However, chief executive Jeff Clarke refused to be drawn on a likely timescale for the completion of the sell-off, which was announced in March, and would not reveal how many potential buyers were looking at the business.
“I remain confident that there is solid demand for this exceptional technology. In a competitive [sale] process it’s very important to manage it in a way that our bankers want us to do. We’re not going to comment publicly until we have a deal to announce,” Clarke stated.
“We did say we expected it to happen this year, and there’s five months left in this year.”
Xerox, Canon and Flint Group have all been mooted as potential purchasers with the necessary global scale to take the business forward.
Clarke said that Drupa had provided an important showcase for Prosper and for its new Ultrastream technology, which is included in the sale.
“There was significant demand for this product [Prosper] coming out of Drupa and I think it was very important that prospective buyers had the chance to kick the proverbial tyres, see it in action, and hear from a long list of pleased customers. We believe it holds great promise for the ultimate buyer.”
He also said that Kodak had signed eight letters of intent from companies that intend to integrate Ultrastream into their product lines at the show.
The Prosper operation had sales of $25m (£19.3m) during the period, and reduced its year-on-year losses by $1m to $7m, despite absorbing $3m of Drupa costs. Kodak said the annuity rate for Prosper inkjet systems was up 35% to an annualised run rate of $47m.
In the three months to 30 June Kodak posted sales down 9% to $397m (on continuing operations, excluding Prosper), and posted EBITDA of $34m, which was flat year-on-year but a $3m improvement excluding exchange rate differences.
The group turned around last year’s net loss of $23m to post net income of $8m for the quarter.
Clarke said he was pleased with the “improved quality of earnings.”
“We were very pleased with the Q2 results given the variability and expense relative to the investment in Drupa.
“We were hoping for a good Drupa and it came in a little better. In general, it was a good Drupa and it does improve our confidence for the full year.”
Clarke also outlined the likely impact of Brexit on the business.
“The headwind of the currency movement of that event is about $3m EBITDA for this year. I think we’ll be able to work our way through that headwind.”
At Kodak’s Print Systems Division (PSD) sales fell 9% to $258m although EBITDA increased by 10% to $22m. Sonora plate volumes grew by 8% but NexPress sales slowed ahead of Drupa, although that part of the PSD business maintained profitability.
At the Enterprise Inkjet Systems Division (EISD), which now comprises the legacy Versamark business, sales were down 9.5% to $19m, with flat EBITDA of $5m.
Kodak installed 12 Flexcel NX CTP systems during the quarter, and Flexcel plate volumes grew by 16% year-on-year at its Micro 3D Printing & Packaging Division (MPPD), where sales grew by $2m to $35m. However, EBITDA halved to $2m due to unfavourable foreign exchange rates and Drupa costs.
Delayed orders due to Drupa the timing of government contracts impacted sales at its Software & Solutions Division (SSD), where sales slumped by 22% to $21m, resulting in a loss of $2m.
The group’s Consumer and Film Division pushed up EBITDA from $8m to $10m on sales down 8% at $61m.
The Intellectual Property Solutions Division, which recently partnered with Alibaba on anti-counterfeiting technology, reduced its losses by $2m to $4m.
Lastly, Kodak’s Eastman Business Park brought in revenues of $3m (2015: $4m) and EBITDA halved to $1m. However, Kodak said it had a “healthy pipeline” of potential tenants.
Kodak is predicting sales of between $1.5bn-$1.7bn for the full year, with EBITDA of between $135m-$150m.
The group's share price fell 5.4% to $15.89 on the news, but subsequently recovered to $16.20.
