The bankrupt Eastman Kodak Company has one thing that may help the company survive; thin film expertise and the equipment to produce and handle it. Combine this with flexible film solar cell technology and the company may be able to survive, or spin off a subsidiary that can prosper. Here are some things to think about before we imagine Kodak raising a solar torch.
A few negatives about Kodak
The first big problem is obvious, Kodak is bankrupt. In 1995 Kodak had a market value of around $31 billion. Today that value is around $100 million. The company sought $950 million in financing to continue operation, but were only approved for $650 million by the bankruptcy judge. Kodak will continue to be strapped for cash.
In recent years a big part of Kodak’s cash flow has been through patent litigation, selling digital patents, brand or logo leasing rights, and divestiture of assets. These are not the actions of a dynamic and healthy company.
Kodak management has not demonstrated an ability to respond timely to changing technology. They’ve always been too little too late even though holding a winning hand at the beginning of the game. Kodak invented digital cameras but failed to capitalize on the technology.
A few negatives about solar technology
Solar technology is subsidized by the government. There is a good argument that the profit motive in any subsidized industry is the subsidy itself. It is only when subsidies are dropped that industry will succeed or fail on merits.
There is a glut of solar technology on the market today which leaves little incentive to produce for any reason other than to use the subsidy as profit. Once solar technology stands on merit the business model will change toward better quality, efficiency, utilization and management.
A few positives about solar technology
Solar energy is one answer to the energy problem for the next few hundred years or longer.
Solar technology is available today.
Solar energy is easy to use.
A few positives for Kodak
Eastman Kodak still has a core of scientists, engineers and technicians.
They have thin film expertise and equipment to produce thin film.
Kodak has entered into an agreement with Natcore Technologies to help produce flexible solar panels.
This is not much to hang our hats on. If flexible solar panels became a big part of Kodak I suspect we will see that division spun off as a separate business. Eastman Kodak appears destined to become a footnote in history. That’s the way I see the picture…