The key here is that revenue is declining. There are basically three scenarios. 1) Revenue may asymptotically approach zero. 2) Revenue may stabilize at some relatively low level. 3) Revenue may reverse and go up.
Under scenario 1 the company eventually goes bankrupt. Under scenario 2 it all depends on where the stable value is for revenue and also whether it is enough to sustain a business. Related to this is the question of whether a large company that is a market leader in its segment can shift gears and operate as a small company that is an also ran in its segment. Under scenario 3 the future looks relatively bright, though success is not assured.
As to profits, I would not put too much emphasis on one quarterly report, or even one yearly report. One-time events and various short term fluctuations have too much effect to put much weight on short term results. Longer term trends are more important, and besides, cash flow is even more important than profits.
What seems clear, in part because Kodak themselves tell us this, is that they intend to use profits generated by their film business to finance a shift to different businesses, such as digital imaging. It is by no means clear that they can succeed in a new line of business, particularly since they don't seem to be offering anything that puts them ahead of the established competition.
As to selling off the film business, a shrinking business is not going to attract a top dollar offer. It seems to me that they would maximize their profit by keeping the business and milking it for all they can before it becomes essentially worthless. At that point they might spin it off in a management buyout, which could then either go the way of Agfa (kaput) or Ilford (possibly here for the long term.) Of these two I suspect that the Agfa model is more likely. I hope I am wrong.