Kodak posts Q4 results; shares +2.4% AH

|By:, SA News Editor

In its first earnings report since emerging from Chap. 11, Kodak (KODK) reports Q4 revenue of $607M (-18% Y/Y) and a net loss of $63M (improved from a year-ago loss of $402M).

Sales for Kodak's Graphics, Entertainment, & Commercial Films unit fell 12% to $396M; gross margin dropped 2380 bps to 9.6%. Kodak blames the drop lower graphics and motion picture film demand, and unfavorable graphics pricing/mix.

The Digital Printing & Enterprise unit saw its sales drop 22% to $210M; gross margin fell 220 bps to 13.8%. The discontinuing of printer sales, along with weaker sales of related ink, pressured results.

Some bright spots: 1) Kodak's digital printing ops saw volume growth thanks to "a larger number of placements of commercial inkjet components." 2) Entertainment & Commercial Films is seeing favorable pricing. 3) 450 graphics customers have adopted Kodak's Sonora process-free printing plates.

The company predicts growth within its "strategic technology businesses" will offset declines in mature businesses in 2014. Kodak ended 2013 with $844M in cash and $678M in debt.

2014 guidance: Revenue of $2.1B-$2.3B, and earnings from continuing ops of -$40M to breakeven.