ROCHESTER, N.Y., Nov. 3 – Eastman Kodak Company (NYSE:EK) today reported steady
progress toward becoming a profitable and sustainable digital company as third-quarter digital
earnings improved, excluding non-recurring patent licensing revenue in the prior-year period, and
sales increased in its core digital growth businesses. Total company revenue declined largely
because of lower sales of traditional products, a planned reduction in digital camera sales, and the
absence, compared to the year-ago period, of significant non-recurring patent licensing revenue.
Third-quarter sales were $1.462 billion, a 17% decrease from the year-ago quarter or only 5%
when excluding the benefit of a $210 million non-recurring patent licensing transaction in the yearago
period. Third-quarter digital revenue grew 3% excluding that year-ago intellectual property
revenue and a 25% decline in the company’s Digital Cameras & Devices business, which reflects
the strategic decision this year to trade revenue for improved earnings. Revenue from the core
digital growth businesses – Consumer and Commercial Inkjet, Workflow Software & Services, and
Packaging Solutions – increased 13%, fueled by 44% revenue growth in Consumer Inkjet printers
and ink, and 89% revenue growth in Packaging Solutions. The revenue decline rate for the
company’s Film, Photofinishing and Entertainment Group slowed to 10% in the third quarter.