Kodak: Melting Ice Cube With No Growth And Hidden Liabilities Offers Substantial Downside
ShortOpinion • 19 Comments
ShortOpinion • 19 Comments
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
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
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.
Apr. 10, 2015, 3:05 PM
- Today's notable tech gainers include IP licensing firm VirnetX (VHC +6%), custom parts maker Proto Labs (PRLB +4.6%), printing plate/commercial film maker Eastman Kodak (KODK +3.9%), cloud HR software vendor Paylocity (PCTY +3.7%), cloud telecom expense software vendor Tangoe (TNGO +4.2%), and cloud tech support software vendor Support.com (SPRT +6.7%). The Nasdaq is up 0.4%.
- Only a few tech companies are posting major declines. The group includes Chinese online video platform Youku (YOKU -5.7%) and mainframe/high-end server maker Unisys (UIS -3.4%).
- Following a rough 2014, VirnetX is up 34% in 2015; 15.9M shares were shorted as of March 13. Proto Labs has broken out of the narrow range shares have traded in since mid-February. Support.com's gains come a day after the company disclosed a new contract with Comcast. Paylocity is erasing the losses seen yesterday following a BofA downgrade. Kodak is up 13% since posting Q4 results on March 16.
- Youku, quite volatile lately, is giving back a chunk of Wednesday's big gains. Unisys' decline comes ahead of its April 23 Q1 report. On Wednesday, the company announced it's supplying high-end servers and cybersecurity software to NASA through the agency's SEWP V contract (covers multiple suppliers, worth up to $20B over 10 years).
- Previously covered: 3D Systems, Alcatel-Lucent, Nokia, LinkedIn, GoDaddy, FireEye, Turtle Beach, Mavenir/Mitel, Gigamon, Synacor
Feb. 26, 2015, 6:07 PM
- UniPixel (NASDAQ:UNXL) states in its Q4 report the company and Kodak (NYSE:KODK) have "achieved integration yields in the high 80 percentile" with a previously-disclosed for an InTouch Sensor solution meant for a tablet OEM partner. "Our tablet customer understands the touchless plating line modifications we’re undertaking and remains patient with the process. We are currently working with the customer in planning follow-on integration trials."
- UniPixel also states a previously-disclosed all-in-one PC OEM partner "recently approved UniPixel’s all-in-one product design, and UniPixel is now working with two module integrators approved by the customer." Using Kodak's manufacturing facility, UniPixel plans "initial commercial shipments" to the OEM in Q2.
- Also planned for Q2: Commercial production of UniPixel's Diamond Guard hard-coat resin, and the modifying of an operational InTouch Sensor plating line to make its web handling touchless.
- UniPixel had no revenue in Q4, or in any other quarter within 2014. Q4 SG&A expenses fell 6% Y/Y to $2.88M, and R&D expenses fell 14% to $2.65M. The company's cash balance fell by $2.9M Q/Q to $23.7M.
- Shares have risen to $5.45 AH.
- UniPixel's Q4 results, PR
Feb. 3, 2015, 1:51 PM
- Kodak (KODK +4.3%) states German printing services firms Europrint Medien and Druckteam Berlin have adopted its Sonora XP process-free printing plates.
- Kodak asserts Sonora XP removes "all chemistry, water, equipment, energy, and waste related to the [print] processing or clean out step," and also delivers better operational efficiencies (by boosting process control) than processed plates.
- Shares remain just ~$2 above a 52-week low of $17.40.
Nov. 7, 2014, 1:45 PM
- Though UniPixel (NASDAQ:UNXL) is still dealing with "a limited number of challenges" related to starting mass-production for its InTouch sensors, the company expects "low volume sampling to our development customers in [Q4] and ramping to commercial production in 2015."
- Citing the progress seen for an InTouch roll-to-roll pilot plating line at partner Kodak's (KODK +0.3%) NY facility, UniPixel is "in the process of moving plating lines from the Texas facility to the Kodak facility where they will be eventually commissioned for production."
- The company also states it's working with Kodak on "an initial [InTouch] development project for the tablet market while working closely with a certain tablet manufacturer," and claims it's "engaged with an all-in-one PC OEM customer and their touch module integrators" regarding development efforts for an InTouch product aimed at the all-in-one PC market.
- UniPixel's cash balance fell by $3.6M Q/Q in Q3 to $26.8M. SG&A spend rose 18% Y/Y to $2.9M; R&D spend fell 5% to $2.7M.
- UniPixel and Kodak will host an analyst day on Dec. 4.
- Q3 results, PR
Nov. 5, 2014, 10:49 AM
- Kodak (NYSE:KODK) managed to deliver (slightly) positive Y/Y revenue growth in Q3, as a 13% increase in Graphics, Entertainment, & Commercial Films (GECF) revenue to $400M offset a 17% drop in Digital Printing & Enterprise (DP&E) revenue to $164M.
- GECF revenue was boosted by $51M in non-recurring IP licensing revenue, as well as rising digital plate sales. Motion picture film sales saw a "significant decline."
- DP&E revenue fell due to the ongoing decline in Kodak's consumer inkjet printing ops. On the other hand, sales of FLEXCEL NX plates (used for package printing) rose 34%.
- Gross margin rose to 28% from 19% a year ago. SG&A spend fell 28% Y/Y to $67M, and R&D spend 17% to $20M. Nonetheless, CEO Jeff Clarke suggests Kodak needs to make further cost-cutting efforts.
- The company "expects to meet projections for 2014 of revenue between $2.1 and $2.3 billion and Operational EBITDA between $145 and $165 million."
- Q3 results, PR
Aug. 7, 2014, 5:58 PM
- UniPixel (NASDAQ:UNXL) says it's "working closely" with Kodak (NYSE:KODK) to transfer the pilot plating technology for its InTouch sensors from its Texas facility to the companies' NY production facility.
- The pilot line is said to be producing "appreciable quantities of sensors on a weekly basis to support yield ramp activities and sampling for our development customers." UniPixel adds it's making "measured progress" in improving yields.
- UniPixel and Kodak have provided InTouch samples to an unnamed tablet maker, and have "engaged an all-in-one PC OEM customer and their touch module integrators."
- Q2 GAAP opex rose 29% Y/Y to $6.07M. R&D spend totaled $2.99M, and SG&A $3.08M. UniPixel ended Q2 with $30.4M in cash, down from $34.4M at the end of Q1.
- Q2 results, PR
Jun. 25, 2014, 5:54 PM
- Citing a "technical breakthrough in roll-to-roll plating process," UniPixel (UNXL) says it has achieved roll-to-roll pilot production for its InTouch sensor film.
- The company claims it now has "a fully-functional, roll-to-roll pilot production line comprised of a plating line at the company's Texas facility, and printing, final testing and packaging at the Kodak (KODK) facility" in Rochester, NY.
- UniPixel will now focus on improving manufacturing yields. Its announcement coincides with an operational update CC (webcast).
- With 40% of the float shorted as of June 13, a short squeeze is quite possible tomorrow.
Jun. 17, 2014, 2:47 PM
- After Intel stated in a June 1 presentation UniPixel (UNXL) has begun production of its roll-to-roll metal mesh touch sensor film in Q2, UniPixel contacted Intel to tell them production hasn't begun, says SA author Richard X. Roe. Intel later removed the comment from its presentation.
- Roe doesn't expect a June 25 operational update call (previous) to reveal major progress towards mass-production, and declares "a failure to start production would simply be admission of another delay," given UniPixel and partner Kodak (KODK) have forecast commercial production would start by July 1.
- He adds recent CEO comments and the website of a UniPixel sub-contractor suggest improving roll-to-roll plating yields remain a challenge, and states the company's Diamond Guard film is "apparently nothing more than a commodity off-the-shelf acrylic coating."
Mar. 19, 2014, 4:50 PM
- 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.
Dec. 16, 2013, 5:42 PM
Eastman Kodak Co. provides directly and through partnerships with other innovative companies hardware, software, consumables and services to customers in graphic arts, commercial print, publishing, packaging, electronic displays, entertainment and commercial films, and consumer products markets.... More
Sector: Consumer Goods
Industry: Electronic Equipment
Country: United States