updated 03:50 pm EDT, Thu November 3, 2011
Litigation appears to have proven unsuccessful
Kodak has quietly warned that it may have difficulty continuing operations if it cannot fetch additional funding. In its quarterly 10-Q filing with the Securities and Exchange Commission, the company reported a 10 percent drop in cash holdings, down from $957 million to $862 million, and slashed its cash balance forecast for the end of the year by $300 million.
Amid falling revenues from digital cameras and other consumer products, the company has left itself reliant on income from intellectual property lawsuits and patent sales while it attempts to revamp its operations to focus on printer sales.
In the SEC filing, the company suggests it will attempt to continue licensing its technology if it cannot sell its digital imaging patent portfolio "at an appropriate price." If its financial situation continues to deteriorate, it may scale back its investments or sell off some of its business segments.
"There is uncertainty regarding whether the Company can, and the Company can provide no assurance that it will, successfully execute the actions listed above," the SEC filing reads.
Kodak has achieved varying levels of success in its litigation attempts, however some of its lawsuits, including notable cases against Apple and RIM, have yet to be resolved. The SEC filing corroborates earlier leaks, which suggested it will need to raise up to $900 million in new funding to avoid being put out of business. [via Wall Street Journal (sub. required)]