Q1 Report: Kodak Revenues Drop 27%

Kodak CEO Antonio Perez says the company is on track for reorganization, despite the latest earnings report.

Following the release of the company's first quarter report, the company said that it was focused on its most profitable businesses and cost controls which it said showed an increase cash balance for Kodak.

However, financial analysts who looked at the latest earnings report say the numbers are not optimistic.

Kodak's Q1 report showed a loss of $366 million. That is higher than the previous year's quarter results, which came in at a loss of $246 million.

Also, revenue dropped 27-percent to $965 million.

Kodak says the drop in revenue was in part to the company exiting the digital camera business, a decline in traditional business, and a loss of $61 million dollars in tax refund agreement payments for patent licensing.

Financial analyst Doug Hendee says Kodak needs to show more signs of improvement moving forward.

"My synopsis is we have to wait and see but these numbers don't look good. It's a show me story right now, they have to show that they are a sustainable business going forward and with this quarter I am certainly not seeing that," said Doug Hendee, a financial analyst with Brighton Securities.

Perez said in a statement, "We will continue to exploit our competitive advantage at the intersection of materials science, digital imaging, and deposition technologies, Our commercial and consumer products and services continue to offer unique technologies and market leading value propositions."

Perez went on to say "As demonstrated by our performance in the first quarter, Kodak's reorganization is proceeding according to plan. As we move forward, we are continuing to make progress in realizing each of these fundamental objectives in our Chapter 11 filing."

Kodak also said it had boosted it's liquidity and has made progress in the process of selling off some digital imaging patents.

The company plans to focus on profitable business segments like its digital printing presses.

Kodak is back in U.S. Bankruptcy Court on Monday, April 30.