November 9, 2017
This week Kodak reported its Q3 2017 financial results, revealing a net loss of $46 million (€39.621 million) on revenues of $379 million (€326.4 million).
Revenues for this quarter were down from the same period last year by $32 million (€27.557 million), or 8 percent, with Kodak reporting $379 million (€326.4 million) for Q3 2017 compared to the $411 million (€353.9 million) reported in 2016.
On a constant currency basis, revenues were down by $35 million (€30.137 million), or 9 percent.
“An overall print market slowdown and rising aluminum costs have impacted our commercial print business,” said Jeff Clarke, Kodak Chief Executive Officer. “We are taking immediate actions to accelerate cost reduction and reduce investments to sharpen our focus as we continue to actively pursue changes to the Kodak product and divisional portfolio.”
Kodak ended Q3 with a cash balance of $342 million, a decrease of $28 million from the balance at the end of Q2, a figure that is down $92 million from the balance at the beginning of 2017. Kodak revealed that the “year to date decrease reflects investments in new technologies, working capital changes, capital expenditures including the construction of a new FLEXCEL NX manufacturing line in Weatherford, OK and a contingent consideration payment related to the divestiture of Kodak Alaris in 2013.”
“We expect to generate cash in the fourth quarter of 2017,” said David Bullwinkle, Kodak Chief Financial Officer. “We plan to improve our cash balance through reducing working capital and through cost actions including focusing investments in technologies most likely to deliver near-term returns.”
The company’s Print Systems Division (PSD), its largest division, had Q3 revenues of $232 million (€199.597 million), a decline of $18 million (€15.485 million), or 7 percent, compared with Q3 2016. Operational EBITDA for the quarter was $13 million (€11.183 million), down $14 million (€12.043 million) compared with the same period a year ago. Kodak said that “The decline was primarily due to pricing pressures.”
Kodak’s financials went on to demonstrate that the company’s Enterprise Inkjet Systems Division (EISD), “including the KODAK PROSPER and KODAK VERSAMARK businesses and the investment in ULTRASTREAM inkjet technology,” delivered Q3 revenues of $33 million (€28.374 million), compared with $47 million (€40.403 million) for the prior-year quarter. Operational EBITDA was $1 million (€859 767), an improvement of $9 million (€7.736 million) compared with Q3 of 2016.
For Q3 2017 “the PROSPER business continued to deliver solid performance with year-over-year annuity growth of 9 percent.”
Kodak’s financials press release also revealed that “The company maintained its range for 2017 full year revenue of $1.5 billion to $1.6 billion (€1.289 billion to €1.375 billion) and adjusted its forecast for 2017 Operational EBITDA to be within a range of $60 million to $65 million (€51.573 million to €55.861 million). Several factors are impacting the Company’s 2017 outlook, including:
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