Investing.com -- Eastman Kodak Co (NYSE:KODK) swung to a gain during the second quarter of Fiscal Year 2016, as the Rochester-based technology company reported net profits from continuing operations driven by improved productivity and cost improvements from its core businesses.
For the quarter, Kodak reported GAAP net income of $8 million amid considerable increases from its Electrophotographic Printing Solutions (EPS) division and an uptick in SONORA Plate volume. Following an 8% increase in plate volume for the quarter, volume for the process-free plates are now up by more than 16% on an annual basis. Consequently, Kodak's operational EBITDA increased 29% over the last 12 months to $31 million, discounting the expected impacts of a decline in the consumer inkjet business.
At the same time, Kodak finished the quarter with revenue of $397 million, representing a 9% decline from the second quarter in 2015. It came as lower equipment sales and price decreases among its Print Systems Division, slightly offset gains in the company's Micro 3D Printing and Packaging Division. Over the three-month period, revenues for the segment increased by $2 million to $35 million, as sales for its FLEXCEL NX Packaging business increased by 7%.
"I’m pleased with Kodak’s return to profitability and the continued improvement of our quality of earnings,” said Jeff Clarke, Kodak Chief Executive Officer. “While overall revenues declined, the company showed growth in our SONORA Plates, FLEXCEL NX Systems and motion picture film businesses."
Kodak, which has been forced to cut thousands of jobs over the last 15 years due to the transition to digital photography from film, could benefit from the launch of a $610 million hub for advanced photonics manufacturing in Rochester. Photonics, which involves altering tiny particles that make up light and packaging them into various devices used by the health care, defense and telecom industries, could provide a significant boon for the struggling company.
Shares in Kodak inched up 0.02 or 0.12% to close at 16.80. Kodak shares were inactive in after-hours trading.