-based company, which has benefited from Hawai'i's technology tax breaks, would not specify how many jobs were cut, but said financial charges related to the job cuts are not expected to be material. Hoku said it had 27 employees before the job cuts.

In addition, Hoku lowered the range of its third-quarter earnings guidance, partly because of a write-down of equipment and inventory. The company said it now expects a third-quarter loss of $1.2 million to $1.4 million, down from its previous guidance that called 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.

"Due to a less-promising outlook regarding the amount and timing of revenues in our fuel-cell business, we have decided to redirect resources from our fuel-cell business into our solar and polysilicon businesses, and, accordingly, we are writing down the value of certain items of fuel-cell research equipment, production equipment and inventory as well as curtailing head count in this area," Dustin Shinto, Hoku chairman, president and chief executive officer, said in a written statement.

"Although we are disappointed in our revised third-quarter guidance, we are very excited with the progress we are making in our solar and polysilicon businesses."

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.

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.

Hoku plans to manufacture the polysilicon chunks at a new facility it is planning in Idaho.

Hoku shares closed up 3 cents at $3.14 yesterday on the Nasdaq Stock Market.