Wednesday, April 23, 2014

Follow us:
Follow us on Facebook Follow us on Twitter Subscribe to this news feed 

News

Rochester

Kodak Patent Auction Delayed

  • Text size: + -
Rochester: Kodak Patent Auction Delayed
Play now

Time Warner Cable video customers:
Sign in with your TWC ID to access our video clips.

  To view our videos, you need to
enable JavaScript. Learn how.
install Adobe Flash 9 or above. Install now.

Then come back here and refresh the page.

1,100 patents that Kodak believes are worth $2.5 billion are still up for grabs.

Despite reports of significantly low bids, Kodak announced Monday it is extending its timeline for announcing the outcome of its patent auction.

"The delay in the patent sale is probably a good sign," said financial analyst George Conboy of Brighton Securities. "My guess is, this an auction is never over until the hammer falls and if whoever is running the auction wants to extend the time a little bit, it's generally because more bids have come in."

And not just more bids, but Conboy believes higher bids than the $500 million offers reported by the Wall Street Journal. He says bids that low would be disastrous.

"It's possible the bankruptcy court could allow Kodak to extend the sale even a few more days," Conboy said. "It's unlikely to last much more than that."

Instead of patent auction results, Kodak did release some information Monday. It filed with the U.S. Securities and Exchange Commission its projection for where the company will fall financially over the next few years.

"The interesting thing about Kodak's plan is the fact that it comes out today, suggests that management sees a good results from the auction."

Conboy says a break down of the numbers suggest the company, which is currently worth six billion dollars, will be worth around the same in 2017.

"Kodak has put out a five-year projection saying if they do everything right over the next five years, sales in 2017 will be 5.8 billion dollars," says Conboy. "That means even if they grow and do everything right, Kodak in 2017 will be smaller than Kodak was in 2011."

He calls the emergence plan optimistic and that it shows the best case scenario for the company would be to survive.

"A surviving Kodak is a big plus for the Rochester area.''

10.11.12.244 ClientIP: 184.73.87.85, 23.62.6.207 UserAgent: CCBot/2.0 (http://commoncrawl.org/faq/) Profile: TWCSAMLSP