Kodak is not dead yet

Kodak is not dead yet ❌ With a profit of $88 million in FY22, Kodak is on the way for a mega comeback Give it a read πŸ‘‡

2/14/20244 min read

In 1888, the Kodak camera was patented by Eastman. The camera was an immediate success with the public and launched a fad of amateur photography. Eastman's advertising slogan, "You Press the Button, We Do the Rest".

Kodak had a 70% market share in its business segment in America in the early days. What about today? Look at this -

Camera space is taking over now and Kodak doesn't have any major space anymore in the camera industry.

But if we are witnessing the disappearance of Kodak cameras for us (direct consumers) that doesn't mean the company is dead. Well, the majority think another way and they believe that the company's gates are now closed.

What if I give you the evidence?

  • Kodak's revenue in FY22 : $1.20 Billion USD

  • 50 million USD gross profit in the third quarter of 2023

  • On September 3, 2013, Kodak announced that it emerged from bankruptcy

  • For the past 3 years, they are in positive cash flow

In FY22, their Traditional Printing business alone generated 711 million dollars in cash.

The image above shows that their margins are good enough, Kodak's operational EBITDA is low and revenue is incredible, you can witness their operational cost is higher. Kodak's profit was just $88 million over $1.20 billion in revenue, that is because of their debt and negative assets.

Total debt on the balance sheet as of September 2023: $0.49 B

Kodak failed in the adaption of digital transformation and by 2011, Kodak was rapidly using up its cash reserves, stoking fears of bankruptcy. It had $957 million in cash in June 2011, down from $1.6 billion in January 2001.

Here is the breakdown of the timeline of Kodak :

  • January 19, 2012 - Kodak filed for bankruptcy protection

  • In January 2013, the Court approved financing for Kodak to emerge from bankruptcy by mid-2013

  • During bankruptcy proceedings, Kodak sold many of its patents for approximately $525 million to a group of companies (including Apple, Google, Facebook, Amazon, Microsoft, Samsung, Adobe Systems, and HTC) under the names Intellectual Ventures and RPX Corporation.

  • On September 3, 2013, Kodak announced that it emerged from bankruptcy as a technology company focused on imaging for business.

  • Kodak shifted its focus to B2B, Traditional printing, and Advanced Materials and Chemicals.

  • Kodak established multiple spin-off companies to get more cash flow and to find a way out.

  • Despite the pivot to digital technology, film remains a major component of Kodak's business. The company continues to supply film to the motion picture industry after signing new agreements with major studios in 2015 and 2020.

  • They also held the rights to the Photo Paper, Photochemicals, Display, and Software businesses (PPDS) but sold these to Sino Promise, China in 2020.

  • At the end of 2016, Kodak reported its first annual profit since the bankruptcy of 78 million USD

  • The past 3 years have been profitable for the company, Kodak earnings were 88 million USD in FY22

"Kodak's cash performance continued to show improvement for the year-to-date period," said David Bullwinkle, Kodak's CFO. "For the nine months ended September 30, 2023.

How Kodak did this comeback?

They got a lens for a wider view of business opportunities, they were already strong enough in Traditional Printing, Flim for cameras and chemicals. These results were outcomes of high-quality R&D.

They used their R&D facilities and launched multiple products, but not directly under a roof.

Establishing new spinoff companies was a move of a king by Kodak, they launched new products under new spinoff companies to get cash intake with diversification.

Kodak is currently arranged in four business reporting segments: Traditional Print, Digital Print, Advanced Material and Chemicals (including Motion Picture), and Brand (Brand licensing of consumer products produced by third parties).

Kodak is the primary provider of film stock to the American motion picture industry and also provides packaging, functional printing, graphic communications, and professional services for international businesses.

The Kodak brand is licensed to several consumer products produced by other companies, such as the PIXPRO line of digital cameras manufactured by JK Imaging.

Since 2015, Kodak has had five major business divisions: Print Systems, Enterprise Inkjet Systems, Micro 3D Printing and Packaging, Software and Solutions, and Consumer and Film.

Kodak announced the initiative to create Kodak Pharmaceuticals in 2020, but the last update was on September 22, 2020, over the development.

Post-COVID times, Kodak witnessed growth, and profitability is growing at a sustainable rate.

"Kodak delivered strong performance in 2022, growing revenue in consecutive years for the first time in decades, launching new products, and investing in our future despite ongoing inflationary and supply chain challenges," said Jim Continenza, Kodak's Executive Chairman and CEO.

Kodak's New Launch

KODAK PROSPER ULTRA 520 Inkjet Press and KODACHROME Inks were introduced by Kodak at the Hunkeler Innovationdays event.

PROSPER ULTRA 520 Press which is at 152 meters per minute (500 feet per minute) print speed in the highest quality mode provides 12,950 B2 sheets per hour, 2x to 3x faster than the competition. Reduce labor costs and improve customer satisfaction without compromising quality.

Kodak's new launches are the result of their 100+ years legacy and research team which resulted in 79,000 worldwide patents.

Kodak is not dead yet, we are witnessing a 132-year-old company standing again and being profitable after its biggest downfall.

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