Press release from the issuing company
Eastman Kodak Company, in response to rumors circulating in the capital markets, issued the following statement:
"Kodak is committed to meeting all of its obligations and has no intention of filing for bankruptcy. The company also continues to actively pursue its previously announced strategy to monetize its digital imaging patent portfolio. Kodak remains focused on meeting its commitments to customers and suppliers, and on delivering on its strategy to become a profitable, sustainable digital company.
"It is not unusual for a company in transformation to explore all options and to engage a variety of outside advisers, including financial and legal advisers. Jones Day is one of a number of advisers that Kodak is working with in that regard."
CAUTIONARY STATEMENT PURSUANT TO SAFE HARBOR PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Certain statements in this document may be forward-looking in nature, or "forward-looking statements" as defined in the United States Private Securities Litigation Reform Act of 1995. For example, references to the Company's expectations regarding the following are forward-looking statements: revenue; revenue growth; gross margins; earnings; cash generation and usage; potential revenue, cash and earnings from intellectual property licensing; liquidity; bankruptcy; potential proceeds from asset sales.
Actual results may differ from those expressed or implied in forward-looking statements. Important factors that could cause actual results to differ materially from the forward-looking statements include, among others, the following risks, uncertainties, assumptions and factors as described in more detail in the Company's Annual Report on Form 10-K for the year ended December 31, 2010, Quarterly Report on Form 10-Q for the quarters ended March 31, 2011, and June 30, 2011, under the headings "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Cautionary Statement Pursuant to Safe Harbor Provisions of the Private Litigation Reform Act of 1995" and in other filings the Company makes with the SEC from time to time:
• Continued weakness or worsening of economic conditions which could continue to adversely impact our financial performance and our liquidity;
• Whether we are successful with the strategic investment decisions we have made which could adversely affect our financial performance;
• Whether we effectively anticipate technology trends and develop and market new products to respond to changing customer preferences which could adversely affect our revenue and earnings;
• The competitive pressures we face which could adversely affect our revenue, earnings and market share;
• Whether our commercialization and manufacturing processes prevent product reliability, cost and quality issues which could adversely affect our revenue, earnings and market share;
• Whether we are successful in licensing and enforcing our intellectual property rights or in defending against alleged infringement of the intellectual property rights of others which could adversely affect our revenue, earnings, expenses and liquidity;
• Whether we can raise sufficient proceeds from the sale of our digital imaging patents;
Whether we can generate or raise cash and maintain a cash balance sufficient to fund our continued investments, capital needs, restructuring payments and service our debt;
• Whether our pension and postretirement plan costs and contribution levels are impacted by changes in actuarial assumptions, future market performance of plan assets or obligations imposed by legislative or regulatory authorities which could adversely affect our financial position, results of operations and cash flow;
• Whether we are successful in attracting, retaining and motivating key employees which could adversely affect our revenue and earnings;
• Changes in currency exchange rates, interest rates and commodity costs which could adversely impact our results of operations and financial position;
• Whether we are able to provide competitive financing arrangements or extend credit to customers which could adversely impact our revenue and earnings;
• Our reliance on third party suppliers which could adversely affect our revenue, earnings and results of operations.
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By Mark Pomerantz on Oct 04, 2011
No intention? Maybe. No option? Probably.
By Vytas Barsauskas on Oct 04, 2011
We appreciate that there are many challenges that Kodak is facing; technology shift, economic downturn and increased global competition among many other issues. It is time Kodak management comes out and clearly articulates a strategy with an implementation timeline that allows the investing public to make an informed decision on how they view Kodak as a sustainable business. The market does not know how to value the current Kodak business model.
By Murray Oles on Oct 04, 2011
Kodak has always been a great marketing company. Successful digital companies are highly innovative. If Kodak really wants to transition the company, perhaps they should move the headquarters to Silicon Valley and start changing the culture from the top down.
By Kevin Karstedt on Oct 05, 2011
It is like trying to assemble a complicated puzzle without having the box cover to tell you what it should look like. Kodak has some very good IP and digital patents (those puzzle pieces) but as Murray suggests, Kodak management (those at the table trying to assemble those precious pieces) need to have the "vision" to see what the finished product needs to look like. Do they? Can they? Will they? And will it happen in time? I hope so...
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