Tags: kodak | loss | patent | auction

Kodak's Loss Widens ahead of Patent Auction

Friday, 03 August 2012 04:34 PM

Eastman Kodak Co on Friday posted a wider second-quarter loss, as it prepares for a crucial auction in which it hopes to sell more than 1,100 patents to help repay its bankruptcy creditors.

The Rochester, New York-based company, which is shifting its business toward printing from photography, said its quarterly loss increased 67 percent to $299 million, or $1.10 per share, from $179 million, or 67 cents, a year earlier.

Excluding costs related to its reorganization, the second-quarter loss totaled $139 million, Kodak said.

Revenue fell 27 percent to $1.08 billion, reflecting what Kodak called its exit from the digital camera business, lower sales of traditional products, and a stronger U.S. dollar.

Kodak is selling more than 1,100 digital imaging patents, which cover technology used in digital cameras, smartphones and tablets.

It has said it has earned more than $3 billion in revenue since 2001 from licensing these patents, which comprise roughly one-tenth of its patent portfolio.

An auction of the patents is scheduled to begin on Aug. 8, and Kodak said a winning bidder should be named by Aug. 13.

Kodak remains in litigation with several companies over some of its patents, including Apple Inc, the maker of the iPhone, iPod and iPad; and Research in Motion Ltd , which makes the BlackBerry.

Kodak filed for Chapter 11 protection from creditors on Jan. 19 after failing to keep up as consumers and rivals shifted to digital photography from film photography.

Shares of Kodak closed Friday up 4.5 cents at 55.5 cents on the Pink Sheets.

The case is In re: Eastman Kodak Co, U.S. Bankruptcy Court, Southern District of New York, No. 12-10202.

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Friday, 03 August 2012 04:34 PM
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