May 4, 2015
Eastman Kodak has been hoping to spin some of its assets and expertise into touchscreen technology and products. In 2013, Texas-based Unipixel, a touchscreen sensor film company, signed an agreement with Kodak to establish a plant in Eastman Business Park to manufacture UniPixel's InTouch technology.
The agreement has been full of snags and delays. When the deal was first announced the two companies expected to be manufacturing by the end of 2013--then it became the end of 2014--and then it became the end of 2015. However, last Monday, UniPixel announced that they would be cutting ties with Eastman Kodak and ending their agreement. Among the reasons for ending the agreement UniPixel disclosed that declining margins and the risks of splitting profits with another company outweighs the potential in moving forward.
Instead of scrapping the project altogether, Kodak has decided to move forward alone. The Rochester Company anticipates it will be manufacturing the touchscreen sensor film by the end of this year. Only time will tell how this new technology will affect revenue and profits for Eastman Kodak. However, UniPixel's analysis that the sensor market is experiencing declining prices and decreasing margins is concerning.
Ethan Wade, Financial Advisor
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).