After just releasing its fiscal year 2009 numbers noting a loss of $3 million, Hoku’s actual performance over the past year and serious red ink in six of their past seven fiscal years makes for a far different reality. Over fiscal years 2003-2009, Hoku suffered cumulative losses of $17 million while enjoying a single profitable year in 2006 with a reported profit of $1.3 million. As one might imagine, this reality is not one Mr. Shindo likely discusses during his far and wide meetings with business partners and investors.

And the outlook for Hoku to turn things around is challenging to say the least. While achieving some success in their solar electric design and installation division, Hoku’s principal focus these past several years—the construction of a polysilicon plant in Idaho—has been plagued by financing problems and repeated delays.

In early 2007, Hoku stated that production should commence by the end of that year. At this point, they will be lucky if production starts by 2010 it at all. And if there were ever a rotten time to be getting into the polysilicon business, the next 12 months could be that time as prices continue to drop and a growing global oversupply has photovoltaic manufacturers scrambling to move inventory.

Rewarding mediocre, if not much worse, performance has become epidemic. On Wall Street, companies that have received billions in taxpayer bailout funds reward executives with millions or more. In Hawai’i, Hoku’s executive quartet receives salaries in the healthy six figures, even more in bonuses until recently, despite chronic losses, repeated over-the-horizon promises of profitability and questionable corporate competence. In 2007, when Hoku lost $2.7 million, CEO Shindo received $745,000 in compensation. And in FY 2008, Mr. Shindo took home $1.4 million in salary and bonuses while his company had $4.3 million worth of red ink.

In the last year, renewable energy companies, local and national, enjoyed record revenues and profits. And Hoku Scientific lost millions, again. Let the buyer and investor beware.