Revenue from the company's core digital growth businesses - Consumer and Commercial Inkjet, Packaging Solutions, and Workflow Software & Services - increased by 23%, fueled by agreater than 50% increase in Consumer Inkjet. First-quarter revenue from the company's Film, Photofinishing and Entertainment Group declined by 14%.
"Our strategy is working," said Antonio M. Perez, Chairman and Chief Executive Officer, Eastman Kodak Company. "We saw continued momentum in our strategic digital growth businesses, revenue growth in several of our established digital businesses, and improved cash performance, all of which position us well to achieve our two key financial metrics for the year related to growth and cash.
"I am particularly pleased with the performance of our core digital growth businesses -- Consumer and Commercial Inkjet, Packaging Solutions, and Workflow Software & Services. Revenue growth in these businesses continues to accelerate and in the first quarter grew by a combined 23%, in line with our plan to grow these businesses in aggregate by 40% for the full year," Perez said. "We also saw revenue growth in Prepress Solutions, Electrophotographic Printing, and Document Imaging. We are off to a good start for 2011, and we remain confident that we will complete our transformation into a sustainable, profitable company in 2012."
They're making a transition and milking an old product as cash for the transition. In some ways I'm more afraid of them achieving full success in their digital transformation. They may need film less once they're fully profitable in the other segments and for reasons discussed ad naseum it may not really be possible to sell the film and entertainment division to someone else. I hope they don't just shut it down due to losses and sell off the equipment for scrap. I really hope I'm wrong there... and will continue to buy the Kodak film products that I use while they make them.
First-quarter 2011 cash usage, before restructuring payments, was $449 million, a $7 million improvement from the year-ago quarter. This corresponds to net cash used in continuing operations from operating activities on a GAAP basis of $515 million in the first quarter, compared with net cash used in continuing operations from operating activities on a GAAP basis of $471 million in the first quarter of 2010.
Kodak held $1.3 billion in cash and cash equivalents as of March 31, 2011, compared with $1.5 billion on the same date a year ago.