On Heels of $75 Million Loss, Kodak Seeking to Sell PROSPER Enterprise Inkjet Business

Enterprise Inkjet Systems Division

The Enterprise Inkjet Systems Division (EISD) had fourth-quarter 2015 revenue of $50 million, up from $47 million in the same period in 2014. Operational EBITDA was a negative $4 million, compared with a negative $8 million in fourth-quarter 2014, for an improvement of $4 million.

For full-year 2015, EISD revenues were $173 million, down from $185 million for full-year 2014. Operational EBITDA for the full year 2015 was negative $26 million, an improvement of $18 million compared to the prior-year period. Kodak says this improvement reflects the reduction in earnings contribution from the KODAK VERSAMARK legacy product, “more than offset” by improvement in PROSPER contribution through consumables growth,  and cost reductions.

Micro 3D Printing and Packaging Division

The Micro 3D Printing and Packaging Division (MPPD) had a “strong year,” driven by the success of the KODAK FLEXEL NX System. Revenues for fourth-quarter 2015 were $31 million, down $5 million compared to the same period a year ago. On a constant-currency basis, revenues declined by $2 million, or 6 percent, versus fourth-quarter 2014. Operational EBITDA for the fourth quarter was “breakeven,” and was flat in fourth-quarter 2014.

For the full year, FLEXCEL NX revenue increased by 12 percent, or 24 percent on a constant-currency basis. The installed base grew by 20 percent year-over-year, ending the year at over 470 FLEXCEL NX CTPs. Plate volume increased by 26 percent year-over-year for the full year.

Operational EBITDA for MPPD improved from negative $1 million, to $9 million, a year-over-year improvement of $10 million, corresponding to a $14 million improvement on a constant-currency basis. Kodak says improvement in this division represents “strong growth” in its FLEXCEL NX packaging business, as well as a reduced loss in Micro 3D printing.

Software and Solutions Division

The Software and Solutions Division (SSD) recorded a “strong performance” in 2015. Fourth-quarter SSD revenue was $27 million, and was essentially flat compared to the same period last year. Operational EBITDA improved from $3 million to $4 million.

For full-year 2015, SSD revenues were $112 million, up from $108 million in the same period last year. Operational EBITDA improved from $3 million to $9 million, a year-over-year improvement of $6 million corresponding to a $9 million improvement on a constant-currency basis.

Kodak says that improvement in this division reflects higher revenue from Kodak Technology Solutions and cost improvements in Unified Workflow Solutions, due to increased operational efficiency.

Consumer and Film Division

Consumer and Film Division (CFD) revenue for fourth-quarter 2015 was $63 million, down from $87 million for fourth-quarter 2014. Operational EBITDA declined from $17 million to $14 million. For the fourth-quarter, revenue and Operational EBITDA included $5 million of brand-licensing from an amendment of an agreement, offsetting expected declines, both as built into Kodak’s plan for the year.

For the full year, revenues for CFD were $265 million, down 25 percent from $352 million, driven by a 41-percent reduction in consumer-inkjet revenue. Operational EBITDA declined from $66 million to $52 million, as Kodak had expected. For the fourth quarter in a row, film recorded a profitable quarter on the basis of Operational EBITDA before corporate costs, which was Kodak’s goal.

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