Eastman Kodak said that as a result of its ongoing strategic review process, the company plans to phase out its dedicated capture devices business – comprising digital cameras, pocket video cameras and digital picture frames – in the first half of 2012. Kodak will instead expand its current brand licensing program, and seek licensees in these categories. Following this decision, Kodak’s Consumer Business will include online and retail-based photo printing, as well as desktop inkjet printing.
Kodak has contacted its retail partners, and is working closely with them to ensure an orderly transition. Kodak will continue to honor all related product warranties, and provide technical support and service for its cameras, pocket video cameras and digital picture frames, says the company.
Upon completion of the phase out, Kodak expects to achieve annual operating savings of more than $100 million. Kodak expects to incur a charge related to separation benefits of approximately $30 million resulting from the exit of the business.
In addition to its Consumer Businesses segment, Kodak has a Commercial Businesses segment that includes the Digital and Functional Printing, Enterprise Services and Solutions, and Graphics, Entertainment and Commercial Films units. Kodak’s digital businesses now comprise approximately three-fourths of total revenues.
Kodak’s continuing consumer products and services will include:
- Retail-based photo kiosks and digital dry lab systems. Kodak has more than 100,000 kiosks and order stations for dry lab systems around the world, with some 30,000 of those units connected to popular photo-sharing sites.
- Consumer inkjet printers.
- Kodak apps for Facebook.
- Kodak Gallery (www.kodakgallery.com)
- The Kodak camera accessories and batteries businesses.
- The traditional film capture and photographic paper business.