Saturday, August 4, 2012

Eastman Kodak (PINK: EKDKQ) Posts Increased Loss in Q2 Amid Restructuring Costs

Bankrupt company, Eastman Kodak (PINK:EKDKQ) reported a loss for its second quarter, higher than in the year-ago period, on restructuring costs.

Kodak filed for bankruptcy protection in January this year and since then has been undertaking a structuring exercise that it hopes will bring it back into profitability in 2013.

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For the June quarter the company, once a dominant player in the photographic films industry, reported a loss of $299 million, up from the $179 million a year earlier. Restructuring costs accounted for $160 million in expenses.

Revenue fell to $1.08 billion, down 27 percent from a year ealier as the company has stopped making digital cameras, pocket video cameras and digital picture frames.

The company is now focusing on its photo printers, commercial inkjet presses which it has said are its core business.

Kodak is the story of a company which was unable to keep pace with the digital revolution as Japanese camera marks innovated fast and went beyond traditional photography equipment.

Under the bankruptcy restructuring the company will phase out its digital camera business and hopes to license out its brand. The consumer business will focus on printing.

Incidentally Kodak is also locked in a patent battle with Apple, even as it hopes to sell more than 1100 patents to raise cash.

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Apple has laid claim to some of these patents and is trying to prevent the company from selling or licensing them out.

Shares of Kodak closed up 8.82% on Friday to 55.5 cents. For the week, the stock more then doubled. 

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