Meet the New Scaled Down Eastman Kodak (EKDKQ)

Eastman Kodak Company (EKDKQ) is showing the ‘in with the new’ model it wants to operate in.  Frankly, this implosion as a future turnaround just doesn’t seem much better in bankruptcy compared to before bankruptcy. How Antonio Perez is still in charge is a total mystery. 

As part of its ongoing strategic review process “and commitment to drive sustainable profitability through its most valuable business lines” the company notes these changes:

• Phase out its dedicated capture devices business in the first half of 2012, comprising digital cameras, pocket video cameras and digital picture frames. Kodak will instead expand its current brand licensing program, and seek licensees in these categories.
• Kodak’s Consumer Business will include online and retail-based photo printing, as well as desktop inkjet printing. 
• Kodak says that it will “continue to honor all related product warranties, and provide technical support and service for its cameras, pocket video cameras and digital picture frames.”  Good luck.
• Kodak expects annual operating savings of more than $100 million, and it will incur a separation benefits charge of about $30 million as it exits these.
• The Commercial Businesses segment includes the Digital and Functional Printing, Enterprise Services and Solutions, and Graphics, Entertainment and Commercial Films units. Kodak’s digital businesses now comprise approximately three-fourths of total revenues.         

The company claims to still have a strong position in the personal imaging market. Unfortunately, this long slow death march doesn’t seem over.  Those OTC shares are still worth $0.44 today and we have no personal expectation of any left over value unless it can monetize those patents beyond the wildest expectations.

JON C. OGG