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Kodak Reports Smaller Loss for First Quarter, But Revenues Lower Due to Decline in Legacy Consumer Inkjet

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Enterprise Inkjet Systems Division

Kodak says it Enterprise Inkjet Systems Division (EISD) continued the sale process for the PROSPER business, which is now presented as discontinued operations and no longer included in Operational EBITDA for the division.

EISD had first-quarter revenues of $20 million, down from $23 million for first-quarter 2015. Operational EBITDA was $5 million, a decline of $2 million compared to first-quarter 2015. Kodak says currency fluctuations didn’t have a significant impact on this division. The decline in Operational EBITDA reflects the reduction in revenues and earnings contribution from the VERSAMARK legacy product.

First-quarter results for the PROSPER business include total PROSPER annuity growth of 36 percent and the placement of three new PROSPER systems.

Micro 3D Printing and Packaging Division

Kodak’s Micro 3D Printing and Packaging Division (MPPD) group had “solid results for the quarter,” driven by growth in the KODAK FLEXCEL NX Packaging business, as well as by lower investment in Micro 3D printing as the business shifts from research to commercialization. Revenues for this group were $29 million, compared to $31 million for first-quarter 2015. On a constant-currency basis, Kodak says revenues were flat, which it says reflects the growth of Kodak’s FLEXCEL NX business, offset by the decline in the company’s legacy packaging products. Operational EBITDA improved from $0 million to $1 million, or $3 million on a constant-currency basis.

The firm says its FLEXCEL NX Packaging business continues to represent a significant growth area for Kodak, and that “customers see important advantages in FLEXCEL NX, including improved efficiency in color-management without sacrificing quality, reduced press downtime, faster run speeds and reduced waste and ink consumption.”

FLEXCEL NX revenue was flat year-over-year, or up 5 percent on a constant-currency basis, and Kodak installed 20 new FLEXCEL NX units in its first quarter. Plate volume increased by 10 percent year-over-year for the quarter.

In Micro 3D printing, Kodak says it’s “moving ahead” with a focus on copper-mesh touch sensors and is pursuing a number of RFQ’s, particularly in the industrial and All-in-One segments.

Software and Solutions Division

Kodak’s Software and Solutions Division (SSD) “had continued solid performance” in first-quarter 2015, reflecting, it says, higher revenues from Unified Workflow Solutions on a constant-currency basis, but offset by lower revenues in Kodak Technology Solutions due to “timing of government contracts and the negative impact of foreign exchange (rates).” First-quarter SSD revenues were $22 million, down from $28 million in first-quarter 2015. On a constant-currency basis, revenues declined by $5 million, or 18 percent.

Consumer and Film Division

Consumer and Film Division (CFD) revenues were $56 million, down 22 percent from $72 million in first-quarter 2015. Operational EBITDA declined from $18 million to $7 million, driven, Kodak says, by a 41-percent reduction in consumer-inkjet revenue. For the fifth quarter in a row, film recorded a profitable quarter on the basis of Operational EBITDA before corporate costs.

Intellectual Property Solutions Division

Kodak’s Intellectual Property Solutions Division (IPSD) had Operational EBITDA of negative $4 million, an improvement of $4 million from the negative $8 million for first-quarter 2015. Kodak says the improvement reflects focused reductions in research programs.

Eastman Business Park Division

Eastman Business Park Division (EBP) had revenues of $4 million, up from revenues of $3 million for first-quarter 2015. Operational EBITDA was $0 million, up from negative $1 million in 2015. Kodak says that the “overall operating efficiency of the Park is improving,” and that is has a “healthy pipeline” of potential tenants.

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