Kodak CIS Business In Trouble

Rochester Democrat and Chronicle published few notes from today's Kodak Earnings Call. The company CEO Antonio Perez acknowledged that Kodak's new digital cameras announced this week do NOT use Kodak-designed CMOS chips. And Kodak likely will not put much money into that sensor business. Perez said, “It’s a tough time to make investments in a business with projections pretty poor for the next few years.”

But Kodak is not going to let sensors “die on the vine,” said its spokesman David Lanzillo. “We continue to see a lot of potential with the technology,” he said, adding that Kodak continues to look for business partners or other options for its sensor business.

Update: Seeking Alpha published Kodak Q2'2009 Earnings Call. Here is the quote related to the CIS business status:

Ulysses Janice - Buckman & Reed:

On another subject, CMOS, I saw your new video camera you announced. It’s using a 5-megapixel CMOS. I assume it’s your CMOS.

Antonio M. Perez:

No, it’s not ours, no. It’s not ours.

Ulysses Janice - Buckman & Reed:

Not yours?

Antonio M. Perez:

No.

Ulysses Janice - Buckman & Reed:

How is that project going?

Antonio M. Perez:

CMOS is one of the businesses that is in transformation. If you look at the industry, you know the industry is under distress, as you know. If you look at the comments of the large users, such as Nokia, you know, Motorola, Samsung and all the others, they all predict significant declines for next year so it is a tough time to make investments in the business, you know, whose projection is pretty poor for the next few years. So we are still looking for what is the best alternative for the shareholders as far as monetizing those assets.