September 27, 2011
The company’s attempts to move into printer manufacturing have caused its stocks to fall by 70 percent since the start of the year.
Kodak’s attempts to become an inkjet printer manufacturer, despite the company’s background in photography and film, have been marred by a series of revelations about the company’s falling stock value.
The New York Times reports that the company attempted to borrow $160 million at the end of last week, which added to mounting concerns about its stability, and shares lost a quarter of their value as a result.
The business’s stock price has fallen by nearly 70 percent since the beginning of the year, and some are blaming current CEO Antonio Perez for attempting to move the company towards inkjet printer manufacturing, whilst also attempting to sell the company’s patent portfolio.
The company stated: “The purpose of the revolving credit facility is to bridge timing differences between cash outflows and inflows, which is a common practice at many corporations. As we have said in the past, our cash flow is highly seasonal. This is a tool to help manage that seasonality.”
Chris Whitmore, an analyst at Deutsche Bank Securities, said to the NYT that the company’s problems began with their invention of the digital camera, which they soon fell behind in sales of to other manufacturers.
“Most people didn’t expect them to be drawing down their credit facility at this point. These guys invented this thing that is going to put them under.
“What did they do with that invention? What do you do? It’s a big challenge.”