Hyliion (US:HYLN)2024-05-01 18:18Financial Data and Key Metrics Changes - The total net loss for Q1 2024 was $15.6 million, a decrease from $28.8 million in Q1 2023, primarily due to the shutdown of the powertrain business [43] - Operating expenses for Q1 2024 were $19 million, down from $31.9 million in Q1 2023, with the decrease attributed to the powertrain shutdown [13] - Interest income for Q1 2024 was $3.4 million, approximately flat compared to the previous year [14] - Cash and investments at the end of Q1 2024 totaled $264 million, indicating cash expenditures of $35 million during the quarter [15] Business Line Data and Key Metrics Changes - Excluding powertrain-related expenses, expenses for KARNO research and development and SG&A were $14.6 million [35] - The company expects total cash expenditures for the KARNO generator business in 2024 to be on the high end of the $40 million to $50 million estimate, reflecting a rapid ramp-up in investments [37] Market Data and Key Metrics Changes - The company has executed a non-binding LOI with H2 Energy for the adoption of up to 10 KARNO generators, which can produce approximately 2 megawatts in aggregate [25] - The company has identified four target markets for the KARNO generator, including EV charging, waste gas utilization, prime power applications, and mobility applications [26][27][28] Company Strategy and Development Direction - The company is focused on the commercialization of the KARNO generator, with plans to begin shipping units to customers later in 2024 [10][45] - A partnership with BayoTech has been established to ensure a reliable hydrogen supply chain for customers, enhancing the value proposition of the KARNO generator [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the progress made in customer engagement and product development, emphasizing the importance of getting units into customers' hands in the coming quarters [41][47] - The company maintains its guidance for 2025, expecting to ramp up KARNO generator deliveries and revenue, with total sales projected in the low-double-digit millions of dollars [38] Other Important Information - The company repurchased 8.7 million shares for $11.3 million as part of a $20 million share repurchase program [36] - The company anticipates that powertrain-related operating expenses will be negligible moving forward, with cash payments expected to be in the low-single-digit millions [44] Q&A Session Summary Question: What is the outlook for the KARNO generator deployment? - Management indicated that they expect to begin deploying KARNO generator units to customers in late 2024, although the timing of payments remains uncertain due to various factors [45]