Cash Continues To Disappear At Kodak

Kodak

Kodak continues to burn through cash as it restructures itself.

The company reported cash on hand fell to $862 million from $957 million last quarter and $1.4 billion in September 2010. The digital camera firm hopes seasonal sales will boost liquidity headed into holiday sales, but bankruptcy concerns persist.

It reported a third quarter loss of $222 million, or -$0.83 a share, missing estimates by 39 cents. Overall revenue fell 5% to $1.5 billion, year-on-year.

Some key points from the release:

  • Kodak lowered full year guidance to a loss of as much as $400 million, from previous estimates of a gain of $50 million.
  • Revenue guidance for 2011 was lowered to $6.3 to $6.4 billion, from $6.6 to $6.7 billion
  • Film, Photofinishing and Entertainment Group revenue declined 10%
  • Sales in its digital camera business fell 25%
  • Graphic Communications revenue increased 1% as commercial ink jet sales grew

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