Eastman Kodak, the troubled photography giant, reported its third-quarter loss more than quadrupled to $222 million while revenue slipped 17 percent to $1.46 billion.
Going forward, CEO Antonio Perez said the company needs the sale of a portfolio of 1,100 patents to survive because of the cash that could bring in.
No one is going to take away the camera from a wireless device, Perez told investors Thursday.
Suggesting that smartphone manufacturers may be eyeing the patent library, he repeatedly declined to provide details about the auction.
It's best not to commit to a number, Perez said. He also declined to provide a timetable by which Kodak expects the auction to end.
Kodak said its cash and equivalents dwindled to $862 million from $957 million. Perez said Kodak expects strong cash flow from fourth-quarter operations but the company, in a filing with the U.S. Securities and Exchange Commission, said it may require as much as $500 million more before long.
The Rochester, N.Y.-based imaging giant hired Lazard to manage the patents sale in July in a bid to raise as much as $3 billion after watching as a syndicate led by smartphone makers including Apple and Research in Motion paid $4.5 billion for patents from Nortel Networks.
When the sale of these portfolios does occur, the company anticipates the proceeds will materially affect its cash balance, Perez said.
On Wednesday, Paul Rooke, CEO of Kodak printers rival Lexmark International, declined to tell IBTimes if his company had even looked at the Kodak portfolio. It's best not to say anything, he told IBTimes.
In late September, Wall Street rumors circulated Kodak might have to file for bankruptcy. Kodak shares plunged and the company was forced to announce it had hired Jones Day, a major law firm known for bankruptcy counsel, for advice.
Perez said Kodak expects to sign at least one more licensing deal with an outside company similar to last month's estimated $60 million one with Imax, the Mississauga, Ontario-based operator of wide-screen theatres, Perez said.
Kodak could realize as much as $300 million in intellectual property licensing in the fourth quarter, Perez forecast.
Kodak shares were down more than 9 percent in midday trading at $1.09, lowering the company's market capitalization to only $293.3 million. Its enterprise value, though, is $816.9 million.
Contact David Zielenziger at firstname.lastname@example.org