Kodak 2014 Annual Report Download - page 6

Digital Printing
: Digital Printing includes both Inkjet Printing Solutions and Electrophotographic Printing Solutions equipment and related consumables and service.
Net sales for Digital Printing accounted for 18%, 21%, 18% and 17%, of total net revenue for the year ended December 31, 2014, four months ended December 31, 2013,
eight months ended August 31, 2013 and year ended December 31, 2012, respectively.
Packaging and Functional Printing
: Packaging and Functional Printing includes flexographic printing equipment and plates
and related consumables and services, as well
as printed functional materials and components.
Enterprise Services & Solutions:
Enterprise Services & Solutions assists organizations
with challenges and opportunities created by the worldwide digital transformation.
Enterprise Services & Solutions provides print and managed media services that provide customers with solutions for their printing requirements using Kodak technologies;
brand protection technologies and services to help brand owners combat counterfeiters and diverters; and document management services, including expertise in the capture,
archiving, retrieval and delivery of documents. Enterprise Services & Solutions serves enterprise customers in numerous sectors, including governments, pharmaceuticals and
life sciences, consumer and luxury product goods and retail and financial services.
Consumer Inkjet Systems: Consumer Inkjet Systems involves the sale of ink to an existing installed base of consumer inkjet printers.
Net sales for Consumer Inkjet Systems accounted for 6%, 7%, 9% and 11% of total net revenue for the year ended December 31, 2014, four months ended December 31,
2013, eight months ended August 31, 2013 and year ended December 31, 2012, respectively.
Marketing and Competition: The key imperatives and marketing focus for the DP&E businesses are 1) to expand the company’s position in the high-growth markets of
commercial inkjet, packaging and functional printing by leveraging Kodak’s success in developing and commercializing digital printing technologies, including the
SQUAREspot laser writing imaging technology and continuous Stream Inkjet Technology and 2) to partner with and provide professional services to customers in the
commercial printing and digital imaging markets, supporting new customer applications and business solutions. DP&E faces competition from other companies that offer a
range of commercial offset and digital printing equipment, consumables and service. Competition is generally focused on technology, solutions and price.
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Kodak’
s Inkjet Printing Solutions product offering includes the PROSPER Press and PROSPER System Hybrid Components, featuring ultrafast inkjet droplet
generation.
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The PROSPER Press features Stream Inkjet Technology, which delivers a continuous flow of ink that enables constant and consistent operation, with uniform ink
droplet size and accurate placement, even at very high print speeds. Applications of the PROSPER Press include publishing, commercial print, direct mail, and
packaging. The business also includes a large base of customers who continue to use KODAK VERSAMARK Products, the predecessor products to the PROSPER
Press. Users of KODAK VERSAMARK Products continue to purchase ink and media consumables as well as service from Kodak.
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PROSPER System Hybrid Components are also integrated into original equipment manufacturer partner portfolios where the manufacturer combines PROSPER
Writing Systems with its press systems that transport webs of paper and other substrates through the press. Sales of equipment that incorporate the PROSPER Writing
Systems result in recurring revenue from sales of ink and other consumables and equipment service. The level of recurring revenue depends on the application for
which the equipment is used, which drives the total number of pages printed and ink usage.
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Electrophotographic Printing Solutions encompasses the NEXPRESS Platform and the DIGIMASTER Production Platform. The NEXPRESS Platform offers high-
quality, differentiated printing of short-
run, personalized print applications such as direct mail, books, marketing collateral and photo products. The DIGIMASTER
Production Platform uses monochrome electrophotographic printing technology to create high-
quality printing of statements, short run books, corporate
documentation, manuals and direct mail.
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The Packaging business includes Kodak
’
s FLEXCEL NX System and FLEXCEL Direct Platform that offer digitization into the flexographic print market. The
FLEXCEL NX System uses Kodak’
s proprietary SQUAREspot laser imaging technology to produce high resolution imaging that reduces waste and ink usage. The
FLEXCEL Direct Platform delivers process-less high productivity and the environmental benefits of a process-
less solution. These print production capabilities
leverage a portfolio of offset, flexographic, and digital products and services, which help enable customers to preserve brand equity, enhance shelf appeal, and drive
efficiency from design to solution.
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The Functional Printing business leverages Kodak’
s expertise in imaging and materials science and deposition processes to create products using printing processes
that have previously been manufactured using traditional techniques. Functional printing offers many advantages over traditional manufacturing, including cost and
environmental impact. The Functional Printing business is in a start-up phase. Kodak’
s first initiatives in Functional Printing are focusing on two separate solutions
that will provide touch panel sensor films to the touchscreen industry. These solutions consist of a silver halide-
based solution and an additive printing solution,
which are both being commercialized in collaboration with business partners.
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