Eastman Kodak Co. said Tuesday it returned to profitability in the second quarter despite a 9 percent drop in revenues.
The company reported net income attributable to Kodak of $7 million for the quarter, an improvement of $31 million from the quarter a year ago. The company posted income from continuing operations of $16 million, also up $31 million.
Kodak logged revenues of $397 million, down from $434 million. The decrease primarily was driven by year-over-year price declines and lower equipment sales in the Print Systems Division, as well as the expected continuing decline in legacy consumer inkjet printer cartridge sales, company officials said.
Print Systems Division, Kodak’s largest division, reported revenues of $258 million, down 9 percent.
Operating expenses totaled $60 million for the second quarter, a 14 percent reduction from the prior-year’s second quarter.
“I’m pleased with Kodak’s return to profitability and the continued improvement of our quality of earnings,” CEO Jeffrey Clarke said. “While overall revenues declined, the company showed growth in our Sonora Plates, Flexcel NX Systems and motion picture film businesses.”
The company ended the quarter with $513 million in cash, flat with the end of the first quarter. A year ago its cash declined by $33 for the quarter.
“Kodak demonstrated improvement in our cash flow and overall balance sheet in the second quarter,” said David Bullwinkle, the company’s new chief financial officer. “We continue to be committed to generating cash in 2016.”
The company said it remains committed to completing the sale of the Kodak Prosper business, which the company now reports as discontinued operations.
The company reiterated 2016 revenues guidance of $1.5 billion to $1.7 billion
Kodak stock (NYSE: KODK) closed Tuesday at $16.80, near the top of its 52-week high of $17.31.
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