Eastman Kodak Co. is hemorrhaging money, the latest Polaroid to be wounded by the sweeping collapse of the market for analog film.
In a statement to the Securities and Exchange Commission, Kodak reported that it needs to make more money out of its patent portfolio or to raise money by selling debt.
Kodak has tried to recalibrate operations around printing, as the sale of film and cameras steadily decline, but it appears as though its efforts have been fruitless: in Q3 of last year, Kodak reported it had $1.4 billion in cash, ending the same quarter this year with just $862 million — 10 percent less than the quarter before.
Recently, the patent suits have been a crutch for the crumbling company, adding a reliable revenue to the shrinking pot. But this year the proceeds from this sadly demeaning revenue stream just didn’t pan out. With sales down 17 percent, this money is critical, given the amount of cash being spent on restructuring lawyers and continued production.
Though the company has no plans to seek bankruptcy, one thing is clear: Kodak’s future depends on its ability to make its Intellectual Property into a profit, no matter the method.
It's a far cry from the heyday for Kodak, which was synonymous with photography for generations. The decline has been swift and unceremonious, marked by the death, two years of ago of Kodachrome, photography's greatest film.
Clearly, the question here isn’t really about the death of the last of the analog companies, it’s about film. Nikon and Leicahave a solid gig in lenses and have transitioned smoothly to the digital era with their cameras, but Kodak missed the boat. Now it appears as though they might not make the cut.
[Hat Tip: 'Kodak Warns on Prospects' / Wall Street Journal]
