Rochester, N.Y. – Photography giant
is in danger of missing bill
payments if it cannot find a taker for some of its intellectual property, the
company said in filing with the U.S. Securities and Exchange Commission (SEC),
Thursday.
According to a report in the USA Today Friday, the latest news on
the company’s ongoing financial ailments came from the filing, which warned that
Kodak may not be able to continue operations at some point in the next 12
months if it does not sell or license its digital imaging patent portfolio.
The plan is part of a number of “alternative actions,” being
explored, including taking on up to $500 million in new debt.
Despite the statement to the SEC, CEO Antonio Perez said he is
optimistic that the company will complete the sale of its digital-imaging
patent portfolio.
The filing came as Kodak issued its latest quarterly earnings for
the period ending Sept. 30. Kodak reported total revenue of $1.5 billion, down
17 percent from the same quarter a year ago. After expenses, Kodak showed a loss
of $222 million, which was more than five times the loss it reported from the
period last year.
Kodak said it now expects revenue for the year of $6.3 billion to
$6.4 billion, down from earlier forecast of $6.4 billion to $6.7 billion, along
with overall losses of $400 million to $600 million, up from earlier estimates
of $200 million to $400 million.
Kodak attributed the decline in sales to a decision to scale back
the point-and-shoot camera business. Kodak in 2010 also showed one-time income
of $210 million from patent licensing. Without that payment, sales would have
been down 5 percent, the company said.
Kodak ended the quarter with $862 million in cash and cash equivalents,
or roughly half of what it had a year ago.
On the positive side, the company said it is expecting growth in
the fourth quarter from its all-on-one inkjet printer business, and revenue
from both commercial and home desktop inkjet printing, packaging printing and
workflow software – was up 13 percent over a year ago in the third quarter.
However, renew from the film, photofinishing and entertainment
group was down 10 percent to $389 million from a year ago.
