New York, Untied States — While surging sales of inkjet printers are helping Eastman Kodak Co, the photography pioneer said Yesterday its second-quarter loss widened to US$179 million on slumping revenue from digital cameras and film.

Aiming to cross back to profitability in 2012 after four years of losses, Kodak projected a bigger loss for all of 2011 than previously forecast.

Kodak said its fourth quarterly loss in the last year amounted to 67 cents a share in the April-to-June period. It lost US$168 million, or 63 cents per share, in last year’s second quarter.

Revenue fell 5 percent to US$1.49 billion, with digital-imaging sales little changed at US$1.09 billion but film group revenue down 14 per cent at US$396 million.

The results missed Wall Street expectations. Excluding items, Kodak said it lost 62 cents per share. Analysts surveyed by FactSet expected, on average, an adjusted loss of 59 cents on revenue of US$1.56 billion.

Its shares edged up two cents to US$2.35 in morning trading.

Sales of commercial and consumer inkjet printers, workflow software and packaging rose by a combined 22 per cent in the quarter, led by 48 per cent growth in home printers and ink.

The four fast-growing businesses remain a bright spot in the 131-year-old company’s long and painful drive to recast itself into a reliably profitable player in the turbulent digital-imaging arena. Kodak is hoping they will more than double in size by 2013, accounting for 25 per cent — or nearly US$2 billion — of all sales.

However, Kodak said it now expects 2011 segment losses of US$100 million to US$300 million, compared with a previous projection ranging from breakeven to a US$200 million loss. It also projects a steeper US$200 million to US$400 million loss from continuing operations, versus an earlier forecast of such losses ranging from US$100 million to US$300 million.

Its revenue forecast of US$6.4 billion to US$6.7 billion remains unchanged.

Since 2004, Kodak has reported only one full year profit — in 2007. It has trimmed its work force to 18,800 from 70,000 in 2002.

Kodak’s sales of low-end cameras have been hurt by stiff competition from smartphones and video cameras and by its recent shift to pricier models. But operating losses in its consumer digital imaging division narrowed to US$92 million from US$123 million a year earlier on higher camera and printer ink profits. The segment’s sales slid eight per cent to US$404 million.

Graphic communications sales rose four per cent to US$685 million. But investments in commercial inkjet printing and rising raw material costs widened its operating losses to US$45 million from US$17 million a year earlier.

Kodak expects to turn its first profit from home inkjet printers late this year, and its commercial line of printers is targeted to turn profitable in 2012.

It is banking on replacing the huge profits it once made from film with revenue from ink sales. More than three million people already own Kodak home inkjet printers, and analysts estimate 5.3 million units will be installed by year-end.

Investors are focusing intensely on Kodak’s strategy of brokering licenses or settlements from its trove of digital-imaging patents. It didn’t garner intellectual-property payments in the latest quarter but still expects to haul in US$250 million to US$350 million in revenue this year.

Kodak has been burning through cash as it invests in printer businesses. It now expects to have a year-end cash balance of US$1.6 billion to US$1.7 billion, down from a previous projection of US$1.7 billion to US$1.8 billion.

Mining its 1,100 digital-imaging inventions for repeated cash infusions has become an indispensable tactic driven in large part by Kodak’s digital turnaround. Since 2008, it has generated almost US$2 billion in licensing fees and royalties.

Kodak is suing iPhone maker Apple Inc and BlackBerry maker Research In Motion Ltd, saying their smartphone camera features infringe on image-preview technology it patented in 2001.

The case before the US International Trade Commission, a trade-dispute forum that can block imports of patent-infringing products, has been extended until at least August 30. Kodak is trying to negotiate a licensing deal it estimates could be worth up to US$1 billion.