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Kodak in a century to take difficult transition-up sell patent, patents, transformation

Foreign media today wrote that, although very early involved in digital imaging technology development, but fear of film business affected, Kodak missed the development opportunities of the digital camera industry.
Despite nearly 30 years of restructuring, and began to focus on the development of printer and cartridge business in recent years, but the company is still struggling.
Share prices slump in 30 years, Kodak has gone through a series of restructuring, but still struggling. In the film the 131 years of company\'s many business have been competitors in the market away, but when the digital camera at a time when the rise, it has failed to grasp the opportunity.
Today, Kodak is trying to turn its back into a printer and cartridge manufacturer and faster burning speed. Kodak announced on June 26, results showed that the 5th consecutive quarter of losses. The company\'s bond rating to junk status, two-year bond prices also fell to below US $ 0.80, indicates that the market considers its debt capacity at risk. Kodak the already sluggish stock prices this week were hammered, on Wednesday, falling 10% per cent to $ 1.77.
In the 1950 of the 20th century, the Kodak\'s shares have never dropped below US $ 2. Kodak by prosecuting those who violate their patents to get income, but informed sources, as this year, patent settlement declined, Kodak began active last month authorized patents. Analysts believe that Kodak\'s patent portfolio value is higher than the company\'s current market capitalization of less than 500 million dollars.
It also underlines the Kodak\'s huge decline in the share price. Insiders, bankers call Kodak said last month, a private equity investment companies who wish to buy a big stake of Kodak. Since then, Kodak CEO Mr Perez said (Antonio Perez) convened at the weekend meeting of the Board, and adopted a decision to block hostile takeovers.
Kodak announced on August 1 a poison pill: If external investors to buy a big stake, shareholders can buy at a discount stock. Some former executives think, the Kodak Company should be split, and after the split of the business is sold separately. But Mr Perez said refused the offer, and believes that this will make the company\'s pension liability issue becomes more complex. But not so strongly to the attitude of the Board. Kodak\'s lead independent Director Rick · Braddock (Rick Braddock) said as Kodak is fully deploying recovery strategy, so splitting does not make sense, but he also added: &ldquo and I do not exclude any possible.
” Pressure Mr Perez said that cash, he remained on the company\'s restructuring plan is very confident.
He said although the company is cash only: us $ 957 million, but benefited from the intellectual property rights, asset disposal income and sales promotion in the second half, the company will reach $ 1.6 billion cash balance by the end of at least. In his view, the company cash spending increased sharply this year, reflects the timing of the pension plan and intellectual property status of the settlement agreement, and regardless of the fundamentals of enterprise.
He also said that Kodak printer market share is rapidly expanding, once established enough user base, and began by cartridge income generation, the profitability of the business will have a very strong. In addition, Kodak suing Apple and RIM phones earlier this year whose picture preview patent violations. The case was first rejected by the judge, but because of the judge who in retirement before completion of the second instance, so the case was referred to another judge. Mr Perez said that, this lawsuit can be brought to Kodak compensation income of us $ 1 billion.
But Apple and RIM declined to comment. Wall Street remains worried about the performance of Kodak. Deutsche Bank analyst Chris · huaitemoer (Christ Whitemore) said “ whether cash flows, income growth, or overall growth this quarter was disappointing.
” Print business Mr Perez said Kodak 5th CEO in the last 30 years. To prevent performance decline, Kodak has tried a variety of businesses, including pharmaceutical, bathroom cleaners, drug test equipment, but none worked. Serve once in the Hewlett-Packard\'s years of Mr Perez said the selected printer. He will be in this area and established businesses such as HP, Canon and Seiko Epson competition.
According to United States data for market research firm IDC, the three companies control the global printer market share of about three-fourths. Kodak began selling consumer printer in 2007. Mr Perez said of the strategy is to change the method of industry usage, providing expensive printer cartridges and low prices.
He hoped that the use of nano-film manufacturing technology to produce a not blocked printer ink nozzles, which replaced each time you fill ink nozzles can be avoided, thereby reducing costs. According to the IDC data, Kodak\'s 2010 one printer market share has dropped from around the world raise per cent in 2008 to 3%. Kodak\'s strategy is to provide subsidies for the printer until the user up sales in quantities sufficient to produce a large amount of cartridges.
However, due to the ink cartridge replacement costs lower, allowed Kodak to sell printers at a faster than the competitor\'s price. Internal sources, some errors to slow the pace of transformation of Kodak. Kodak printers had a little early because some design flaws and replacement costs.
Until problem resolved, the economic crisis is not a move. Kodak continues to support Mr Perez said of the Board and its strategy of difficult transition. In 2009, the company persuaded Mr Perez said of the Board to give up retirement schemes, and with his contract renewal to the end of 2013. Braddock said “ Kodak is the strategic transformation of business transformation of one of the most difficult I\'ve ever seen.
” For many years, Kodak has always been with lucrative film business profits.
With low cost of film and camera, Kodak photography from a noble technology into a entertainment where everyone can enjoy. But in the 1980 \'s, challenges faced foreign film companies, and the rise of digital technology, Kodak has gradually got into trouble.
Kodak claimed in 1975, invented the world\'s first digital camera, and spent hundreds of millions of dollars developing digital technology, but fear of film sales were affected, failed to develop digital business. Kodak employees in recent years have beenReduced. In 2010, the company reaches 16300 Rochester headquarters staff, but by 2010 but only 7,100 people.
During this time, its global workforce decreased from 54800 to 18,800. Kodak front-line staff believes that the company has repeatedly failed due to a large extent isolated corporate culture.
A retired Director, said there was an external consultant in the early 1990 \'s criticized the Kodak corporate culture, but the company\'s management has ignored this. Serving in Hewlett Packard after 25 years, Mr Perez said joined Kodak in 2003, as President and COO. He is responsible for inkjet printers in HP business and had tried to buy Kodak.
After the switch, he will be in the printer industry experience to the Kodak. After patent income generation in 2005 as Kodak CEO, the Board established three goals for Mr Perez said: reduced film business, build new digital companies, for the management of pensions and health costs of retirees. Each task takes a lot of money, within 4 years time for reorganization of film business alone spent $ 3.4 billion.
But the company\'s operating cash flow but not enough to support such a high cost. Kodak from accumulation and development began in the early days of film and coating technology-related patents. The company\'s total number of patent is more than 11,000 items, many new patents are concentrated in the picture preview, digital world. In support of the costly digital strategy, Mr Perez said started foreign authorized Kodak digital imaging patents and patent litigation.
2008-2010, this strategy provides the company with the income of us $ 1.9 billion. A member of the Board of Kodak, reduce patent litigation income allows it to consider selling more patents. Board of Directors has been approved at a meeting in mid-July this plan.
Kodak also plans to sell or let to hire in Rochester office occupies an area of 2.5 million square feet (about 230,000 square meters) manufacturing centre. Balance of Mr Perez said that he took office, hung out around the company, and with many internal “ UTO ” communication, in order to understand the present situation of the company. In the process, he learns that the company is developing an ink-jet project.
Because the Kodak film industry background, fully capable of producing a print not blocked the ink in the nozzles. Mr Perez said that he initially submitted a number of digital service recommendations to the Board, including scanners, high-tech display panel, and new sensor technology. &Amp;ldquo I had submitted 11 projects. I said to the Board of Directors, at least 30% project useless, but I don\'t know what is what.
&Amp;rdquo he said. All 11 projects were approved by the Board, but Mr Perez said management and then cancel the two of them. The company\'s fate now depends mainly on the print business.
Kodak initially foreseen, its consumer printer business in 2010 to achieve fiscal balance, but later to postpone this date until 2011. Status a recent departure of a former Business Executive, Kodak had overestimated himself in the printer market penetration, is also a lot of people doubt whether in 2011 to achieve fiscal balance.
Fierce competition has been price formed the crackdown to a printer, Kodak faced another obstacle. The second quarter of this year, Kodak consumer revenue increased 48% of ink-jet printer and ink cartridges. &Amp;ldquo; we are scramble all share. &Amp;rdquo; Braddock said.
Mr Perez said it means that, if the company no longer provides subsidies for customers who purchase the printer immediately profitable, but it will have a negative effect on efforts before, is not conducive to attracting enough user base of the cartridge. Kodak commercial printer business development is even more lag. Room as big, and the company plans to sell a different content can print thousands of pages per minute of equipment, but there are only dozens of customers, and hand made such complicated machines are required.
The second quarter of this year, Kodak commercial group of loss expanded from us $ 17 million in the same period last year to $ 45 million. Mr Perez said that he plans to continue development of printer business.
In order to maintain staff morale, he also shared with the staff of his previous experience as runner: in the 10,000 meters in a long-distance race, last 2000 meters is always the most difficult. &Amp;ldquo; you may have lost a game at this time, so to keep running. &Amp;rdquo he said. (Text/Sina technology)