Kodak will cut additional 3,500-4,000 jobs this quarter worldwide as part of continuing cost-reduction effort, company said Wed. as it reported decreased sales and profit for 3rd quarter. Company said that by year-end it would “have completed or initiated cost actions that will result in total employment reduction in the range of 6,500 to 7,500.” Kodak said revenue dropped 8% to $3.3 billion from $3.6 billion same quarter year ago as profit fell to $96 million (33? per share) from $418 million ($1.36). CEO Daniel Carp blamed weakened sales on “economic downturn [that] intensified,” adding “all signs suggest the weakness will continue into next year.” But he said: “I am pleased that in these challenging times, Kodak generated strong cash flow by reducing inventories and restraining capital expenditures. This allowed us to pare debt and positions Kodak to benefit once the economic rebound begins.” Imaging sector has been hit hard by economic slowdown. Earlier this month, competitor Polaroid filed for Chapter 11 bankruptcy protection as it attempted to restructure $950 million in debt.
Lindows said it was “gearing up to deliver” preview version of its LindowsOS operating system, which San Diego company called “modern and affordable OS for Pentium-based computers.” Company was started recently by former MP3.com CEO Michael Robertson, who has same job at Lindows. OS, at under $100, will be able to run Linux and Windows software. Goal of company, Robertson said, “is to give the consumer a choice when it comes to their computer.” LindowsOS preview release will be available for purchase or digital download in 4th quarter from Lindows.com Web site for under $100. Availability date was unavailable at our deadline.
Maxtor, taking $70 million charge, said 3rd quarter loss widened to $165.7 million from $13.9 million year ago as sales rose to $1.04 billion from $619.3 million. Sales included revenue from recently acquired MMC Technology and Quantum’s Hard Disk Drive (HDD) Group. Purchases of MMC and Quantum HDD resulted in nonrecurring $63.3 million charge for amortization of goodwill. Maxtor, which with acquisition of Quantum HDD became major drive supplier to personal video recorder (PVR) makers, said its blended average selling price in 3rd quarter was $82 and that it retained 35% share of market. Dell accounted for 10% of revenue. Maxtor also introduced its first 40 GB per platter drive and planned to have technology in more than 90% of products in 4th quarter. In 3rd quarter, Maxtor reduced inventory to $236 million from $261 million. It shipped 12.5 million desktop and SCSI drives in 3rd quarter and forecast shipments of 13-13.5 million in 4th quarter. Gross profit rose to $81 million from $62.9 million, but long-term debt jumped to $253.4 million from $92.2 million in Dec. due largely to acquisitions of MMC and Quantum HDD. While Maxtor’s core business remains desktop PCs, CEO Michael Cannon company remained “committed to make the investment to grow the high-end drive” and PVR businesses.
Enix America is backing release of PlayStation title Dragon Warrior VII Nov. 1 with million-dollar marketing campaign that will include extensive print ads, co-op marketing programs with videogame retailers, online promotions and contests, PR campaign to mainstream media. Enix Pres. Paul Handelman said campaign “represents our most aggressive push to date for a single product, as it targets not only the dedicated videogame audience, but also strategic vertical markets as well.”
Canadian govt. cleared Best Buy’s purchase of Future Shop, Best Buy said Wed. It said it expected all conditions of takeover bid to be cleared by Oct. 31 expiration date. Best Buy bid would pay $17 per share (Canadian) for all issued and outstanding Future Shop common shares.
Amazon.com said it still wants to increase selection at its Web site and improve shopping experience for customers to help it achieve goals of improving sales and reaching profitability. As example of what e-tailer already had achieved on those fronts, Amazon CEO Jeff Bezos told analysts in conference call Oct. 23, after our deadline, that Amazon “more than doubled the selection in our consumer electronics store” over last year to “over 45,000 items.”
Standout titles at Electronic Arts (EA) game showcase in N.Y.C. this week included Need for Speed: Hot Pursuit 2 for PS2. EA spokesman told us title, currently in pre-alpha stage of development cycle, was scheduled to ship next spring. He said Need for Speed was key franchise from company’s EA Games division and it spent time evaluating capabilities of PS2 before developing title for system. Objective, he said, was to gain “photo realism” with cars featured in game. Title features more than 20 licensed vehicles from car makers including Ferrari, Lamborghini and Porsche rendered with more detailed graphics than had been possible in past. Cars in game, he said, are about 60% complete at this point. Other titles at game showcase included Cel Damage, debut title for Xbox next month that will ship in mid-Dec. for GameCube. Also spotlighted were Command & Conquer Renegade for PC (Feb. 12), Harry Potter and the Sorcerer’s Stone for Game Boy Advance/Game Boy Color/PC/ PlayStation (Nov. 16, day and date with feature film of same name), James Bond 007 in Agent Under Fire for PS2 (Nov. 17), Motor City Online (Oct. 30), NBA Live 2002 for PS2 (Oct. 30) and Xbox (Dec. 4), Knockout Kings 2002 for PS2/Xbox, Sid Meier’s Sim Golf for PC (late Jan.-early Feb.), The Simpsons Road Rage for GameCube (Dec.), PS2 (Nov. 20) and Xbox (Nov. 13), The Sims Hot Date for PC (Nov. 13), SSX Tricky for GameCube (Dec. 4), PS2 (Nov. 13) and Xbox (Dec. 18), Tiger Woods PGA Tour 2002 for PC/PS2 (mid-Feb.).
Dreamcast versions of Sega Sports NBA 2K2 and Sega Sports Tennis 2K2 started shipping at $39.95 each.
Wireless entertainment provider YourMobile and game developer NuvoStudios are starting games network for mobile phones in U.S. As part of deal, NuvoStudios will make its games including Brain Check and Nuvo Blaster available to mobile phone users via YorMobile network of wireless carrier partners. In return, YourMobile will make its messaging services, phone graphics and ringtones available to NuvoStudios for redistribution to its corporate customers.
Autosound industry was represented at Window’s XP preview Wed. in N.Y. when Aiwa America announced first car stereo CD/receiver to use Microsoft’s Windows Media Audio (WMA) for playback CDs with compressed music files. Company last year was first to introduce car decks with MP3 playback, which also is incorporated in new CDC-MA01 that ships next month at $349.95. Using WMA or MP3 compression, consumers can transfer several hours of music from PCs to blank CDs for mobile playback. Despite greater compression ratio that makes WMA files just 1/3 size of MP3 files, Microsoft has said audio quality is same. Other features of top-shelf CDC-MA01 include 4-channel amp at 50 w per channel, motorized front panel that flips down and away to expose CD slot -- and retracts to disguise player with plain black panel when car’s ignition is turned off. It also has front panel input jack for other music sources, such as cassette player or flash-memory portable. Soundfield-shaping processor adjusts stereo imaging for driver’s position at touch of single button. Aiwa package also includes steering-wheel-mounted wireless remote control for in-dash player.