The group announced plans to sell off its Prosper high-speed inkjet business, including the new Ultrastream technology, in March. It will retain the legacy Versamark operation.
At the time of its Q3 results in November, chief executive Jeff Clarke said that after gaining “a lot of attention and buyer profiles” at Drupa, Kodak still expected to make an announcement about the purchaser by the year-end, with the deal to be concluded in H1 2017.
That timetable has now slipped.
In a statement, Kodak said that discussions were now expected to extend into 2017. Restructuring of the Prosper operation also appears to be on the cards.
Kodak said that it was “currently evaluating ways to streamline the Prosper press business to maximize performance and address market opportunities in publishing, high volume direct mail and packaging.
“In addition, the company is planning to refocus the business to emphasise printhead components and the development of Ultrastream technology.”
Kodak would not make any additional comment beyond its official statement, and no further details were available about what the restructuring would involve and whether it was being carried out at Kodak’s behest or at that of a potential buyer for the business.
EBITDA for Prosper in Q3 declined by $6m (£4.9m), which was in the main put down to costs related to underperforming presses and losses related to the placement of four Prosper presses in the quarter. The operation made a loss of $9m. Over the nine-month period sales increased from $61m to $68m and the loss was $26m (2015 loss: $30m).
Philip Cullimore, president of Kodak’s Enterprise Inkjet and Micro 3D Printing & Packaging divisions, said: “The Prosper business has been very strong over the first nine months of 2016 with the placement of 12 presses, more than in any comparable period. We also saw a 41% increase in annuity revenues in the third quarter, versus the same period a year earlier.”
Kodak has 63 installations of the Prosper press worldwide, and 1,260 installs of its imprinting units. Its stated aim from the outset of the sale process was to find a buyer with the necessary scale to take the business forward.
Clarke had also previously said that the process was "competitive" implying more than one potential purchaser.
Flint Group and Xerox have been mooted as possible trade buyers for the operation.
Kodak’s share price fell by just over 5% to $15.90 on the announcement (52 week high: $17.30, low: $7.56).
