Honolulu-based Hoku Corp said today it has amended a contract to sell polysilicon to one of its customers at spot market rates instead of at a fixed price, a change that could result in lower revenue for Hoku.

Hoku officials said that the contract with China-based Wuxi Suntech Power Co. also was amended to reduce the amount of polysilicon that Hoku would have to supply.

The contract amendment is the latest development faced by Hoku stemming from falling prices for polysilicon, the main component in solar panels. Under the amendment the contract’s fixed pricing terms were deleted and the two sides agreed to negotiate quarterly pricing based on average spot price index for raw polysilicon, according to a filing with the Securities and Exchange Commission. Hoku agreed to begin supplying Suntech polysilicon by Oct. 31.

Prices for polysilicon have seen a sharp fall in recent months, largely due to supply increases, making unattractive the contracts that were signed during times of high prices.
Shares of the company closed up 1 cents at 73 cents today on the Nasdaq Stock Market.