Eastman Kodak Co (KODK) 2014 Q2 法說會逐字稿

Good day ladies and gentlemen, and welcome to the Eastman Kodak Q2 earnings conference call.

女士們先生們，美好的一天，歡迎來到伊士曼柯達第二季度財報電話會議。

(Operator Instructions)

（操作員說明）

I would now like to turn the call over to David Bullwinkle. Sir, you may begin.

我現在想把電話轉給 David Bullwinkle。先生，您可以開始了。

Thank you. Good afternoon. My name is David Bullwinkle, Director Global Financial Planning and Analysis and Investor Relations for Kodak. Welcome to the second-quarter Kodak earnings call. At 4:00 PM this afternoon Kodak filed its quarterly report on Form 10-Q and issued its release on financial results for the second quarter of 2014. You may access the presentation, webcast, today's call on our investor center at investor.Kodak.com.

謝謝。下午好。我叫 David Bullwinkle，柯達全球財務規劃和分析及投資者關係總監。歡迎來到柯達第二季度財報電話會議。今天下午 4:00，柯達提交了 10-Q 表的季度報告，並發布了 2014 年第二季度的財務業績。您可以在我們的投資者中心 investor.Kodak 訪問演示文稿、網絡廣播和今天的電話會議。 com。

During today's call we'll be making certain forward-looking statements as defined by the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to a number of uncertainties or risk factors which are clearly described in the Company's 10-K and in the Company's quarterly filings, and which are qualified by the Safe Harbor provisions in our filings. We advice listeners to read these important cautionary statements in their entirety, as any forward-looking statement needs to be evaluated in light of these important risk factors or uncertainties.

在今天的電話會議中，我們將根據 1995 年美國私人證券訴訟改革法案的定義做出某些前瞻性陳述。這些前瞻性陳述受公司 10 條中明確描述的許多不確定性或風險因素的影響-K 和公司的季度文件，並且符合我們文件中安全港條款的要求。我們建議聽眾完整閱讀這些重要的警示性聲明，因為任何前瞻性聲明都需要根據這些重要的風險因素或不確定性進行評估。

In addition, the release just issued and the presentation provided contain certain measures that are deemed non-GAAP measures. Reconciliations to the most directly comparable GAAP measures have been provided with the release and with the presentation on our website in our investor center at investor.Kodak.com. Speakers on today's call will be Jeff Clarke, Chief Executive Officer of Kodak, and John McMullen, Chief Financial Officer of Kodak. Jeff will provide some opening remarks and his perspectives on the business and quarter. Then John will take you through our second quarter results before we open it up for questions. I will now turn this over to Kodak CEO, Jeff Clarke.

此外，剛剛發布的新聞稿和提供的演示文稿包含某些被視為非 GAAP 措施的措施。與最直接可比的 GAAP 措施的對賬已在我們的投資者中心 investor.Kodak.com 的發布和介紹中提供。柯達首席執行官 Jeff Clarke 和首席財務官 John McMullen 將出席今天的電話會議。 Jeff 將提供一些開場白以及他對業務和季度的看法。然後，在我們開始提問之前，約翰將帶您了解我們的第二季度業績。我現在將把這個交給柯達首席執行官傑夫克拉克。

Thank you, David. Welcome everyone, and thanks for joining the investor call for Kodak's second quarter. I'd like to begin by introducing you to our new Chief Financial Officer, John McMullen. John is an accomplished financial executive, and brings to Kodak strategic expertise and deep knowledge in technology and commercial imaging and printing. I will discuss and provide an update to you on four primary areas in which Kodak is focusing to manage our business and achieve our plans we discussed in our last earnings call in May. First, growth of our strategic technology businesses. Second, manage the expected decline and optimize cash flow in the mature businesses. Third, reduce costs and streamline processes to improve operating leverage and efficiency. Fourth, I will discuss the keys to achieving our plan for the year.

謝謝你，大衛。歡迎大家，並感謝您加入柯達第二季度的投資者電話會議。首先，我想向您介紹我們的新任首席財務官 John McMullen。 John 是一位頗有成就的財務主管，為柯達帶來了戰略專長以及在技術和商業成像與印刷方面的深厚知識。我將討論並向您介紹柯達專注於管理我們的業務和實現我們在 5 月份的上一次財報電話會議上討論的計劃的四個主要領域。首先，我們戰略技術業務的增長。第二，管理預期下降並優化成熟業務的現金流。第三，降低成本並簡化流程以提高運營槓桿和效率。第四，我將討論實現我們今年計劃的關鍵。

Area number one is growth. For the full year we expect growth in our strategic technology businesses to essentially offset the declines in our mature businesses. The second half of this year is an important crossover point for the Company. While we were flat in our strategic technology businesses in the second quarter in revenue, we expect double-digit percentage year-over-year revenue growth for the second half of 2014 from our strategic technology businesses. As a result, a return to single digit percentage year-over-year revenue growth for the Company in total in the second half of 2014. In other words, for the first time in a long time, for the second half of 2014 Kodak expects to grow as a Company.

第一個領域是增長。對於全年，我們預計戰略技術業務的增長將基本抵消成熟業務的下滑。今年下半年是公司重要的交叉點。雖然我們的戰略技術業務在第二季度的收入持平，但我們預計 2014 年下半年我們的戰略技術業務的收入將實現兩位數的同比增長。因此，2014 年下半年公司總收入同比增長將恢復個位數百分比。換言之，柯達預計 2014 年下半年將是很長一段時間以來的第一次成長為一家公司。

Looking at our performance in the second quarter, we achieved solid growth in several of the strategic technology businesses and also continue to experience substantial declines in the mature businesses. Let me take you through the highlights. In our PROSPER product line, we grew revenue for the quarter by 10% year on year, including annuity growth of 12%. Page volume has also increased dramatically as a result of increased installed base as well as improved customer volumes. In the quarter we launched the Kodak PROSPER 6000 presses. These solutions have been designed to extend the total number of pages a customer can print by expanding the range of commercial and publishing applications to newspapers, catalogs, and direct mail, and significantly improving production efficiency.

從我們第二季度的表現來看，我們在幾項戰略技術業務中實現了穩健增長，同時在成熟業務方面也繼續出現大幅下滑。讓我帶您了解亮點。在我們的 PROSPER 產品線中，我們本季度的收入同比增長 10%，其中年金增長 12%。由於安裝基礎的增加以及客戶數量的增加，頁面數量也急劇增加。在本季度，我們推出了柯達 PROSPER 6000 印刷機。這些解決方案旨在通過將商業和出版應用範圍擴展到報紙、目錄和直郵並顯著提高生產效率來擴展客戶可以打印的總頁數。

PROSPER 6000 presses printed speeds exceeding industry standards, up to 1,000 feet per minute on matted and uncoated papers, 2.5 times faster than the Kodak PROSPER 5000 XLI press. Kodak 6000 presses produce salable prints at a low cost per page, approaching $0.005 per A4 page in color consumable costs. PROSPER 6000 presses contain an enhanced drying capability which allows heavyweight glossy and silk stock to be printed on the PROSPER 6000C press at 650 feet per minute. In 2014 we expect to achieve year-end install base of Prosper presses of more than 40. Year to date, PROSPER page volume, both color and black-and-white, has increased 47% over prior year, and this bodes well for second half annuity revenue growth. We expect to increase by about one-third the number of PROSPER S series and printing systems in the field to more than 1,000.

PROSPER 6000 印刷機的印刷速度超過行業標準，在無光澤和無塗層紙張上的印刷速度高達每分鐘 1,000 英尺，比柯達 PROSPER 5000 XLI 印刷機快 2.5 倍。柯達 6000 印刷機以較低的每頁成本生產可銷售的印刷品，每張 A4 紙的彩色耗材成本接近 0.005 美元。 PROSPER 6000 印刷機具有增強的干燥能力，可以在 PROSPER 6000C 印刷機上以每分鐘 650 英尺的速度印刷重量級的光面和絲綢原料。 2014 年，我們預計 Prosper 印刷機的年終安裝基數將超過 40 台。年初至今，PROSPER 的彩色和黑白頁數比上一年增加了 47%，這預示著第二個半年金收入增長。我們預計在現場的 PROSPER S 系列和打印系統數量將增加約三分之一，達到 1,000 多個。

We deliver continued growth in our packaging business as well this quarter. As a reminder, for the full year we expect to achieve 25%-plus increase in the installed base of FLEXCEL systems for packaging customers to more than 400 units. For the quarter, unit placements of our FLEXCEL NX systems grew 67% and the annuities generated grew by 26% in volume for the quarter. In June we launched a new Kodak FLEXCEL NXY 5080 system and a new range of Kodak FLEXCEL NX placed to significantly improve our portfolio offering to the corrugated printing packaging sector. Developed in response to customer demand in the post-print and preprint configured markets, the solution drives significant print volume improvements while taking advantage of increased print stability and press-room efficiencies. The solution is based on continued innovation and investment in technology, such as Kodak's SQUAREspot imaging technology and Kodak's Digicap NX patterning. This is a large market for Kodak. Corrugated print is 38% of the market in revenue dollars, and the total FLEXCEL plate market is estimated at $700 million.

本季度我們的包裝業務也實現了持續增長。提醒一下，對於全年，我們預計用於包裝客戶的 FLEXCEL 系統安裝基數將增加 25% 以上，達到 400 多台。本季度，我們的 FLEXCEL NX 系統的單位安置增長了 67%，本季度產生的年金數量增長了 26%。 6 月，我們推出了新的柯達 FLEXCEL NXY 5080 系統和新的柯達 FLEXCEL NX 系列，以顯著改善我們為瓦楞紙印刷包裝行業提供的產品組合。該解決方案是為響應印後和預印配置市場的客戶需求而開發的，在利用提高的印刷穩定性和印刷車間效率的同時，顯著提高了印刷量。該解決方案基於對技術的持續創新和投資，例如柯達的 SQUAREspot 成像技術和柯達的 Digicap NX 圖案化技術。這對柯達來說是一個很大的市場。瓦楞紙印刷佔市場收入的 38%，FLEXCEL 印版市場總額估計為 7 億美元。

In our last call I discussed our expectation for SONORA growth. For the year we expect to quadruple both our SONORA volume and the number of customers. For the SONORA product in the quarter, plate volume was up approximately 4 times, in line with our full-year projections. As recently announced, we reached a new milestone in this area with our 1,000th customer adoption of SONORA Process Free Plates. We're making good progress in our program to increase SONORA plant capacity and bring manufacturing closer to the customer. Earlier today in Xiamen we inaugurated our first SONORA line in China. This will continue to support momentum we've seen this year for SONORA.

在上次通話中，我討論了我們對 SONORA 增長的預期。今年，我們預計我們的 SONORA 銷量和客戶數量將翻兩番。對於本季度的 SONORA 產品，印版量增長了約 4 倍，符合我們的全年預測。正如最近宣布的那樣，我們在這一領域達到了一個新的里程碑，第 1,000 位客戶採用了 SONORA 免加工印版。我們在提高 SONORA 工廠產能和拉近製造距離客戶的計劃方面取得了良好進展。今天早些時候在廈門，我們在中國開設了第一條 SONORA 生產線。這將繼續支持我們今年看到的 SONORA 的勢頭。

Also within our graphics business for the quarter we saw CTP unit growth of 6%. Last week we announced the installation of our 20,000th SQUAREspot thermal imaging head, the industry's gold standard in imaging technology. As the developers of thermal computer-to-plate technology, Kodak makes the only CTP system which utilize Kodak's SQUAREspot imaging technology, giving customers the competitive advantage needed to reach a higher level of stability, accuracy, and reliability within their operation. Revenue in our unified Workforce Solutions business, which includes our industry-leading PRINERGY workflow software, grew almost 10% year on year for the second quarter, consistent with our full-year expectations.

在本季度的圖形業務中，我們還看到 CTP 單位增長了 6%。上週，我們宣布安裝了第 20,000 個 SQUAREspot 熱成像頭，這是成像技術行業的黃金標準。作為熱敏計算機直接製版技術的開發商，柯達製造了唯一使用柯達 SQUAREspot 成像技術的 CTP 系統，為客戶提供了在其操作中達到更高水平的穩定性、準確性和可靠性所需的競爭優勢。我們的統一勞動力解決方案業務（包括我們行業領先的 PRINERGY 工作流程軟件）的收入在第二季度同比增長近 10%，與我們的全年預期一致。

The emerging technologies on which we're focusing are developing on an increasing scale. In parallel, our legacy products in this category are experiencing declines, primarily in digital printing, which represents a strong annuity contributor with a large installed base. Our legacy inkjet business,Versamark, uses older continuous inkjet technology, which was a precursor to the PROSPER stream technology, and continues to decline in line with the market and in line with our expectations. Our electro-photographic products, Nexpress and Digimaster, are competing in flat markets. Here we're seeing modest decline as older units retire from the base, which reduces our annuity revenue.

我們關注的新興技術正在以越來越大的規模發展。與此同時，我們在這一類別中的遺留產品正在經歷衰退，主要是數字印刷，這代表了擁有龐大安裝基礎的強大年金貢獻者。我們的傳統噴墨業務 Versamark 使用較舊的連續噴墨技術，這是 PROSPER 流技術的先驅，並且隨著市場和我們的預期而繼續下降。我們的電子照相產品 Nexpress 和 Digimaster 在平坦的市場上競爭。在這裡，隨著舊設備從基地退役，我們看到適度下降，這減少了我們的年金收入。

Another area of growth opportunity is our startup functional printing business. Within this business we're focused on developing two technologies with our partners, UniPixel and Kingsbury. I'd like to provide you with an update on both of these technologies, beginning with UniPixel. Over the last several months we've largely transitioned from lab scale to pilot and production processes. Our technical focus has been on finding robots to product and process configurations for each individual production step, in an understanding the interaction effects with upstream and downstream processes. We now have printing, plating, testing, and finishing processes running in Rochester and we're at the early stages of end-to-end integration with full production scale operations. Our earlier development activities on fundamental technical elements provide a solid base to address process issues which arise at production scale. For printing, catalytic ink formulation, and substrate details are now locked for initial production. Regarding yield, we're now focused on customer performance criteria including electrical continuity and optical performance. On a week-to-week basis we have been seeing improving yield performance on key criteria and are now working to establish regular repeatable performance to the full roll-to-roll process for all criteria.

另一個增長機會領域是我們的初創功能印刷業務。在這項業務中，我們專注於與我們的合作夥伴 UniPixel 和 Kingsbury 一起開發兩項技術。我想為您提供這兩種技術的更新，從 UniPixel 開始。在過去的幾個月裡，我們基本上已經從實驗室規模過渡到試驗和生產過程。我們的技術重點一直是為每個單獨的生產步驟尋找產品和流程配置的機器人，以了解與上游和下游流程的相互作用。我們現在在羅切斯特運行印刷、電鍍、測試和精加工流程，我們正處於端到端集成與全面生產規模運營的早期階段。我們早期在基本技術要素方面的開發活動為解決生產規模出現的工藝問題提供了堅實的基礎。對於印刷、催化油墨配方和基材細節，現在已鎖定初始生產。關於良率，我們現在專注於客戶性能標準，包括電氣連續性和光學性能。每週我們都看到關鍵標準的產量性能有所提高，現在正在努力為所有標準的完整捲對卷工藝建立定期可重複的性能。

Regarding Kingsbury, the Rochester Kingsbury factory is 90% complete and running production trials. Product performance continues to meet requirements and is now in final reliability testing with the customer as part of display integration process for a completed touch screen product. In summary, we are delayed in our implementation of the touch screen sensor solutions. However, we remain incredibly excited about the growth opportunity touch screen sensors and functional printing provide to Kodak. Overall, operational EBITDA for the Strategic Technology businesses improved by $21 million year over year. Excluding nonrecurring licensing revenue operational EBITDA improved by $12 million.

關於金斯伯里，羅切斯特金斯伯里工廠已完成 90% 並正在進行生產試驗。產品性能繼續滿足要求，目前正與客戶一起進行最終可靠性測試，作為完整觸摸屏產品顯示集成過程的一部分。總之，我們延遲了觸摸屏傳感器解決方案的實施。然而，我們仍然對觸摸屏傳感器和功能打印為柯達提供的增長機會感到非常興奮。總體而言，戰略技術業務的運營 EBITDA 同比增長 2100 萬美元。不計入非經常性許可收入，運營 EBITDA 增加了 1200 萬美元。

To enhance our focus on growth for identifying opportunities to establish new capabilities. Since the close of the quarter, as an example, we created a new group, Kodak Technology Solutions, to insure we're getting the maximum benefit from our world-class innovation. Kodak Technology Solutions will act as an accelerator to the inventive work coming out of Kodak Research Labs by developing the best route to market for our emerging technologies. Eric Mahe, who is experienced on sales strategies and execution, will lead this new group and build a network of technology and business partners to accelerate deployment of new solutions.

加強我們對增長的關注，以發現建立新能力的機會。例如，自本季度末以來，我們創建了一個新團隊 Kodak Technology Solutions，以確保我們從世界級創新中獲得最大收益。 Kodak Technology Solutions 將通過為我們的新興技術開發最佳的市場途徑，作為柯達研究實驗室的創新工作的加速器。在銷售戰略和執行方面經驗豐富的 Eric Mahe 將領導這個新團隊，並建立技術和業務合作夥伴網絡，以加速新解決方案的部署。

In regard to our mature businesses, which include Entertainment and Commercial Films as well as Consumer Inkjet, revenue decreased 33% year over year. Operational EBITDA for these businesses was $15 million for the quarter. Film currently accounts for about 6% of the Company's revenue. In the current year we have experienced declines beyond our expectations, which challenged profitability for this business. This accelerated decline required us to explore alternatives for this business. After extensive discussions with our customers of film, which include filmmakers and leading studios as well as industrial customers for printed circuit boards and aerial film, we've established support for the products going forward, and therefore we intend to continue production. We'll work with industry leaders to finalize agreements. This decision allows us to continue to absorb the fixed costs associated with our film manufacturing, and also provides an opportunity to continue production into the future in support of new products like functional printing. Our Consumer Inkjet business is declining as well, as the install business continues to contract, but at a slower rate than expected. Therefore, relative to the guidance we provided for the mature businesses, this profitable consumables business is offsetting the accelerated decline in the Film business.

關於我們成熟的業務，包括娛樂和商業電影以及消費噴墨，收入同比下降 33%。本季度這些業務的運營 EBITDA 為 1500 萬美元。電影目前約占公司收入的 6%。在今年，我們經歷了超出預期的下滑，這對這項業務的盈利能力構成了挑戰。這種加速下降要求我們為這項業務探索替代方案。在與我們的電影客戶（包括電影製作人和領先的工作室以及印刷電路板和航空電影的工業客戶）進行廣泛討論後，我們已經建立了對未來產品的支持，因此我們打算繼續生產。我們將與行業領導者合作以最終確定協議。這一決定使我們能夠繼續吸收與我們的薄膜製造相關的固定成本，並且還提供了一個機會，可以在未來繼續生產以支持功能印刷等新產品。我們的消費者噴墨業務也在下降，因為安裝業務繼續收縮，但速度低於預期。因此，相對於我們為成熟業務提供的指導，這一有利可圖的耗材業務正在抵消薄膜業務的加速下滑。

The third area of focus is to reduce costs and streamline processes. For the first half of 2014 we've reduced our operational SG&A by $20 million and expect about a $50 million reduction in operational SG&A for the full year. These reductions will come from many areas, and include headcount reductions, movement of certain functions to lower cost geographies, and a rigorous review and renegotiation of third-party expenditures as we continue to variablize our cost structure. Just last week we announced actions which will make the Company more competitive and in line with the market. Kodak is moving from the current pension plan formulas and 401K match for US employees to a revised benefit formula effective January 1, 2015. With this change our retirement benefit will be competitive with companies in our industry. As a result of this change, we expect a reduction in the Company's projected benefit obligation related to the US pension plan of approximately $55 million, and an annual expense reduction of $12 million. Kodak is implementing a vacation policy change which will reduce US vacation carryover from four to two weeks as well. We'll continue to evaluate our market competitiveness and compensation of benefits globally to insure we maintain the ability to attract and retain talent.

第三個重點領域是降低成本和簡化流程。 2014 年上半年，我們將運營 SG&A 減少了 2000 萬美元，預計全年運營 SG&A 將減少約 5000 萬美元。這些裁員將來自許多領域，包括裁員、將某些職能轉移到成本較低的地區，以及在我們繼續改變成本結構時對第三方支出進行嚴格審查和重新談判。就在上週，我們宣布了將使公司更具競爭力並與市場接軌的行動。柯達正在從當前的養老金計劃公式和美國員工的 401K 匹配轉變為修訂後的福利公式，該公式將於 2015 年 1 月 1 日生效。隨著這一變化，我們的退休福利將與我們行業的公司競爭。由於這一變化，我們預計公司與美國養老金計劃相關的預計福利義務將減少約 5500 萬美元，年度費用將減少 1200 萬美元。柯達正在實施休假政策變更，這也將把美國的休假結轉時間從 4 週減少到 2 週。我們將繼續在全球範圍內評估我們的市場競爭力和福利補償，以確保我們保持吸引和留住人才的能力。

We're also addressing the cost of our manufacturing footprint in graphics and satisfying the growing SONORA demand by implementing a regional manufacturing strategy. We're consolidating our plate manufacturing from five to four sites worldwide while increasing our capability to manufacture Process Free Plates globally. We formulated this plan to drive local sourcing while continuously improving manufacturing quality, production efficiencies, and customer service across our entire digital plate portfolio. As a result, we'll realize $4 million in operational savings in 2014. And upon completion in the third quarter of 2015 expect to deliver $20 million to $25 million in annual operational savings. Overall this will increase our plates factory productivity by 14%. The Company is also reviewing additional structure and better cost reductions and will continue to implement them.

我們還通過實施區域製造戰略來解決圖形製造足蹟的成本，並滿足不斷增長的 SONORA 需求。我們正在將我們在全球範圍內的五個印版製造基地整合到四個，同時提高我們在全球範圍內製造免加工印版的能力。我們制定此計劃是為了推動本地採購，同時不斷提高我們整個數字印版產品組合的製造質量、生產效率和客戶服務。因此，我們將在 2014 年實現 400 萬美元的運營節約。預計在 2015 年第三季度完成後，每年將實現 2000 萬至 2500 萬美元的運營節約。總體而言，這將使我們的印版廠生產率提高 14%。公司還在審查額外的結構和更好的成本削減措施，並將繼續實施這些措施。

The fourth and final area I'd like to discuss is the nonlinear profile of our plan, which I also addressed during the Q1 earnings conference call. For the full year 2014 we expect to deliver revenue between $2.1 billion and $2.3 billion in operational EBITDA of $145 million to $165 million, with growth in our strategic technology businesses effectively offsetting the decline in mature businesses in both revenue and operational EBITDA. At the full Company level the year-to-date operational EBITDA was $30 million. As we've discussed, this is clearly not a linear run rate to deliver $145 million to $165 million in operational EBITDA for the year.

我想討論的第四個也是最後一個領域是我們計劃的非線性概況，我在第一季度收益電話會議上也談到了這一點。對於 2014 年全年，我們預計運營 EBITDA 的收入將在 21 億美元至 23 億美元之間，為 1.45 億美元至 1.65 億美元，我們的戰略技術業務的增長有效地抵消了成熟業務在收入和運營 EBITDA 方面的下降。在整個公司層面，年初至今的運營 EBITDA 為 3000 萬美元。正如我們所討論的那樣，這顯然不是今年運營 EBITDA 1.45 億美元至 1.65 億美元的線性運行率。

Let me update additional detail in the second half skew in our plan. Our full year projection incorporates a significant portion of our operational EBITDA in the second half of the year. The skew in our plan results from four factors. First, as experienced in prior years, sales in both graphics and digital printing businesses are seasonally weighted to later quarters. Second, lumpy, nonrecurring items such as licensing and legal settlements. Third, increasing annuity revenue for our PROSPER and FLEXCEL pipelines driven by new equipment placements. Fourth, benefits from ongoing cost improvements which will accrue as we get efficiencies across administrative and manufacturing functions. I'll now turn the call over to John who will review the financial results of the quarter.

讓我在我們計劃的下半年更新更多細節。我們的全年預測包含了下半年運營 EBITDA 的很大一部分。我們計劃中的偏差是由四個因素造成的。首先，與往年一樣，圖形和數字印刷業務的銷售額季節性加權到後期季度。其次，是塊狀的、非經常性的項目，例如許可和法律和解。第三，在新設備安置的推動下，我們的 PROSPER 和 FLEXCEL 管道增加了年金收入。第四，隨著我們提高行政和製造職能的效率，持續的成本改善將帶來好處。我現在將電話轉給約翰，他將審查本季度的財務業績。

Thanks Jeff, and good afternoon. It's a pleasure to have joined Kodak. It's been seven weeks since I started, and I am very excited to be a part of the Company at this time. Kodak is an iconic Company and brand with a tremendous opportunity for profitable growth moving forward. Later in my remarks I will share some initial observations in more detail. Today the Company filed its Form 10-Q for the second quarter of 2014 with the SEC. I recommend that you read that filing in its entirety. I am pleased to share my thoughts and comments on quarter results reported in that document and in our earnings release.

謝謝杰夫，下午好。很高興加入柯達。我開始工作已經七週了，我很高興此時能成為公司的一員。柯達是一家標誌性的公司和品牌，擁有巨大的盈利增長機會。在稍後的發言中，我將更詳細地分享一些初步觀察結果。今天，公司向美國證券交易委員會提交了 2014 年第二季度的 10-Q 表。我建議您完整閱讀該文件。我很高興分享我對該文件和我們的收益發布中報告的季度業績的看法和評論。

First, I would like to review the improvement in our net loss for the quarter on a year-over-year basis. As we reported in our earnings release, the net loss for the quarter improved from a loss of $224 million in Q2 of 2013 to a loss of $62 million in Q2 of 2014. The improvement of $162 million is primarily due to a reduction in reorganization costs related to Chapter 11 in 2013 of $67 million, a reduction in interest expense of $31 million, and a reduction in the provision for income taxes of $43 million.

首先，我想回顧一下本季度淨虧損與去年同期相比的改善情況。正如我們在收益發布中所報告的那樣，本季度的淨虧損從 2013 年第二季度的 2.24 億美元虧損減少到 2014 年第二季度的 6200 萬美元虧損。1.62 億美元的減少主要是由於重組成本的減少與 2013 年第 11 章相關的 6700 萬美元，利息支出減少 3100 萬美元，所得稅撥備減少 4300 萬美元。

Looking at Slide 10, on a year-to-date basis we are comparing the first half of 2014 to the first half of 2013 on an apples-to-apples basis. The information is taken directly from the Company's Consolidated Statement of Operations in the 10-Q and adjusts for large items in 2013 that provide an uneven comparison to 2014. As shown, the net loss for the first half of 2014 was $98 million compared to net income in the first half of 2013 of $59 million. However, 2013 included other operating income of $495 million, primarily from last year's gain of $535 million from the sale of the digital imaging patent portfolio. Our reorganization costs in last year were $192 million compared to $10 million in this year. And finally last year we had a loss on early retirement of debt in the amount of $6 million. Taking all this into consideration shows the comparable improvement of $150 million year over year.

查看幻燈片 10，從年初至今，我們將 2014 年上半年與 2013 年上半年進行橫向比較。該信息直接取自公司 10-Q 的綜合運營報表，並針對 2013 年的大項目進行了調整，與 2014 年相比存在不平衡。如圖所示，2014 年上半年的淨虧損為 9800 萬美元，而淨虧損為2013 年上半年的收入為 5900 萬美元。然而，2013 年包括 4.95 億美元的其他營業收入，主要來自去年出售數字成像專利組合的 5.35 億美元收益。我們去年的重組成本為 1.92 億美元，而今年為 1000 萬美元。最後，去年我們因提前償還債務而蒙受了 600 萬美元的損失。考慮到所有這些因素，可以看出同比增加了 1.5 億美元。

On Slide 11 continuing with our results for the quarter, consolidated Company revenue of $525 million declined 10% year over year. And gross profit decreased $31 million from $133 million in Q2 of 2013 to $102 million in Q2 of 2014. Year to date, consolidated revenue is down 14% year over year and gross profit decreased from $282 million in 2013 to $191 million in 2014. Revenue declines in our Entertainment and Commercial Films business, as well as our Consumer Inkjet business, are the primary drivers of these decreases and are collectively consistent with our expectations. Partially offsetting these declines for the quarter are improvements in operating costs versus the prior year. Q2 SG&A expenses decreased by $30 million year over year. On a year-to-date basis, SG&A expenses are down $61 million.

在幻燈片 11 上繼續我們本季度的業績，公司合併收入為 5.25 億美元，同比下降 10%。毛利潤從 2013 年第二季度的 1.33 億美元減少 3100 萬美元至 2014 年第二季度的 1.02 億美元。年初至今，綜合收入同比下降 14%，毛利潤從 2013 年的 2.82 億美元減少至 2014 年的 1.91 億美元。收入我們的娛樂和商業電影業務以及我們的消費者噴墨業務的下降是這些下降的主要驅動因素，並且總體上與我們的預期一致。與上一年相比，運營成本的改善部分抵消了本季度的這些下降。第二季度 SG&A 費用同比減少 3000 萬美元。從年初至今，SG&A 費用減少了 6100 萬美元。

In terms of a percentage of revenue, Q2 SG&A declined from 20% of revenue in 2013 to 16% of revenue in the current quarter, and down from 18% of revenue on a sequential basis versus Q1. We plan for further percentage declines as revenue grows in succeeding quarters. These reductions are resulting from a number of options including headcount reductions, the elimination of overhead costs with the completion of our document imaging and personalized imaging sale through the Kodak pension plan in the UK, decreases in pension expense, facilities consolidations and re-negotiations of vendor contracts during the Chapter 11 process.

就佔收入的百分比而言，第二季度 SG&A 從 2013 年佔收入的 20% 下降到本季度佔收入的 16%，與第一季度相比環比佔收入的 18% 有所下降。隨著隨後幾個季度收入的增長，我們計劃進一步降低百分比。這些減少是由於多種選擇造成的，包括裁員、通過英國柯達養老金計劃完成我們的文檔成像和個性化成像銷售而消除間接費用、養老金支出減少、設施整合和重新談判第 11 章流程中的供應商合同。

Overall the Company's operational EBITDA was basically flat at $24 million in Q2 2014 versus $25 million in Q2 2013. On a year-to-date basis operational EBITDA is down from $74 million in 2013 to $30 million in 2014. The year-to-date decline is driven by the reduction in our Film and Consumer Inkjet businesses as Jeff indicated earlier. As Jeff also noted, we are seeing growth in our Strategic Technology businesses partially offsetting these declines.

總體而言，公司 2014 年第二季度的運營 EBITDA 基本持平，為 2400 萬美元，而 2013 年第二季度為 2500 萬美元。年初至今，運營 EBITDA 從 2013 年的 7400 萬美元降至 2014 年的 3000 萬美元。年初至今正如 Jeff 之前指出的那樣，下降的原因是我們的膠片和消費噴墨業務的減少。正如 Jeff 還指出的那樣，我們看到戰略技術業務的增長部分抵消了這些下滑。

Turning to the year-over-year results in our operating segments. Our Graphics, Entertainment and Commercial Film segment, or GECF, revenue declined by $14 million, or 4%, for the quarter resulting from volume declines in Entertainment and Commercial Films as the motion picture industry continues its transition from traditional film to digital distribution, and pricing and mix impacts within Graphics. GECF gross profit decreased $11 million year over year from 16% of revenue in Q2 of 2013 to 14% of revenue in Q2 2014. The declines in gross profit were primarily due to the impact of depreciation, amortization, and other expenses resulting from the application of fresh start accounting, as well as the result of revenue reductions described and unfavorable manufacturing costs within Entertainment and Commercial Films. Partially offsetting this decline was a 3 percentage point improvement to margins within Graphics due to lower material costs and productivity improvements. SG&A expense for GECF improved on a year-over-year basis by $10 million, leading to an overall year-over-year decline in segment earnings for GECF of $2 million and a year-over-year improvement in operational EBITDA of $12 million.

轉向我們運營部門的同比結果。我們的圖形、娛樂和商業電影部門 (GECF) 本季度收入下降 1400 萬美元，即 4%，這是由於電影行業繼續從傳統電影向數字發行過渡，娛樂和商業電影的銷量下降，以及圖形中的定價和組合影響。 GECF 毛利潤同比下降 1100 萬美元，從 2013 年第二季度佔收入的 16% 下降到 2014 年第二季度佔收入的 14%。毛利潤下降主要是由於折舊、攤銷和應用程序產生的其他費用的影響重新開始會計，以及娛樂和商業電影中描述的收入減少和不利的製造成本的結果。由於材料成本降低和生產率提高，圖形業務的利潤率提高了 3 個百分點，部分抵消了這一下降。 GECF 的 SG&A 費用同比增加 1000 萬美元，導致 GECF 的分部收益總體同比下降 200 萬美元，運營 EBITDA 同比增加 1200 萬美元。

Let's move on to our Digital Printing and Enterprise segment, or DP&E. DP&E revenue in the second quarter decreased $30 million year over year, or 15%, with roughly two-thirds of this decline attributable to Consumer Inkjet sales with the remainder in overall digital printing revenues and a small decline in Enterprise Services. Our packing and PROSPER businesses, which include equipment and annuities, partially offset these decreases as we continue to grow these important strategic businesses. Gross profit for DP&E in the second quarter decreased by $19 million year over year from 29% of revenue in Q2 of 2013 to 23% of revenue in Q2 of 2014, primarily due to the decline and resulting mix impact from our Consumer Inkjet business, as well as the depreciation and amortization impacts from the application of fresh start accounting, similar to those described for our GECF segment. R&D expense also increased by $4 million year over year for DP&E due to fresh start depreciation, and an increase in expense as new products like functional printing near commercialization. The DP&E segment loss for the quarter increased by $16 million year over year, and operational EBITDA decreased by $13 million due to the reasons described.

讓我們繼續我們的數字印刷和企業部門，或 DP&E。第二季度 DP&E 收入同比下降 3000 萬美元，即 15%，其中大約三分之二的下降歸因於消費者噴墨銷售，其餘部分歸因於整體數字印刷收入和企業服務的小幅下降。隨著我們繼續發展這些重要的戰略業務，我們的包裝和 PROSPER 業務（包括設備和年金）部分抵消了這些下降。 DP&E 第二季度的毛利潤同比下降 1900 萬美元，從 2013 年第二季度佔收入的 29% 下降到 2014 年第二季度佔收入的 23%，這主要是由於消費噴墨業務的下降和由此產生的混合影響，以及應用新開始會計的折舊和攤銷影響，類似於我們的 GECF 部分所描述的影響。 DP&E 的研發費用也同比增加 400 萬美元，原因是新開始的折舊，以及隨著功能印刷等新產品接近商業化而增加的費用。由於上述原因，本季度 DP&E 部門虧損同比增加 1600 萬美元，運營 EBITDA 減少 1300 萬美元。

Based on the results we achieved in Q1 and Q2, second-half revenue expectations, licensing and nonrecurring items, as well as the ongoing impact of cost structure improvements, we expect that our 2014 revenue will fall within the range of $2.1 billion and $2.3 billion, and our operational EBITDA will fall within the range of $145 million to $165 million. These are the same ranges discussed on our last call. Recently announced changes regarding the US pension plan will likely result in a re-measurement process between now and the end of the year which will impact our GAAP financial statements. All other assumptions around the range of GAAP earnings from continuing operations at this time are effectively unchanged.

根據我們在第一季度和第二季度取得的成果、下半年的收入預期、許可和非經常性項目，以及成本結構改善的持續影響，我們預計我們 2014 年的收入將在 21 億美元和 23 億美元之間，我們的運營 EBITDA 將在 1.45 億美元至 1.65 億美元之間。這些與我們上次電話會議討論的範圍相同。最近宣布的有關美國養老金計劃的變化可能會導致從現在到年底的重新衡量過程，這將影響我們的 GAAP 財務報表。目前，關於來自持續經營業務的 GAAP 收益範圍的所有其他假設實際上沒有變化。

Focusing on our current cash flow and balance sheet, we are pleased with the progress we are making and the continued strength of our balance sheet. As of June 30, 2014 we reported cash of $768 million. The current cash balance is a reduction of $76 million compared to December 31, 2013. Through the first six months of the year the Company has used cash primarily for working capital, restructuring, interest expense payments, capital expenditures, and miscellaneous and smaller liability payments. Use of cash for inventory increases throughout the first half of the year is $58 million and includes approximately $20 million of aluminum purchases based on favorable pricing and our expectations around consumption during the second half. Ending cash for Q2 is within our expectations for the quarter, and we expect to generate positive cash from operating activities during the remainder of the year.

關注我們目前的現金流和資產負債表，我們對我們正在取得的進展和資產負債表的持續實力感到滿意。截至 2014 年 6 月 30 日，我們報告的現金為 7.68 億美元。與 2013 年 12 月 31 日相比，目前的現金餘額減少了 7600 萬美元。今年前六個月，公司主要將現金用於營運資金、重組、利息支出支付、資本支出以及雜項和較小的負債支付.整個上半年用於庫存增加的現金為 5800 萬美元，其中包括基於優惠定價和我們對下半年消費的預期而購買的約 2000 萬美元的鋁。第二季度的期末現金符合我們對該季度的預期，我們預計今年剩餘時間的經營活動將產生正現金。

As I mentioned at the beginning of my remarks, I would like to share my initial observations on Kodak with you based on my first seven weeks with the Company. First and foremost, I'm excited to be a part of the Company's next chapter. Kodak has been and remains an incredibly strong technology leader, and like Jeff I am very excited about the potential of our strategic offerings moving forward, and the opportunity for profitable growth. I'm also very impressed by the employees and leadership team at Kodak. And as a finance executive, I'm very pleased with the post-emergence financial strength of the Company. I will now turn this back to Jeff for closing comments.

正如我在發言開頭提到的，我想與您分享我在公司工作的前七週對柯達的初步觀察。首先，我很高興能成為公司下一章的一員。柯達一直是並且仍然是一個非常強大的技術領導者，和傑夫一樣，我對我們戰略產品向前發展的潛力以及盈利增長的機會感到非常興奮。柯達的員工和領導團隊也給我留下了深刻的印象。作為一名財務主管，我對公司復甦後的財務實力感到非常滿意。我現在將把它轉回 Jeff 以徵求結束意見。

Thank you, John. Great to have you on board. I'm very excited about the Strategic Technology businesses. They're the growth opportunities for Kodak. In addition to these businesses, we're taking actions to accelerate the improvement in profitability by reducing costs and making our operations more efficient. We're also developing new capabilities in areas that will lead to new growth opportunities, like Kodak Technology Solutions. We will make significant investments in our Strategic Technology businesses, including approximately $100 million of research and development, as well as $40 million in capital expenditures. This will be focused primarily on the next generation of our PROSPER press and rating system improvements, OEM partnerships in digital printing and functional printing, packaging product enhancements include smart packaging solutions, and continuing developments in capacity in our Process Free Plates and workflow software.

謝謝你，約翰。很高興你加入。我對戰略技術業務感到非常興奮。它們是柯達的增長機會。除了這些業務之外，我們還在採取行動，通過降低成本和提高運營效率來加快盈利能力的提高。我們還在可帶來新增長機會的領域開發新功能，例如柯達技術解決方案。我們將對我們的戰略技術業務進行重大投資，包括大約 1 億美元的研發，以及 4000 萬美元的資本支出。這將主要集中在我們的下一代 PROSPER 印刷機和評級系統改進、數字印刷和功能性印刷方面的 OEM 合作夥伴關係、包裝產品改進（包括智能包裝解決方案）以及我們免沖洗印版和工作流程軟件能力的持續發展。

For the full year we expect growth in our Strategic Technology businesses to essentially offset the declines in our mature businesses. The second half of this year is an important crossover point for the Company. We expect double-digit percentage year-over-year growth, revenue growth in our Strategic Technology business for the second half of 2014, and as a result a return to single-digit percentage year-over-year revenue growth for the Company in total for the second half of 2014. We'd now be very happy to take your questions. Dave?

對於全年，我們預計戰略技術業務的增長將基本抵消成熟業務的下滑。今年下半年是公司重要的交叉點。我們預計 2014 年下半年我們的戰略技術業務收入將實現兩位數百分比的同比增長，因此公司總收入將恢復個位數百分比的同比增長2014 年下半年。我們現在非常樂意回答您的問題。戴夫？

Thanks, Jeff. Stephanie, we are now ready to open the Q&A session. Please remind callers of the instructions for asking questions.

謝謝，傑夫。斯蒂芬妮，我們現在準備開始問答環節。請提醒來電者提問的說明。

Sure.

當然。

(Operator Instructions)

（操作員說明）

Our first question comes from Shannon Cross of Cross Research. Your line is open.

我們的第一個問題來自 Cross Research 的 Shannon Cross。你的線路是開放的。

Hi, thank you. This is actually Bill Grinstead in for Shannon Cross. Thanks for taking my questions. First question around your agreement that you signed with the Hollywood filmmakers, can you talk a little bit about the certainty that that may provide you as far as stepping down expenses or planning going forward?

嗨，謝謝你。這實際上是 Bill Grinstead 代替 Shannon Cross。感謝您回答我的問題。關於您與好萊塢電影製作人簽署的協議的第一個問題，您能否談談這可能為您提供的確定性，以減少開支或規劃未來？

Yes, of course. So we're still in negotiations, but the initial discussions gave us confidence that we had a broad coalition of all of the major studios and all of the independent studios that we reached out to, as well as a broad deep list of filmmakers who care deeply about film. It's great to have customers who care a lot about the product you make, and that's what we have. So when we looked at the overall economics of our business, we went and checked with the non-entertainment film business as well, our large business in making film for printed circuits boards, and also the business that we make with our former partner -- with our partner and former part of our company Kodak Alaris.

是的當然。所以我們仍在談判中，但最初的討論給了我們信心，我們有一個廣泛的聯盟，包括所有我們接觸過的主要製片廠和所有獨立製片廠，以及廣泛的電影製作人名單，他們關心對電影有深刻的了解。擁有非常關心您生產的產品的客戶真是太好了，這就是我們所擁有的。因此，當我們審視我們業務的整體經濟狀況時，我們還檢查了非娛樂電影業務、我們為印刷電路板製作薄膜的大型業務，以及我們與前合作夥伴開展的業務——與我們的合作夥伴和我們公司 Kodak Alaris 的前一部分。

We found that it made sense to continue to manufacture based on these projections, and we expect and intend to keep the factory open for the foreseeable future. We have a lot of fixed costs in this business. The film factory was designed for much larger volumes, and strategically it's important that we are able to manufacture films for our functional printing business going forward. So it's a nice way of solidifying the demand, the support for our product, bridging a period where our volumes are going to be relatively low until we go into the growth we expect in the functional printing of touch screen sensors.

我們發現根據這些預測繼續生產是有意義的，我們期望並打算在可預見的未來保持工廠開放。我們在這項業務中有很多固定成本。薄膜工廠是為更大的產量而設計的，從戰略上講，重要的是我們能夠為未來的功能性印刷業務製造薄膜。因此，這是鞏固需求、支持我們產品的好方法，彌合了我們的銷量相對較低的時期，直到我們進入觸摸屏傳感器功能印刷的預期增長期。

Okay. And then kind of broader, switching more to headcount. When you think more about kind of your declining businesses and the general step-down in expenses that you expect to roll through there, how do you view your expense structure? Do you see any incremental pockets of expense you could pull out outside of kind of the declining businesses? What are your overall thoughts?

好的。然後更廣泛，更多地轉向員工人數。當你更多地考慮你衰退的業務類型以及你希望在那裡滾動的費用普遍下降時，你如何看待你的費用結構？您是否看到任何可以從衰退業務中抽出的增量費用？你的總體想法是什麼？

Okay. So I think there are many different ways that the Company is going to try and become more productive. The Company is much smaller than it was a few years ago, and as such we will continually to work around different areas to improve our productivity as a Company. We also are going through a very substantial shift in the products that we build and bring to the marketplace. So to give you an example, the Film business we just discussed is really down to about 300 employees, between 300 and 400 employees. So there's not a lot of reduction left there. These are talented employees and our team to create and innovate in the Film area, and will be the basis for not only continuing the existing business but the investments going forward for films, for functional printing. In the Consumer Inkjet business, our other mature business, that's a very small sales team working with distributors. And so that is also a relatively small team. And so the mature businesses, I don't see a significant amount of further reduction.

好的。因此，我認為公司將嘗試多種不同的方式來提高生產力。公司比幾年前小得多，因此我們將繼續圍繞不同領域開展工作，以提高公司的生產力。我們還正在經歷我們構建並推向市場的產品的重大轉變。所以舉個例子，我們剛才討論的電影業務實際上只有大約 300 名員工，在 300 到 400 名員工之間。所以那裡沒有太多減少。這些才華橫溢的員工和我們的團隊在電影領域創造和創新，不僅將成為繼續現有業務的基礎，還將成為未來電影和功能性印刷投資的基礎。在我們另一個成熟的消費噴墨業務中，這是一個與分銷商合作的非常小的銷售團隊。所以這也是一個相對較小的團隊。所以成熟的企業，我看不到進一步減少的數量。

We do have still a lot of vertical integration in the Company that supported a series of more complex products in the past, and there some opportunities there. But overall we are looking to grow quite significantly. So from a headcount perspective, while we will always look to be more efficient, we're also looking to hire talent in the software area for our workflow software business, and in the areas of around our inkjet business, which is growing quite well, as well as our functional printing businesses and packaging businesses. So you heard the overall cost implications. We expected, what, $50 million down, primarily driven by headcount on a year-over-year basis. After that, the cost structure will be generally about in the right place.

我們公司確實還有很多垂直整合，過去支持一系列更複雜的產品，那裡有一些機會。但總體而言，我們希望實現顯著增長。因此，從員工人數的角度來看，雖然我們總是希望提高效率，但我們也在為我們的工作流軟件業務以及我們的噴墨業務周圍的領域招聘人才，這些業務增長得很好，以及我們的功能性印刷業務和包裝業務。所以你聽到了總體成本影響。我們預計，減少 5000 萬美元，主要是受同比員工人數的推動。之後，成本結構通常會在正確的位置。

Okay. All right, thank you.

好的。好吧。謝謝。

Thank you. Our next question comes from Trent Porter of Guggenheim Partners. Your line is open.

謝謝。我們的下一個問題來自 Guggenheim Partners 的 Trent Porter。你的線路是開放的。

Hi, guys. Just a quick one. You said that you are currently behind your expectations in the functional printing business, and yet you're able to reiterate your guidance range. And I think you provided an answer embedded in some of your comments earlier, but I was hoping you could summarize how you're able to do that, what improved elsewhere? Is it the agreement with the studios, or are there other things contributing?

嗨，大家好。只是一個快速的。你說你目前在功能印刷業務方面落後於你的預期，但你能夠重申你的指導範圍。我認為您在之前的一些評論中提供了一個答案，但我希望您能總結一下您是如何做到這一點的，其他地方有什麼改進？是與工作室的協議，還是有其他因素在起作用？

Yes. So lots of puts and takes in our reiteration of the guidance, and I think we go through some of that. We're doing -- while we are behind in Film, we're ahead of our expectations in Consumer Inkjet, and those overall balance out in the mature areas. And in the Strategic sector, we expect to provide this roughly $100 million year over year. So while there -- some businesses are a little bit behind there and some businesses are a little bit ahead, overall we're on track on the strategic businesses where we want to be. So within the mature business, I think the main story is that while we're behind on the Film, we're making that up with Consumer Inkjet. On the functional printing miss, we're doing better in packaging and we're doing better in some of the brand licensing and intellectual property area.

是的。在我們重申指南時，有很多投入和投入，我認為我們經歷了其中的一些。我們正在做——雖然我們在電影方面落後，但我們在消費噴墨方面領先於我們的預期，而且這些在成熟領域的總體平衡。在戰略部門，我們預計每年提供大約 1 億美元。因此，雖然在那裡——有些企業有點落後，有些企業有點領先，但總體而言，我們正在朝著我們想要成為的戰略業務走上正軌。因此，在成熟的業務中，我認為主要的故事是，雖然我們在電影方面落後，但我們正在用消費者噴墨來彌補。在功能印刷方面，我們在包裝方面做得更好，在一些品牌許可和知識產權領域也做得更好。

Okay. And then on intellectual property, I think you described something, I think back of-the-envelope I came up with $14 million of what you described as nonrecurring IP. But should we think about this as a headwind, or do you have sort of an outlook or expectation for continued IP settlements and licensing going forward that would make it less of a headwind and more of sort of an ongoing kind of thing?

好的。然後關於知識產權，我想你描述了一些東西，我回想起來我想出了 1400 萬美元的你所描述的非經常性知識產權。但是我們是否應該將其視為逆風，或者您是否對未來繼續進行知識產權和解和許可有某種展望或期望，這將減少逆風，而更多地成為一種持續的事情？

Well, first of all, everything in this area around brand licensing in which the property is a tailwind.

好吧，首先，這個領域的一切都圍繞著品牌許可，而物業是順風車。

Okay, yes.

好的，是的。

It's all good news. The question is, I described this as being a bit lumpy because some quarters you get, like if you look at last year as an example, 2013. You had some quarters where you had some modest numbers and then you had a couple ones of larger amounts. And that's the nature of intellectual property and licensing business. There is a treasure trove of 7,000 some-odd patents that this Company has. There is great intellectual property in this Company, and while a lot, particularly the digital imaging portfolio which was sold during the bankruptcy, is behind us as an opportunity, there's still a significant number of additional intellectual property and brand licensing opportunities. The Kodak brand is very strong, and we today in the brand licensing are in the tens of millions of dollars of profit. I believe that to be quite significant growth going forward, as well as having these lumpy more intellectual property licensing opportunities.

這都是好消息。問題是，我將其描述為有點起伏不定，因為你得到了一些季度，比如如果你以去年為例，2013 年。你有一些季度，你有一些適度的數字，然後你有幾個更大的金額。這就是知識產權和許可業務的本質。本公司擁有7000多項專利寶庫。這家公司有很多知識產權，雖然很多，特別是在破產期間出售的數字成像產品組合，作為一個機會已經落後於我們，但仍然有大量額外的知識產權和品牌許可機會。柯達品牌非常強大，我們今天在品牌授權方面的利潤都在幾千萬美元。我相信未來會有相當顯著的增長，以及擁有這些塊狀的更多知識產權許可機會。

Okay. That's good news. So rather than thinking of this as $14 million that's not going to happen again in 2015, it sounds like there's more opportunity going forward, and that the licensing component could increase. Am I characterizing that right?

好的。那是好消息。因此與其將其視為 2015 年不會再次發生的 1400 萬美元，不如說未來會有更多機會，而且許可部分可能會增加。我描述的對嗎？

Yes. I think, again let me be real clear. The brand licensing and intellectual property business is not a business that gets depleted over time. That's a business that is a growing business, an opportunity for future licensing, future intellectual property, joint ventures and/or sales and/or annuity licenses. So there's a rich treasure trove and a great brand that has yet to be fully monetized. We see for the next several years being able to take steps to monetize both of those -- both the licensing, joint ventures around our technologies, new technologies that are being invented in our labs that we can later license and/or work into joint ventures or bring to market ourselves. So I think the way to look at this is, this is a great business within our strategic businesses. However, when you're trying to -- if you're trying to model kind of standard straight line linear year-over-year growth, you're not going to find that in this particular business.

是的。我想，再次讓我說清楚。品牌許可和知識產權業務不會隨著時間的推移而枯竭。這是一項不斷發展的業務，是未來許可、未來知識產權、合資企業和/或銷售和/或年金許可的機會。因此，有一個豐富的寶庫和一個尚未完全貨幣化的偉大品牌。我們看到在接下來的幾年裡能夠採取措施將這兩者貨幣化——包括許可、圍繞我們技術的合資企業、我們實驗室正在發明的新技術，我們以後可以許可和/或進入合資企業或自己推向市場。所以我認為看待這個問題的方式是，這是我們戰略業務中的一項偉大業務。然而，當你試圖 - 如果你試圖模擬一種標準的直線線性同比增長，你不會在這個特定的業務中找到它。

Okay. That makes sense. And then finally, you touched on this but I was wondering if you could make any -- if there was anything else you could say about any progress you've made in terms of the pipeline of other potential OEM partners beyond Bobst and Timson? And also when we might expect to see monetization of the Bobst agreement? And then finally, potential other partners in functional printing? And then I'm done.

好的。這就說得通了。最後，你談到了這一點，但我想知道你是否可以做出任何 - 如果你還有什麼可以說的關於你在 Bobst 和 Timson 之外的其他潛在 OEM 合作夥伴的管道方面取得的任何進展？還有什麼時候我們可能會看到 Bobst 協議的貨幣化？最後，功能印刷領域的其他潛在合作夥伴？然後我就完成了。

All right. Great -- all very, very good questions. So -- and ones we're all quite excited about. First of all, the OEM relationships that we have today around -- let's go through the different pieces. So in the digital printing area where Bobst in packaging is our most significant currently announced partnership, we're very excited about that. We have a pipeline of systems that are being built. We have customers. Bobst and Kodak have customers in place and a strong pipeline. The monetization of that will occur beginning this year.

好的。太好了——都是非常非常好的問題。所以 - 我們都非常興奮。首先，我們今天擁有的 OEM 關係——讓我們來看看不同的部分。因此，在數字印刷領域，Bobst 包裝是我們目前宣布的最重要的合作夥伴關係，我們對此感到非常興奮。我們有一系列正在構建的系統。我們有客戶。博斯特和柯達擁有現有客戶和強大的渠道。該貨幣化將從今年開始發生。

Wow, okay.

哇，好吧。

,In term of Timson, which is a book press that we're working, that is also making reasonably good progress, and we expect monetization this year and next year and in future years. We are in discussions with other partners for our PROSPER technologies. I'm not going to announce them on this call, but when those things firm up into formal joint ventures and agreements, we will be pleased to announce them. But I am comfortable with the pipeline that we have going forward.

，就我們正在合作的一家圖書出版社 Timson 而言，它也取得了相當不錯的進展，我們預計今年和明年以及未來幾年會實現貨幣化。我們正在與其他合作夥伴討論我們的 PROSPER 技術。我不會在這次電話會議上宣布它們，但當這些事情確定為正式的合資企業和協議時，我們將很高興宣布它們。但我對我們前進的管道感到滿意。

In terms of functional printing opportunities beyond our very strong relationships with UniPixel and Kingsbury, we also see additional opportunities around the touch screen sensor with further partners, particularly on the silver halide solution area that today is where we partner with Kingsbury. And so both Kingsbury and Kodak are working together to try and expand the market for this product that is already, as I said, 90% production level today. And already in customer -- working with customers for final acceptance and test. So very excited about that.

除了我們與 UniPixel 和 Kingsbury 的牢固關係之外，就功能印刷機會而言，我們還看到了與更多合作夥伴圍繞觸摸屏傳感器的更多機會，特別是在我們今天與 Kingsbury 合作的滷化銀解決方案領域。因此，Kingsbury 和 Kodak 正在共同努力，努力擴大該產品的市場，正如我所說，如今該產品的生產水平已經達到 90%。並且已經在客戶中——與客戶合作進行最終驗收和測試。對此非常興奮。

And then just to add to this, I mentioned that we started a new group, Kodak Technology Solutions. And this is based on the very deep levels of technologies around secure packaging, around digital print, around micro fluids, and many other areas within our labs. And the strategy of this group is to monetize these faster than has been the historic track. Historically most of these products that went into a business unit and eventually became part of an overall revenue stream. Going forward that may be a primary way of going, but there will also be alternatives of joint ventures, sales of technology, licensing of technology coming out of the rich portfolio of both historic and forward opportunities we have from our research labs.

然後補充一點，我提到我們成立了一個新的小組，柯達技術解決方案。這是基於圍繞安全包裝、數字印刷、微流體以及我們實驗室內許多其他領域的非常深層次的技術。這個團隊的戰略是比以往更快地將這些貨幣化。從歷史上看，這些產品中的大多數進入業務部門並最終成為整體收入流的一部分。向前邁進可能是一種主要的前進方式，但也將有合資企業、技術銷售、技術許可的替代方案，這些選擇來自我們研究實驗室擁有的豐富的歷史和未來機遇組合。

Great, great. Thank you so much. I'm done. Thank you.

很棒很棒。太感謝了。我受夠了。謝謝。

Thank you, Trent.

謝謝你，特倫特。

Our next question comes from Jen Ganzi of Hillmark Capital. Your line is open.

我們的下一個問題來自 Hillmark Capital 的 Jen Ganzi。你的線路是開放的。

Thanks so much for taking the question. Just a couple. I was just wondering, and maybe this was in the Q. I haven't had a chance to review it fully yet, but can you give us your US cash number?

非常感謝您提出這個問題。只是一對。我只是想知道，也許這在問題中。我還沒有機會全面審查它，但你能告訴我們你的美國現金號碼嗎？

John?

約翰？

We have roughly in the US, I believe, at the end of the quarter $190 million.

我相信，在本季度末，我們在美國大約有 1.9 億美元。

Okay, great. That's helpful, thanks. And then you mentioned, and maybe you mentioned this earlier, I might have missed this, but you mentioned that your plates graphics business, like outside of the Films business, experienced growth for the first time in a while. Did you give us like the percentage rate for that growth?

好的，太好了。這很有幫助，謝謝。然後你提到，也許你早些時候提到過，我可能錯過了這一點，但你提到你的印版圖形業務，就像電影業務之外的業務一樣，在一段時間內首次出現增長。你給了我們這種增長的百分比嗎？

I'm sorry, you're breaking up, but let me try and answer what I think I heard, which is that we experienced -- that we mentioned that we experienced volume growth in our overall global plates business. And I think on our last call we mentioned that the month of April was the first month that we had achieved that in some period of time. And I will confirm that for this quarter we did end up achieving year-over-year growth, and that has continued in the current month, the first month of this quarter. So very pleased with the market share we're gaining and the volume growth in our digital plates business. This is driven by our SONORA Process Free Plates and the execution of both manufacturing and sales across the globe, and this business has been quite strong this year.

對不起，你要分手了，但讓我試著回答我所聽到的，那就是我們所經歷的——我們提到我們在全球整體板材業務中經歷了銷量增長。我認為在我們上次通話中我們提到 4 月份是我們在一段時間內實現這一目標的第一個月。我要確認的是，本季度我們確實實現了同比增長，並且在本季度的第一個月繼續保持這種增長。對我們獲得的市場份額和數字版業務的銷量增長感到非常高興。這是由我們的 SONORA Process Free Plates 以及全球製造和銷售執行所推動的，今年這項業務非常強勁。

Okay. So (technical difficulties) to give us a sort of number around the revenue growth there?

好的。那麼（技術困難）給我們一個圍繞收入增長的數字排序嗎？

Well, I mean, the revenue growth on process -- on overall plates?

好吧，我的意思是，過程中的收入增長——在整體板塊上？

Yes, just on plates overall.

是的，就整體而言。

The answer is that we have volume increases of single-digit levels and roughly flat revenue overall. Within that number is a rapid increase in the Process Free sector and a single-digit decline as we impinge on our own customer base with the other plates business. In doing so, while it's relatively flat on the top line it's, as John mentioned in his remarks around gross margin for the business, our gross margins are stronger than that. There's good growth in the gross margin coming from our plates business because of both manufacturing efficiencies, but also the premium that we're able to charge for Process Free Plate versus the traditional plate.

答案是我們有個位數水平的銷量增長和總體收入大致持平。在這個數字中，Process Free 部門快速增長，而隨著我們用其他印版業務衝擊我們自己的客戶群，則出現個位數下降。在這樣做的過程中，雖然它的收入相對持平，但正如約翰在他關於業務毛利率的評論中提到的那樣，我們的毛利率比這更高。我們的印版業務的毛利率有良好的增長，這既是因為製造效率，也是因為我們能夠對免加工印版收取的溢價與傳統印版相比。

Okay, great. So it sounds like at some point you've expressed the Process Free's growth sort of offsets the declines on through the older line plates. Is that the right way to think about it?

好的，太好了。所以聽起來在某些時候你已經表達了 Process Free 的增長有點抵消了舊線路板的下降。這是正確的思考方式嗎？

Yes. Over time, including now, we expect the growth in Process Free Plates to offset the decline of other plates and lead to modest growth in this mature business.

是的。隨著時間的推移，包括現在，我們預計免加工印版的增長將抵消其他印版的下滑，並導致這一成熟業務的適度增長。

Okay, that's helpful. Thanks so much. And I'm just curious in terms of looking at your sort of packaging versus PROSPER printing solutions, do you have any overlap in terms of your clients there where possibly guys that you can sell to both on the corrugated boxes side as well as if they do sort of (technical difficulties) packaging as well? (Technical difficulties)

好的，這很有幫助。非常感謝。我只是想看看你的包裝類型與 PROSPER 印刷解決方案，你的客戶有沒有重疊，你可以在瓦楞紙箱方面銷售給他們也做一些（技術困難）包裝嗎？ （技術難點）

Excellent question. There are many different ways to try and label a piece of corrugated. And the traditional way is a rubber FLEXCEL plate. And that market is one that we entered a few years ago and have done extraordinarily well in growing in that business, growing much faster than the overall market, and moving from 0% share up to high single digit share in that market. This past quarter, I think we mentioned that we had 66%-some-odd growth in the FLEXCEL plate setter and a strong 20%-ish percent growth in the plates themselves. So we're very pleased with the FLEXCEL solution.

很好的問題。有許多不同的方法可以嘗試給一塊瓦楞紙貼上標籤。而傳統的方式是橡膠 FLEXCEL 板。這個市場是我們幾年前進入的市場，並且在該業務的增長方面做得非常好，增長速度比整體市場快得多，並且從該市場的 0% 份額上升到高個位數份額。上個季度，我想我們提到我們在 FLEXCEL 製版機方面實現了 66% 的奇數增長，並且在印版本身方面實現了 20% 左右的強勁增長。所以我們對 FLEXCEL 解決方案非常滿意。

Obviously you can also print on corrugated with inkjet. To print successfully on corrugated with inkjet you need a very, very sophisticated head and that's what our PROSPER systems do. In the partnership with Bobst, clearly we'll have an impact on the FLEXCEL market because it will displace many FLEXCEL customer -- many FLEXCEL solutions around printing with a cheaper, more effective digital process around printing on corrugated. So we're very excited with that, but different packaging customers are going to choose different solutions. Some will choose inkjet solutions and some will choose FLEXCEL. We're very pleased to be in the forefront around technology in both sectors of this rapidly growing business. When you think of visual print, packaging is perhaps the most exciting market that we have right now.

顯然，您也可以使用噴墨技術在瓦楞紙上打印。要使用噴墨技術在瓦楞紙上成功打印，您需要一個非常非常精密的打印頭，而這正是我們的 PROSPER 系統所做的。在與 Bobst 的合作中，顯然我們將對 FLEXCEL 市場產生影響，因為它將取代許多 FLEXCEL 客戶——許多圍繞印刷的 FLEXCEL 解決方案採用更便宜、更有效的瓦楞紙印刷數字工藝。所以我們對此感到非常興奮，但不同的包裝客戶會選擇不同的解決方案。有些人會選擇噴墨解決方案，有些人會選擇 FLEXCEL。我們很高興能夠在這個快速發展的業務的兩個領域處於技術前沿。當您想到視覺印刷時，包裝可能是我們目前擁有的最令人興奮的市場。

Great. So it sounds like you guys kind of go out to different customers with sort of a proposal of using sort of a bunch -- a number of different products, whether it's PROSPER or FLEXCEL, and the customer gets to basically choose one or both of them, depending on sort of their individual needs. Is that the right way to think about it?

偉大的。所以聽起來你們有點像向不同的客戶提出使用一堆的建議 - 許多不同的產品，無論是 PROSPER 還是 FLEXCEL，客戶基本上可以選擇其中一個或兩個，取決於他們的個人需求。這是正確的思考方式嗎？

It is. I think for different applications you'll use either tool. Kodak is pleased to be able to provide customer choice around both technologies to the industry.

這是。我認為對於不同的應用程序，您將使用任一工具。柯達很高興能夠為業界提供圍繞這兩種技術的客戶選擇。

Great. That's all for me. Thanks so much.

偉大的。這就是我的全部。非常感謝。

Thank you.

謝謝。

Thank you. And our last question comes from Amer Tiwana of CRT Capital. Your line is open.

謝謝。我們的最後一個問題來自 CRT Capital 的 Amer Tiwana。你的線路是開放的。

Hi, guys. I was just looking through the press release, and wanted to see if you guys have any updates on the S systems? I think last time you gave some quantitative measures, and this time I haven't seen anything. So if you could just update us on that.

嗨，大家好。我只是在瀏覽新聞稿，想看看你們是否有關於 S 系統的任何更新？我想上次你給出了一些量化的措施，這次我什麼都沒看到。所以，如果你能告訴我們最新情況。

It's a question on the PROSPER heads, S series heads, what is the volumes on that?

問題是PROSPER heads，S系列的heads，那上面的volume是多少？

Yes.

是的。

So we -- first of all, the answer is we gave the overall equipment number of roughly 10% growth for PROSPER of equipment and 12% growth in the annuities. We had a very good first quarter, shipping over 60 heads. On a sequential basis we're down a bit this year, but we're on track for the numbers that we talked about. And overall, what we said is we want to get to 1,000 for the year.

所以我們 - 首先，答案是我們為設備的 PROSPER 和年金增長提供了大約 10% 的整體設備數量增長和 12% 的增長。我們第一季度表現非常好，出貨量超過 60 個。在連續的基礎上，我們今年有所下降，但我們正朝著我們談到的數字前進。總的來說，我們所說的是我們希望今年達到 1,000。

Okay. And then moving on to the seasonality in the business that you mentioned, I'm just wondering if you could help us out with respect to 3Q and 4Q as to how we should think about growth? Is it going to be linear, meaning 4Q better than 3Q, or if you would just help us out there.

好的。然後繼續您提到的業務的季節性，我只是想知道您是否可以幫助我們解決第三季度和第四季度的問題，我們應該如何考慮增長？它會是線性的嗎，意味著 4Q 比 3Q 好，或者你是否願意幫助我們。

Yes. So we're not going to give any guidance on that. The answer is, as you can tell if you back into right now, the -- if you back into what the revenue is for the first half versus the second half, you're going to see high single digit, mid to high single digit growth in overall Company revenue for the second half. To give you context, we're still checking the numbers because it's been a while, but we believe the last time that Kodak grew on a year-over-year basis in revenue was 1999. So we're very excited that second half of this year we'll have year-over-year growth in single -- low to mid single digit growth.

是的。所以我們不會就此提供任何指導。答案是，正如你現在可以看出的那樣，如果你回到上半年和下半年的收入是多少，你會看到高個位數，中到高個位數下半年公司整體收入增長。為了給你提供背景信息，我們仍在檢查這些數字，因為已經有一段時間了，但我們相信柯達上一次收入同比增長是在 1999 年。所以我們對下半年感到非常興奮今年我們將有一個同比增長——低到中個位數的增長。

In terms of how it comes in third and fourth quarter, we have a lot -- a lot of our growth is in complex sales, and these sales have long sales cycles. So we see a good pipeline, but I am not necessarily managing this Company on whether it hits in September or October. We want to get the business in as soon as we can to try and drive the annuity growth and the install base. But at this point getting back to growth is a great accomplishment for the Company. We're very pleased about that.

就第三和第四季度的情況而言，我們有很多 - 我們的很多增長都來自複雜的銷售，而這些銷售的銷售週期很長。所以我們看到了一個很好的管道，但我不一定要管理這家公司是在 9 月還是 10 月上市。我們希望盡快開展業務，以嘗試推動年金增長和安裝基礎。但在這一點上，恢復增長對公司來說是一項巨大的成就。我們對此感到非常高興。

Sure. And the last question I have is with respect to functional print. Just in terms of thinking about the revenues from the UniPixel and the Kingsbury relationship, I know you mentioned that the process is sort of delayed a little bit. Can we expect some revenues by the end of this year, or is it now a next year story?

當然。我的最後一個問題是關於功能性打印的。就 UniPixel 和金斯伯里關係的收入而言，我知道你提到過這個過程有點延遲。我們能否在今年年底前獲得一些收入，或者現在是明年的故事？

No. We do expect revenue this year around the functional printing level. And that revenue, we'll be very pleased with that. We actually had a modest amount of revenue in the second quarter, and -- but the revenue will be in the tens of millions for the year.

不。我們確實預計今年的收入會在功能印刷水平左右。而這筆收入，我們將對此感到非常滿意。實際上，我們第二季度的收入不多，而且——但全年的收入將達到數千萬美元。

Thank you very much.

非常感謝。

Okay. That's all the questions we have time for. I'd like to hand the call back over to Jeff.

好的。這就是我們有時間回答的所有問題。我想把電話轉回給傑夫。

Thank you very much, David. So again, I'm very pleased with the progress we're making in our strategic businesses. As I said when I joined the Company, we will make progress in this Company. It won't necessarily be a straight line, but I'm very pleased with the trajectory of some of our businesses and the decisions that we're able to make and the implementations that we're able to make around transforming some of our both mature businesses and getting some of the acceleration of growth in our strategic businesses. So appreciate your time today, and thank you very much for joining the call.

非常感謝你，大衛。因此，我再次對我們在戰略業務中取得的進展感到非常高興。正如我在加入公司時所說的那樣，我們將在這家公司取得進步。它不一定是一條直線，但我對我們一些業務的發展軌跡以及我們能夠做出的決定以及我們能夠圍繞轉變我們的某些業務而做出的實施感到非常滿意成熟的業務，並在我們的戰略業務中獲得一些加速增長。非常感謝您今天抽出時間，非常感謝您加入電話會議。

Ladies and gentlemen, thank you for participating in today's conference. This does conclude the program. You may all disconnect. Everyone have a great day.

女士們，先生們，感謝你們參加今天的會議。這確實結束了程序。你們都可以斷開連接。每個人都有美好的一天。