Overall sales were down 21% to $446m in the period to 30 September. Kodak said the decline was in large part due to the adverse impact of currency exchange, as well as expected declines in revenues from legacy consumer inkjet printer cartridge sales.
Also noted was a one-time gain of $52m from patent licenses in Q3 2014. When adjusted for foreign exchange and these items, revenues decreased by 4% year-on-year.
The $21m net loss compared with net earnings of $19m in Q3 2014. Selling, general and administrative (SG&A) costs totalled $74m.
Q3 operational EBITDA of $39m improved by $9m over the same period in 2014, excluding foreign exchange and non-recurring intellectual property revenues.
Turnover at Kodak’s Print Systems division was down 13% to $278m, while EBITDA was $28m, down from $31m in the same period a year ago. Kodak said volumes of its Sonora process-free plates increased by 41% and the number of customers grew by 19% to more than 2,700.
In the Enterprise Inkjet Systems division, sales were down from $43m to $39m in Q3, compared to the same period last year. On a constant currency basis revenues were reportedly flat.
EBITDA losses at the inkjet wing were $4m, compared with $12m in Q3 2014, for an improvement of $8m. On a constant currency basis, operational EBITDA improved by $9m.
Kodak said results for this division also reflected investments in a new generation of printer systems, which will be unveiled in 2016. Revenues from Kodak’s Prosper inkjet presses jumped by 27%.
Chief executive Jeff Clarke said Kodak was pleased with the strong growth of its strategic product lines.
“Q3 marked significant progress in Kodak’s transformation. Further, Kodak is on track to improve comparable operational EBITDA by 50% to 80% versus last year,” he said.
Chief financial officer John McMullen added: “We expect to generate cash in Q4 2015 and in 2016, with the majority of restructuring and legacy payments behind us.
“We have substantially reduced our cost structure and are in line to achieve a greater than $100m improvement in 2015.
“We are challenged by foreign currency exchange and other macro-economic factors, but we see strong growth opportunities ahead.”
Sales at the Micro 3D Printing & Packaging operation were $32m, flat with the same period a year ago, and EBITDA improved on a constant currency basis to $6m from $1m in Q3 2014.
Kodak said this was driven by the continued growth of the Flexcel NX flexo platemaking systems. Volumes grew by 32%, taking the installed base to over 450.
Software & Solutions had a strong quarter, posting sales of $30m, up 11% on the same period last year. Operational EBITDA doubled from $1m to $2m.
Sales declined from $92m to $64m at the consumer inkjet cartridge and motion film operation. Operational EBITDA there fell from $24m to $12m.
Kodak said these declines were expected and built into the plan for the year with anticipated continued reduction in revenues and earnings from the consumer inkjet printer cartridge business.
Film recorded a profitable quarter on an operational EBITDA before corporate cost basis for the third quarter in a row.
The Intellectual Property Solutions division, which includes the costs for corporate R&D, had zero sales in Q3 and made an EBITDA loss of $4m. In Q3 2014 this division recorded $52m revenue from the licensing of patents.
Kodak said inventions ranging from anti-microbial particles to light-blocking materials will create new growth opportunities.
Operating expenses were $83m in the quarter, a 15% improvement from the prior-year period and Kodak said it is on track to achieve a greater than $100m improvement in 2015.
The company reiterated its 2015 guidance for revenue of $1.8bn-$2bn and operational EBITDA of $100m-$120m.
The cash balance at the end of Q3 was $521m. The company expects to generate cash in Q4 2015 and in 2016, and to end 2015 with a cash balance of $550m-$600m.
Kodak’s share price rose by 2.9% to $16.87 after the results (52 week low: $13.25; high: $23.82).
