Kodak: Melting Ice Cube With No Growth And Hidden Liabilities Offers Substantial Downside
ShortOpinion • 19 Comments
ShortOpinion • 19 Comments
Tue, Aug. 9, 4:19 PM
Wed, Jun. 15, 5:49 PM
- John McMullen, until now Kodak's (NYSE:KODK) CFO, has been hired by 3D Systems (NYSE:DDD) to be its CFO, effective July 1. McMullen replaces David Styka, who was only named CFO in May 2015. Styka will "remain with the company to provide operational and financial support to Management."
- Kodak has named David Bullwinkle, a 12-year company vet and Kodak's financial planning/analysis and IR chief since 2010, its new CFO.
- 3D's CFO change shortly follows the resignations of COO Mark Wright and marketing chief Cathy Lewis, and arrives two months after former HP printing chief Vyomesh Joshi was named CEO.
Thu, May 5, 4:33 PM
Tue, Mar. 15, 5:40 PM
- Along with its Q4 results, Kodak (NYSE:KODK) has announced it's in talks to sell its Prosper enterprise inkjet hardware ops, which provide imprinting systems and presses.
- CEO Jeff Clarke: "To achieve its full economic potential, PROSPER will be best leveraged by a company with a larger sales and distribution footprint in digital printing markets." The sale decision comes with the broader printing industry pressured by the impact of online and mobile content viewing and sharing (just ask HP).
- The one-time camera giant also plans to focus its metal mesh touch sensor business solely on copper metal mesh, after previously investing in both silver and copper development. Exec Philip Cullimore: "Based on feedback from industry participants, it’s clear our fully additive copper metal mesh is the winning approach in terms of overall cost, setup cost and scalability to larger screens — where we see the most significant opportunities." Last year, struggling UniPixel ended its touch sensor partnership with Kodak.
- In its Q4 report, Kodak has guided for 2016 revenue of $1.5B-$1.7B (down from 2015's $1.8B) and operational EBITDA of $130M-$150M (up from 2015's $122M). The forecast excludes the Prosper and the silver metal mesh business. Kodak ended 2015 with $547M in cash and $680M in debt.
- Kodak's Q4 results, earnings release
Tue, Mar. 15, 4:23 PM
- Eastman Kodak (NYSE:KODK): Q4 Net income of $24M
- Revenue of $467M (-12.2% Y/Y)
Fri, Mar. 11, 1:52 PM
- Kodak (KODK +2.6%) has struck a materials partnership with Carbon3D, a startup working on a 3D printer that uses a photochemical process rather than a standard mechanical process. The alliance is said to pair "Carbon’s breakthrough material development capabilities with Kodak’s long-standing experience in material formulation and integration into complex systems to drive continued innovation of novel materials"
- Carbon raised $100M last year - Google and Autodesk are among its investors. The company claims its printers (when they arrive) will be able to print functional parts at up to 100x the speed of mechanical printers.
- Kodak is higher on a good day for stocks. Q4 results arrive on Tuesday afternoon.
Tue, Jan. 26, 12:58 PM
- Andrew Evenski, head of Kodak's (KODK +6.4%) Entertainment & Commercial Film unit and an employee for over 30 years, is retiring from the company.
- Following Evenski's retirement, exec Wayne Martin will taken an "expanded role" as head of Kodak's Industrial Film & Chemicals business. Steve Bellamy, head of Kodak's Motion Picture & Entertainment Group, will "remain responsible for marketing, sales and film services for the entertainment industry."
- Kodak's volatile shares are up strongly a day after closing $0.93 above a 52-week low of $7.56. Last week, the company announced its 2015 revenue is now expected to be at or near the low end of prior guidance, and its operational EBITDA at or near the high end of prior guidance. The year-end cash balance is believed to be $550M ($300M in the U.S.). Official Q4 and 2015 results are expected in early March.
Nov. 4, 2015, 12:48 PM
- Kodak (NYSE:KODK) CEO Jeff Clarke has disclosed he bought 20K shares last Thursday at $12.18. In addition, Blackstone's GSO Capital unit (a major shareholder) bought ~175K shares via several purchases at prices between $12.23-$12.41.
- Kodak is recovering a chunk of the losses seen last week amid news of a settlement with industrial printing inkmaker Collins InkJet.
Oct. 27, 2015, 2:58 PM
- Kodak (KODK -9.8%) has tumbled to new 52-week lows amid news the company has settled a suit with industrial printing inkmaker Collins InkJet regarding the use of Collins' inks with Kodak's Versamark printer.
- The settlement, which could weigh on Kodak's high-margin ink revenue, approves the use of Collins ink with Versamark systems, with Kodak providing refurbishment services for the hardware whether it's using Kodak or Collins ink. To aid customers thinking of buying from Collins, Kodak will "expand the ink index files for its DH90 and DH91 printheads to support a range of Collins inks."
Oct. 26, 2015, 12:45 PM
Oct. 22, 2015, 4:20 PM
- Eastman Kodak (NYSE:KODK): Q3 Net loss of $21M.
- Revenue of $446M (-21.5% Y/Y).
Aug. 4, 2015, 4:04 PM
- Eastman Kodak (NYSE:KODK): Q2 Net loss of $23M.
- Revenue of $458M (-13.3% Y/Y)
Jul. 20, 2015, 3:05 PM
- Kodak (NYSE:KODK) has fallen to the lowest levels seen since the company emerged from bankruptcy. 710K shares have been traded thus far, far above a 3-month daily average of 130K.
- The commercial imaging/printing product maker is now down 34% YTD. Over the weekend, the AP ran a column noting Kodak has rented unused space on its 2-square mile Rochester, NY campus to 58 companies (including many startups), courting them with " the promise of plentiful utilities, its own railroad and unique access to Kodak's specialty technical and industrial capabilities."
May 8, 2015, 3:45 PM
- Healthcare IT giant Cerner (CERN -4.6%) is selling off after missing Q1 revenue estimates (while posting in-line EPS). Q2 and full-year revenue guidance of $1.175B-$1.225B and $4.65B-$4.8B is respectively below consensus estimates of $1.24B and $4.91B; EPS guidance of $0.51-$0.52 and $2.07-$2.15 is in-line with estimates of $0.52 and $2.12.
- Commercial printing/film product maker Kodak (KODK -5%) is lower after reporting a 12.5% Y/Y revenue drop; a 12% decline in Print Systems Division sales (59% of revenue) weighed on results, as did a 19% drop in Enterprise Inkjet Systems Division revenue. Full-year revenue guidance of $1.8B-$2B and operational EBITDA guidance of $100M-$200M has been reiterated.
- Gaming headset maker Turtle Beach (HEAR -6.6%) has sold off after posting mixed Q1 results. Q2 guidance is for revenue of $23M-$25M (compares with a $24.5M consensus) and a net loss of $7.5M-$9.5M (compares with a $10.6M Q1 loss); full-year headset revenue guidance is reiterated.
- Car-buying site TrueCar (TRUE -6.1%) is down after posting in-line Q1 results and reporting a 34% Y/Y increase in sold units to $168.6K. Q2 guidance is for revenue of $67M-$69M ($68.6M consensus) and 205K-210K units; full-year guidance is for revenue of $280M-$290M ($284.3M consensus) and 825K units.
- Previously covered: Rubicon, KEYW Holding, Sierra Wireless, Amber Road, Nvidia
May 7, 2015, 4:02 PM
- Eastman Kodak (NYSE:KODK): Q1 Net loss of $58M
- Revenue of $427M (-12.5% Y/Y)
Apr. 27, 2015, 4:30 PM
- UniPixel (NASDAQ:UNXL) has "exercised its right to terminate" its InTouch touch sensor manufacturing and supply agreement with Kodak (NYSE:KODK). UniPixel says it "concluded that the risks required to achieve a viable business model in a reasonable time frame were too great, particularly under an agreement that shared any profits generated." No termination penalties are expected. (8-K filing)
- The decision follows UniPixel's purchase of Atmel's XSense touch sensor assets. Kodak has issued a statement declaring it's "committed to moving forward independently with development of copper mesh touch sensor technology," and that it "continues to believe that copper mesh technology for large-size touch screens, together with the silver-halide based touch sensors for phones and tablets that Kodak has been developing separately, will give the company a broad offering in the rapidly growing touch screen market."
- UniPixel has fallen to $5.15 AH.
- Update (8:40PM ET): UniPixel closed AH trading down 41.9% to $3.39.