Eastman Kodak Co. posted a profit for its fiscal first quarter thanks to the sale of its digital imaging patent portfolio, and it also announced some key milestones in its effort to emerge from bankruptcy.
The Rochester, N.Y., company said it plans to file its reorganization plan with a bankruptcy court Tuesday that will outline its road map for recovery.
It also said it plans to sell its personalized and document-imaging businesses to its United Kingdom pension plan for $650 million as part of an agreement that settles $2.8 billion in claims the retirement fund had sought from the photography pioneer. Eastman Kodak said it plans to use some of the proceeds to emerge from bankruptcy and to grow its commercial imaging business.
The company, founded in 1880, filed for bankruptcy protection at the beginning of 2012. Since then it has sold off several businesses and said it would shut others so it can focus on commercial and packaging printing.
Eastman Kodak reported it earned $283 million for the first quarter, versus a $366-million loss in the first quarter last year. Its revenue from continuing operations was $849 million, down 9 percent from $928 million last year.
The latest quarter includes a $535-million gain from the sale of its digital-imaging patent portfolio, which was partially offset by a $77 million non-cash goodwill impairment charge related to the patent sale.
The quarter reflects improved performance by its commercial imaging segments, Eastman Kodak said. Its digital printing and enterprise business had a loss of $8 million, versus an $89 million loss in the same quarter last year, as it lowered costs and focused more heavily on its consumer inkjet business. Its graphics, entertainment and commercial segment delivered a $38-million profit, versus a loss of $84 million in the prior year, helped by licensing revenue, improved prices and cost cuts.
Chairman and chief executive Antonio M. Perez said the results show that Kodak is on the right track.
"As we continue to drive improvements in our business to complete our transformation, I am more confident than ever that we will succeed," Perez said in a statement.