August 12, 2021 5:00 PM, EDT

Hyliion Reports Net Loss in Q2

Dennis Gallagher Hired as COO
Hyliion truckHyliion

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Electrified powertrain systems developer Hyliion Corp. reported a net loss and no revenue in the second quarter but ended the period with $617 million total available liquidity to fund ongoing product development.

In related news, Hyliion announced it hired Dennis Gallagher as chief operating officer.

For the period ended June 30, Hyliion reported a net loss of $23.2 million, or negative 13 cents per share, compared with a net loss of $4 million, negative 5 cents, a year earlier.

It did not report any revenue.

Hyliion 2Q21 Earnings Prese... by Transport Topics

But the Austin, Texas-based company founded in 2015 said initial revenue was expected to begin flowing this year as commercialization of its hybrid axle starts up.

Hyliion is developing two products.

The first to market in the second half of 2021 will be its improved hybrid electric product — electric axle, proprietary battery pack, controller, auxiliary power unit and in-cab display with optional aerodynamic devices. Hyliion expects to recognize revenue on shipments of the system after the product launch.

“With this new design, we have significantly streamlined the installation process by consolidating a significant amount of our component into a larger battery box,” CEO Thomas Healy said during the earnings call. “We are also reducing the net system weight and have improved the overall systems efficiency.”

He added the company has been focused on the improved reliability and installation of the hybrid system. “In this new version, we also refine the software and cloud connectivity to deliver over-the-air updates more efficiently, giving us the ability to push out the latest version of our proprietary software and performance algorithms, including these software improvements is a feature that enables automatic traction assist for drivers.”

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Further back in the product pipeline is Hyliion’s Hypertruck ERX (extended range) technology that can use a generator fueled by natural gas, or eventually hydrogen, to charge batteries, allowing for an extended range of 1,000 miles, Hyliion has said.

The company recently announced an enhanced configuration of its Hypertruck ERX that can travel over 75 miles on battery-power only and has plug-in, fast charging capabilities.

With the enhanced option Hypertruck ERX-equipped production trucks will qualify for zero-emission vehicle credits by meeting California’s Advanced Clean Truck rule, which takes effect in model year 2024, according to the company.

Meanwhile, research and development spending was $13.4 million, an increase of $10.8 million compared with a year earlier.

“SG&A [selling, general and administrative] spending was centered around the continued buildout of necessary infrastructure to advance our commercialization initiative, operational capabilities and the addition of talent to accomplish these goals,” said Sherri Baker, chief financial officer.

For the quarter, SG&A expense was $10.1 million, an increase of $9.2 million compared with a year earlier, she said.

The company reported it added 59 employees in the quarter, exceeding its goal, in its automotive engineering, advanced software algorithms and control engineering, supply chain, operation and other functions.

Gallagher was most recently president, since October 2017, of Jacobs Vehicle Systems, a Danaher company.

Healy said: “Dennis will lead all efforts in the organization that are focused on the commercialization and delivery of our products to the market.”

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