I think the bad news is:

Film, Photofinishing and Entertainment Group first-quarter sales were $367 million, a 14% decline from the year-ago quarter, driven by continuing industry-related declines. First-quarter loss from operations for the segment was $15 million, compared with earnings of $22 million in the year-ago period. This decrease in earnings was primarily driven by significantly increased raw material costs, particularly silver, and industry-related declines in volumes, partially offset by cost reductions across the segment.

In any case I wisk Kodak a very profitable future. If they are profitable in other segments, they can better care about the film segment, e.g. waiting for the film rebound, planning an advertising campaign for film, or planning a sale of technology and machinery to somebody willing to enter the market. If they are not profitable, film is going to suffer first.

In any case at the moment the $15m operating loss from film operation is small if compared to the $249m total operating loss for the quarter. It's not film which will make Kodak sink if ever. And it's not ditching film operations that will improve the situation much.

It is also to be noted that even if the operating profit is in red for the quarter, the bottom line is still positive ($55m or $0,21 per share) due to non-operation items. Most of those are probably non-recurring items, but it's better for Kodak to be profitable also for this quarter than not.