Kodak’s search for buyers for its 1,100 digital imaging...
Kodak’s search for buyers for its 1,100 digital imaging patents is “going well,” with many interested parties, CEO Antonio Perez said Thursday in a conference call. Perez said a sale would have “a material affect” on Kodak’s year-end cash balance…
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if it occurs this year. Kodak Thursday slashed its forecast for year-end cash balance to $1.3 billion-to-$1.4 billion from $1.6 billion-to-$1.7 billion as it widened its projected annual loss from continuing operations to $400 million to $600 million from $200 million to $400 million. Kodak has forecast selling $200 million in non-core assets and has an agreement on a $120 million deal with an undisclosed buyer, company officials said. It also expects to meet a target for $250 million to $350 million in annual IP licensing revenue, Perez said. Meanwhile, Kodak’s consumer digital group swung to a $90 million Q3 operating loss from a $64 million profit a year earlier, which included a $210 million patent licensing agreement. Revenue plunged to $408 million from $664 million a year earlier, Kodak said. Digital camera sales slipped to $199 million from $267 million. A 25 percent decline in digital camera and devices revenue was offset by a 13 percent gain in “core digital,” including commercial and consumer inkjet printers, the company said. Sales of consumer inkjet printers rose 44 percent, the company said. Kodak’s film, photofinishing and entertainment units posted $15 million in operating income, down from $28 million a year earlier as sales fell 10 percent to $389 million. In graphics communications, sales increased one percent to $665 million as operating profit improved to $55 million from $35 million a year ago. Sales of Kodak’s Prosper commercial inkjet printers increased 40 percent in Q3, but “higher than planned start up costs” and “delays in revenue recognition” tempered surging sales, company officials said. Kodak remains “confident” of success in its International Trade Commission (ITC) complaints filed against Research In Motion and Apple, it said. The digital imaging patent at the heart of the cases of been tested more than 30 times in legal challenges and emerged victorious, Kodak officials said. The U.S. Patent Office also has upheld the patents’ validity, Perez said. The patent describes a method for previewing images in a digital camera. Kodak filed the complaint against Apple and RIM in April 2010, and a hearing before an administrative law judge is scheduled for Wednesday, Kodak officials said.