This photo taken Nov.1, 2011, shows ink cartridges for Kodak printers in Little Rock, Ark., Best Buy store. Eastman Kodak said Thursday, Nov. 3, 2011, its third-quarter loss widened to $222 million on slumping digital camera and film sales. (AP Photo/Danny Johnston)
This photo taken Nov.1, 2011, shows ink cartridges for Kodak printers in Little Rock, Ark., Best Buy store. Eastman Kodak said Thursday, Nov. 3, 2011, its third-quarter loss widened to $222 million on slumping digital camera and film sales. (AP Photo/Danny Johnston)
ROCHESTER, N.Y. (AP) ? While surging sales of inkjet printers are helping Eastman Kodak Co., the embattled picture-taking pioneer said Thursday its third-quarter loss widened to $222 million on slumping digital camera and film sales.
The photography and printing company also projects losses for all of 2011 to be at the lower end of its previous forecast and revenues to be lower than it had expected.
Its shares slipped 5 cents, or 4.2 percent, to $1.15 in premarket trading.
Its third quarterly loss in a row ? its ninth such loss in the last three years ? amounted to 83 cents per share in the July-September period. That compares with a loss of $43 million, or 16 cents per share, a year earlier.
Analysts surveyed by FactSet expected a smaller loss of 42 cents a share for the latest quarter.
Revenue fell 17 percent to $1.46 billion from $1.76 billion a year ago.
Kodak's shrinking cash reserves fell to $862 million in the quarter from $957 million in June.
The company set a year-end cash target of $1.3 billion to $1.4 billion that excludes any intellectual-property licensing deals. It previously forecast a year-end cash pile of $1.6 billion to $1.7 billion.
Kodak has poured hundreds of millions of dollars into new lines of inkjet printers that are finally on the verge of turning a profit. Home photo printers, high-speed commercial inkjet presses, workflow software and packaging are viewed as Kodak's new core.
Sales of those businesses rose by a combined 13 percent in the quarter, fueled by 89 percent growth in packaging solutions and 44 percent growth in home printers and ink. Kodak said it expects the consumer printer to become profitable in the current quarter.
The four businesses remain a bright spot in the 131-year-old company's long and painful drive to recast itself into a reliably profitable player in the turbulent digital-imaging arena. Kodak is hoping they will more than double in size by 2013, accounting for 25 percent ? or nearly $2 billion ? of all sales.
In the meantime, mining its inventions for revenue has become indispensable. Since July, Kodak has been hawking a portfolio of 1,100 digital-imaging patents that many analysts think could fetch $2 billion to $3 billion. Since 2008, Kodak has generated almost $2 billion in licensing fees and royalties from some of those key patents.
Based in Rochester, N.Y., Kodak turned picture-taking into a hobby for the masses. It developed the world's first digital camera in 1975 but failed to capitalize quickly on its new-wave know-how in digital photography.
Its workforce has plunged to 18,800 from 70,000 in 2002.
Kodak now expects its segment losses in 2011 to be closer to $300 million, which is within its previous forecast range of $100 million to $300 million in losses. It expects revenue to be $6.3 billion to $6.4 billion, down from a previous forecast of $6.4 billion to $6.7 billion.
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