Revenue from contracts with Nissan Motor Co. helped Hoku Scientific Inc. post a modest profit for the three months ending June 30, compared with a loss for the same quarter a year earlier.

The Honolulu-based maker of fuel-cell membranes reported net income for the first fiscal quarter of $341,000, or 3 cents per diluted share, compared with a net loss of $679,000, or 14 cents per diluted share, a year ago.

"We are pleased to announce our second consecutive profitable quarter," said Dustin Shindo, chairman of the board of directors, president and chief executive officer.

"As we continue to manage the growth of our business, our entire team is focused on building a sustainable pure play supplier to the emerging PEM fuel cell industry. We remain very positive about our long-term business prospects and the general direction of the fuel cell industry."

Total revenue for quarter was $1.1 million, compared with $100,000 a year earlier. The increase was due to the recognition of engineering service and license deferred revenue from the company's contracts with Nissan Motor Co.

At the end of June, Hoku Scientific had $3.1 million in unrecognized deferred revenue, compared with $4.2 million at the end of March. The company's deferred revenue is from contracts with Nissan Motor Co. Ltd. and the Navy. Hoku Scientific said it expects to recognize the majority of this deferred revenue during the remainder of fiscal year 2006.

Last month Hoku sold 3.5 million shares of its common stock in an initial public offering at $6 per share. The underwriters yesterday exercised their option to purchase an additional 182,500 shares of common stock at the same price.