Spanish Websites Suffer From Poor Performance

WatchMouse research shows that 71% of IBEX websites availability is below industry standards
Press Release

Of the top 35 funds listed on the Bolsa de Madrid (IBEX), 25 have
websites with poor to dramatically poor availability. Many of the sites
are badly accessible or unavailable for more than an hour per month.

The worst site, that of Antena 3 TV, is even unavailable for an equivalent of more than 8 days per month.

This was the conclusion drawn from the first Spanish Site Availability
Index created by WatchMouse, a company supplying monitoring services
for websites and e-commerce applications worldwide. In order to
determine the extent to which the sites of IBEX funds achieve a
satisfactory uptime, WatchMouse ran its monitored the sites
continuously between October 23 and November 11, 2005. Every five
minutes, one of WatchMouse’s test stations tried to access the homepage
of the site, which was expected to download within 8 seconds, without
any errors.

An uptime of 99.9% is seen as the minimum acceptable level. This
percentage is also often quoted in service level agreements (SLAs) with
hosting providers. There were only five sites which achieved perfect
100% availability – Sogecable, Arcelor, FCC, BSCH and Altadis. The
availability of the three worst performers was less than 95%; Acerinox
(94.66%), Gamesa (86.54%) and Antena 3 TV with 73.05%.

Mark Pors, chief technology officer at WatchMouse, stated that he was
“very surprised” by the results. “With several sites, we found an
uptime that was worse than that of many smaller companies. This is
worrying as IBEX funds in particular should give a great deal of
priority to their corporate image. Maximum uptime should be part of the
overall ‘brand performance’.”

Pors suspects that for some sites, the popularity could be a reason for
poor availability. “Some of the sites belonging to IBEX funds will get
a lot of traffic. However, this is no excuse; if we look at large
online brokers in the US, for example, all achieve an uptime in excess
of 99.9%.”

A complete overview of the monitoring results of the WatchMouse Site Availability Index, listing the 35 sites, can be found on

About WatchMouse

Companies can easily monitor their own Internet sites using
WatchMouse’s monitoring service. WatchMouse has been monitoring
Internet sites and e-commerce applications for companies throughout the
world since 2002. WatchMouse has thousands of customers in more than 70
countries. The services supplied by WatchMouse are available in eight
languages, and analysis are performed from various locations and over
numerous networks, using a world-wide monitoring network.

Further information can be found at:

Epson’s Latest Lightfastness Ratings

Epson has released new lightfastness ratings from testing done for them by the Wilhelm Instutute.
Below are the latest figures from Epson on expected display life of
their inks and papers. All the new R series printers with the HQ inks
sit in the second column.


6 color Photo 825, 925, 960, 1280

 6 color HQ inks – R and RX series

DURABrite Ink  PictureMate Ink   UltraChrome Ink

UltraChrome Hi-Gloss Inks 
 Premium Photo Papers


 Premium Glossy Photo Paper

    23 years       85 years  104 years
 Premium Luster Photo Paper – Cut Sheet

   22 years

     71 years

 64 years

 Premium Semigloss Photo Paper

  22 years       77 years

 In progress

 Matte Papers

 Double-Sided Matte Paper

 15 years

 Enhanced Matte Paper

   71 years

   76 years

 110 years

 Matte Paper heavyweight

 18 years

  30 years  105 years

     Over 150 years

 Photo Quality Ink Jet Paper

   8 years

       In progress

 PremierArt Matte Scrapbook Photo Paper for Epson

     94 years

   108 years

 In progress

 Premium Bright White Paper

  5 years

 74 years

     In progress

 Fine Art Papers

 Ultrasmooth Fine Art Paper

         108 years

Epson Velvet Fine Art Paper           61 years

 Watercolor Paper Radiant White

         92 years

 PremierArt Water-Resistant Canvas for Epson

         75 years

 Glossy Papers

ColorLife Photo Paper

 27 years

 36 years

DURABrite Ink Glossy Photo Paper

    55 years       
 PictureMate Photo Paper

       104 years

 Semigloss Scrapbook Photo Paper

 27 years

 36 years


Epson use the Wilhelm Institute for their testing. See the Wilhelm Institute website here. You can also read an interview I did with Henry Wilhelm here.

Interesting from the above is that the Epson dye inks are no better
than, and in some cases worse than, Canon’s latest dye printers using
ChromaLife 100 inks, with 30 year display lightfastness.

E Ink

E Ink Corporation makes electronic paper display devices
Photos and the press releases later in this article supplied by E Ink Corporation.

E Ink is the company probably furthest along in the alternative
display/print technology area, in terms of getting real products into
the marketplace, at least. Electronic Ink is a clever use of existing
technology rather than using exotic, and thus expensive, materials.
This is probably why E Ink has been successful getting products
shipping where other companies have floundered around for much longer
at the development stage.

The basic concept of E Ink is quite simple. One version uses particles
suspended in a clear fluid. Two particles are used, positively charged
white particles and negatively charged black particles. The ink is
printed onto a plastic film and another sheet containing the electrodes
is sandwiched with it. When a charge is applied to the electrodes
either the black or white particles are attracted to the electrode on
the back of the ‘paper’ and the other color particles go to the
visible, top of the fluid. Simple and elegant. If multiple electrodes
are placed within the area of one fluid dot then a mix of visible black
and white particles can be shown, increasing the resolution and
allowing grayscale dithering to occur, just as ink an inkjet printer.

The result is a thin, flexible plastic film that does not look like
paper but that allows the image to be readily updated. Moving displays
are also possible, as is color by adding a color filter layer to the

Products shipping using the E Ink technology are the Sony LIBRie in
Japan, an electronic book reader, point of sale signage for an Xbox
game, transporation signage in Europe by VIT and other retail signage

Below are some press releases which add more information and show other uses and upcoming developments.


E Ink Corporation, the leading source of electronic paper display (EPD)
technology, and Toppan Printing Co. Ltd., the world’s leading supplier
of Color Filters for the flat panel display industry, today announced
that their engineers have built a full-color electronic paper display
that is suitable for mass production. The display will be shown at the
E Ink booth of the annual FPD International trade show in Japan
attended by over 60,000 visitors from around the world.

This electronic paper color prototype achieves 12-bit color in a
400×300 pixel format with resolution of 83 pixels per inch, using a
custom color filter from strategic partner Toppan. The color filter
design has a high-brightness layout (RGBW) that preserves the
paper-like whiteness of the background page while enabling deep blacks
for text and a range of colors and tones for images. A smart algorithm
uses color sub-pixels to smooth black and white text, for enhanced
legibility equivalent to a printer. The display diagonal is 6 inches,
similar to a paperback book in size.

“No one has ever shown a low-power color display that looks this good
and can be mass manufactured in a practical way,” said Russ Wilcox, CEO
at E Ink, “The gates are finally open for product designers to use
color electronic paper in mobile devices.”

E Ink’s electronic ink technology creates an image that looks like a
printed page from all angles and maintains the same contrast ratio
under all lighting conditions, including direct sunlight. Aimed at
handheld devices, the display uses up to 100 times less energy than a
standard liquid crystal display (LCD), so product designers can shed
weight and greatly extend battery life.

“Supporting a graphical user interface is critical for mobile devices,”
said Ryosuke Kuwada, VP of Sales and Marketing at E Ink, “Unlike
printed paper, our display can be updated in a fraction of a second,
enabling menus, scroll bars and animation. The screen can easily switch
between black and white text or color windows and icons.”

One application for the color electronic paper display module is for
seeing digital information outdoors. Digital cameras, ATMs, kiosks, GPS
devices and electronic signs can be seen clearly even under sunlight
using the new display module. The display will also be useful for any
portable electronic device that has a battery. The new display module
will let cellphones, PDAs, and wireless tablets run substantially
longer on a single charge, enabling designers to make the devices more
compact by cutting battery size and weight.

Mass production of color electronic paper displays is expected to start
at the end of 2006, with future plans for flexible versions.


E Ink Corporation in USA, the leading supplier of electronic paper
display technology, today announced that LG.Philips LCD (NYSE: LPL,
KRX: 034220), one of the world’s leading innovators of thin-film
transistor liquid crystal (TFT-LCD) technology, and E Ink have built a
10.1″ flexible electronic paper display. The display will be shown at
the FPD International trade show in Japan, attended by over 60,000
visitors each year.

Less than 300 microns thick, the paper-white display is as thin and
flexible as construction paper. With a 10.1″ diagonal, the prototype
achieves SVGA (600×800) resolution at 100 pixels per inch and has a
10:1 contrast ratio with 4 levels of grayscale.

E Ink® Imaging Film is a novel display material that looks like printed
ink on paper and has been designed for use in paper-like electronic
displays. Like paper, the material can be flexed and rolled. As an
additional benefit, the E Ink Imaging Film uses 100 times less energy
than a liquid crystal display because it can hold an image without
power and without a backlight.

LG.Philips LCD and E Ink selected a steel foil material that could be
supplied by Sumitomo Corporation in high volume and which was developed
by Nippon Steel Corporation (5401.JP), the leading steel company in
Japan. The flexible foil is a super-thin, extremely flat,
high-performance steel tha
t can easily withstand the high temperatures
of a TFT production process.

LG.Philips LCD combined both materials to manufacture the display panel
at an existing pilot TFT line in Korea. LG.Philips and E Ink jointly
designed the display electronics and produced the final prototype to
achieve the world’s largest high-resolution fle
xible electronic paper

“We all need flexible displays,” said Russ Wilcox, CEO of E Ink, “They
are 80% thinner and lighter than glass displays, and they do not break
like glass displays. You can roll them up and put them in your pocket.
You can curve them around the outside of a cellphone. Or you can throw
them in your briefcase like a newspaper. As Galileo famously told us,
the world is not flat.”

Additional Information

About LG.Philips LCD

LG.Philips LCD [NYSE: LPL, KRX: 034220] is a leading manufacturer and
supplier of thin film transistor liquid crystal display (TFT-LCD)
panels. The Company manufactures TFT-LCD panels in a wide range of
sizes and specifications primarily for use in notebook computers,
desktop monitors and televisions. Headquartered in Seoul, South Korea,
LG.Philips LCD currently operates six fabrication facilities in Korea
and has approximately 15,000 employees in locations around the world.
For more information about the Company, please visit LG.Philips LCD makes “Technology you can see!”

About Nippon Steel Corp.

One of the world’s largest steelmakers with nine steelworks and one
processing works, Nippon Steel can satisfy the diverse needs of the
construction, automotive and many other industries through constant
technical innovations, product diversification and sophistication. The
company’s effort to popularize Steel House attracts attention because
it has excellent seismic resistance and helps conserve forestal

The company’s pursuit of new product development has led to the birth
of high-strength steel sheets which enable car weight reduction and
fuel economy enhancement. One of the latest products is Super Dyma,
which is fifteen times more rust-resistant than conventional galvanized
steel sheets. Eco-products which are free of harmful chemicals such as
hexavalent chromium and lead are widely used in home electric
appliances like video cassette recorders. For more information visit:

About Sumitomo Corp.

Sumitomo Corporation conducts commodity transactions in all industries
utilizing worldwide networks and also provides related customers with
various financing, serves as an organizer and a coordinator for various
projects, and invests in businesses from the information industry to
the retailing industry. Sumitomo Corporation thus shows great
diversification as an Integrated Business Enterprise. For more
information visit:


Citizen Watch Co., Ltd. (president, Makoto Umehara), T.I.C.-Citizen
Co., Ltd. (president, Toshio Takahashi), and E Ink Corporation
(Massachusetts, U.S.A., president & CEO, Russell J. Wilcox) are
pleased to announce the demonstration of the world’s first curved clock
product to utilize an electronic paper display (EPD). This unique
design is enabled by E Ink® Imaging Film. This easy-to-read, low-power
display component is fully conformable, allowing product designers more
creative freedom than ever before. Citizen Watch Co. and T.I.C.-Citizen
Co. worked closely with E Ink to develop the electronic paper display
used in this new clock.

Displays made with E Ink Imaging Film provide a number of benefits over traditional display technologies, including:

  • Exceptional Readability : Roughly twice the contrast of a
    reflective LCD, EPD’s can be easily read in bright sunlight or in dimly
    lit environments and at virtually any angle.
  • Low Power Consumption: In addition to the fact that no
    backlighting is required, the display also has an inherently stable
    “memory effect” which requires no power to maintain an image – both of
    which drastically increase the battery life. The result is 1/100 the
    power consumption of traditional display options.
  • Versatile, Flexible Form: E Ink Imaging Film allows product
    designers to create entirely new designs that were never possible
    before. This thin, flexible display can be used to create curved,
    eye-catching shapes.

These benefits allow the clock to be installed in locations that would
otherwise be difficult with other technologies. In applications where
portability is valued, this extended battery life enables the clock to
be easily used as a “mobile” product.

Citizen Watch Co. and T.I.C.-Citizen Co. have not yet announced a
launch date for this product, but it is expected to be commercialized
in Japan in 2005. Plans for the international launch are under
consideration, along with other design interpretations.

About Citizen Watch Co.

Founded in 1930, Citizen Watch Co. was named after the policy, to
provide the best products and services to all “citizens” in the world.
Citizen is recognized as a worldwide leader in Watch Industry,
especially in advanced technology. Citizen has consistently drawn on
its leadership in watch technologies to create new possibilities in
information and electric equipment, precision parts and industrial
machinery. At the same time, Citizen takes on the challenge of
next-generation ultra-precision fields, by moving beyond the
conventional thinking about watch technologies and precision
processing. Citizen news can be found at:


Lets Engineers Easily Design a Handheld Device Using an Electronic Paper Display

E Ink Corporation, the leading source of electronic paper display (EPD)
technology, today announced that it will offer samples of electronic
paper displays through the AM-100 EPD Prototype Kit, enabling
prototyping across a wide range of display applications. The
high-resolution display in this kit is bright, high-contrast, thin,
lightweight, viewable from all angles and able to operate with
dramatically less energy than liquid crystal displays (LCDs).

“If your job is to design a product with a battery and a display, then
you need to understand what an electronic paper display can do for
you,” said Russ Wilcox, CEO at E Ink. “The best way to do that is to
buy this kit and try it out for yourself.”

This is the first high-resolution developer kit that contains a
graphical electronic paper display. E Ink’s EPD technology offers the
bright, bold look of ink-on-paper and is ideal for mobile devices
because it can be read in any lighting condition, including direct
sunlight, and at any viewing angle – just like paper. A resolution of
170 pixels per inch (PPI) and the ca
pability of displaying four gray
levels give this 6″ diagonal display text quality with the clarity of
newsprint. Once updated, the display image remains visible without
energy, so the power draw of the display is reduced by up to 99%
compared to traditional LCDs.

“This kit has al
l the essential tools for building innovative product
prototypes using an electronic paper display,” explained Ryosuke
Kuwada, vice president of sales and marketing at E Ink. “Product
companies are discovering they can move to bigger screens, and at the
same time, reduce the product weight because of the power savings.”

In addition to the display module, the kit also includes a development
board containing an Intel XScale processor and the Linux operating
system, as well as I/O support for MMC cards, Bluetooth, and USB, and
open source software drivers and applications.

“Controlling your new electronic paper screen from a desktop PC would
be really limiting,” explained Holly Gates, senior electrical engineer
at E Ink. “Most of our customers want to make working prototypes that
are portable. So we put the control electronics onto a tiny board you
can slip right into your own casing and operate from batteries. Product
engineers could easily build their own electronic reader with this kit.”

High-resolution electronic paper displays are created using an E Ink®
Imaging Film which is then laminated to a glass-based thin film
transistor (TFT). The result is an EPD module that is sold to
innovative product companies. E Ink has partnered with Prime View
International (PVI) of Taiwan as the leading supplier of active matrix
display modules. High volume purchases of displays will be sold
directly by PVI.

Products using E Ink’s high-resolution display technology were first
launched in April 2004 by SONY Corporation in its LIBRIé electronic
book device, available in Japan. In addition to SONY, Seiko, Citizen
and Microsoft have used E Ink’s EPD technology in innovative

E Ink has active customers in the areas of electronic readers, watches,
clocks and signs. Future uses for E Ink’s technology include
smartcards, medical devices, portable consumer electronics, and mobile

For ordering and more information about the kit, please visit:


Microsoft Utilizes Revolutionary Point-of-Purchase Technology for Latest XBOX Game Release Promotion

Neolux Corporation, a leading manufacturer and distributor of
advertising and promotional displays, today announced the first major
commercial sale within the electronic entertainment industry of
Ink-In-Motion®, a flashing electronic display that combines the proven
promotional effectiveness of motion with the visual appeal of
ink-on-paper. Microsoft Corporation is using this cutting edge
point-of-purchase (POP) technology to promote its latest XBOX offering,
Bioware’s Jade Empire, in stores this week.

In addition to its paper-thin package, a typical Ink-In-Motion display
can animate continuously for up to 6 months using just two AA
batteries. These displays are ideal for high-impact POP signs in retail
environments where access to power outlets are often limited. In
addition to long battery life, these displays can be easily viewed from
all angles and under virtually any lighting condition.

“We are very happy to have Microsoft as an Ink-In-Motion customer. This
unique technology was able to meet the customer’s requirements for
effective animation, easy installation, and on-time distribution,” said
Woo-Jong Kang, CEO of NeoLux.

The Ink-In-Motion solution that Neolux created for Jade Empire was
unlike any other motion POP solution Microsoft has used. Microsoft was
particularly pleased with the displays “eye-catching” appeal, which
will ensure consumer stopping power, and its thinness and long battery
life allow for an easy roll-out to their distribution channel.

The core enabling technology for Ink-In-Motion is an electronic paper
display material manufactured by E Ink Corporation called electronic
ink. Processed into an imaging film, this electronic ink layer is
sandwiched between a customized electronics layer and a color overlay
to give marketers a wide range of design freedom for effective
advertising and promotional campaigns.

“POP designers have long recognized the value of adding animation, but
they faced troublesome limitations in design, space, cost, and power.
Now, with Ink-In-Motion, they can add a simple motion component that
builds their brand, integrates easily, and lasts for months on
batteries,” said Darren Bischoff, senior marketing manager for E Ink.

NOTE: For ordering information, visit Neolux’s Ink-In-Motion website at


Joint Development Between E Ink Corporation and Seiko Epson Yields Revolutionary Curved Watch Display

E Ink Corporation, Seiko Epson Corporation, and Seiko Watch Corporation
are pleased to announce the demonstration of the world’s first watch to
utilize an electronic paper display. This ‘Future Now’ design
incorporates an easy-to-read, ultra-thin, low-power display integrated
into an eye-catching curved band.

The unique electronic paper display module in this Seiko watch is the
result of a joint development effort, bringing together E Ink’s
‘electronic ink’ technology and Seiko Epson’s advanced display
manufacturing and electronic circuitry techniques. When combined, these
technologies offer a wide range of display design possibilities –
including flexibility!

This electronic paper technology enables a new generation of personal devices with the following display benefits:

  • Ultra High Contrast: The display is made up of pure black and
    pure white particles which allow the same contrast as found on a
    printed page; twice the contrast, in fact, of an LCD panel. It can be
    easily read in either bright sunlight or in dimly lit environments.
  • Ultra Thin / Flexible: The display is much thinner than is
    possible with any conventional display technology, analog or digital.
    The display can also be flexible allowing designs never before
  • Low Power Consumption: Since the display is readable under very
    low light conditions, no backlighting is required. The display also has
    an inherently stable ‘memory effect’ that requires no power to maintain
    an image. For these reasons, battery life can be extended.
  • Seiko expects to commercialize this ‘Future Now’ watch in Japan
    by the spring of 2006. Plans for the international launch are under
    consideration, along with other design interpretations.

NOTE: The watch prototype was shown by Seiko Watch Corporation for the
first time at the Baselworld Watch and Jewelry Show held in Basel,
Switzerland from 31 March to 7 April 2005.

Additional Information

About Epson

Epson is a global leader in imaging products including printers,
projectors and LCDs. With an innovative and creative culture, Eps
on is
dedicated to exceeding the vision and expectations of customers
worldwide with products known for their superior quality,
functionality, compactness and energy efficiency. Epson is a network of
84,899 employees in 110 companies around the world, and is proud of its
ongoing contributions to the glob
al environment and to the communities
in which it is located. Led by the Japan-based Seiko Epson Corp., the
Group had consolidated sales of 1,413 billion yen in fiscal 2003.

About Seiko Watch Corporation

Since being established in 1881, Seiko has been the innovator of
several revolutionary time pieces commencing with the production of
Japan’s first wristwatch in 1913 and including the creation of the
world’s first quartz watch in 1969. Watch operations have been handled
by Seiko Watch Corporation since July 1, 2001. Seiko Watch Corporation
has a comprehensive marketing program, including product planning,
advertising campaigns, sales activities targeting retail stores, and
after-market servicing.


E Ink Corporation, the leading developer and marketer of electronic
paper display technology, today announced that Intel Capital has
invested an undisclosed amount in the company.

“Intel Capital has a global reputation and brings a wealth of resources
beyond simple cash,” said Russ Wilcox, President and CEO.

“We are pleased to receive Intel Capital’s investment and will be using
this funding to help improve the next generation of our paper-like
display technology through increased R&D,” said Ken Titlebaum, Vice
President of Finance.

E Ink Corporation products enable a new type of electronic display with
a bright white background and crisp text and pictures similar to
printed documents. Once updated, the display can maintain an image
without using power, enabling over 90% power savings compared to
traditional displays and greatly extending the battery life of portable
devices. Some versions are available on plastic and can be flexed and
rolled, combining the complete look and feel of a paper document with
the versatility of digital control and wireless update. The company’s
products are used in electronic book devices, information kiosks, and
advertising signage. Future uses for E Ink’s technology include
smartcards, watches, clocks, medical devices, consumer electronics, and
mobile phones.


“Yomiuri Global Newspaper” Delivers Fresh News to Visitors Twice Daily

TOPPAN Printing Co., Ltd. (Head Office: Chiyoda-ku, Tokyo; President:
Naoki Adachi) will exhibit a large-scale wall-sized newspaper utilizing
E Ink Electronic Paper at EXPO 2005 Aichi (Nickname: Ai-Chikyuhaku;
Official name: The 2005 World Exposition, Aichi, Japan) which starts
March 25, 2005.

This wall-size newspaper application of Electronic Paper is called
“Yomiuri Global Newspaper – Electronic Paper” (Issued by: The Yomiuri
Shimbun; Cooperation: TOPPAN Printing) and will be exhibited at the
Yomiuri Newspaper booth in the Global House, which is the symbol
pavilion of the EXPO, located in the Nagakute Area. The latest news
will be displayed twice daily (morning and evening) through the
duration of the EXPO (March 25th – September 25th, 2005).

This large wall-size newspaper is built from 272 individual electronic
paper “tiles,” which is a combination of an E Ink® Imaging Film
laminated onto a printed circuit board with pixel electrodes. The
result is an electronic paper newspaper approximately 2.2 meters high
and 2.6 meters wide, the world’s largest of its kind.

It uses a design layout similar to actual newspaper, where the
headlines and article text are displayed on monochrome electronic paper
and color photos are displayed on an LCD panel.

Specifications of the Wall-Sized Electronic Newspaper:

  • Display Size: 2176 mm (H) x 2600 mm (W) [7.2 feet x 8.5 feet]
  • 272 Electronic Paper Tiles of 68 mm (H) x 260 mm (W) / 1 45″ LCD Monitor, approx. 560 mm (H) x 990 mm (W)
  • Display Control Method: Electronic Paper: Segmented / LCD Monitor: TFT Active Matrix
  • Pixel Size: 4mm square

Power Consumption:

  • Electronic Paper: approx. 10W (less than 16W during data processing)
  • LCD Monitor: approx. 250W

You can find more information about EXPO 2005 at:

NOTE: TOPPAN Printing Company and E Ink Corporation have had a
strategic partnership since 2001 spanning the development, manufacture
and marketing of electronic paper displays. Most recently, E Ink and
TOPPAN announced a manufacturing and marketing agreement for large area
electronic paper displays ( Toppan is also an investor in E Ink Corporation.

About E Ink Corporation

E Ink Corporation is the leading developer of electronic paper display
(EPD) technologies. The company’s display technology is currently sold
in Japan as a component in the LIBRIé electronic book by SONY
Corporation. Future technology developments will enable many new
applications through ultra-thin, lightweight, rugged, flexible, full
color displays. E Ink is a private corporation that includes among its
investors Toppan Printing Company, Royal Philips Electronics, The
Hearst Corporation, Air Products and Chemicals, Inc.,
Universal-Vivendi, Gannett Co., Inc., and Motorola, Inc. E Ink recently
announced customer relationships with Vossloh Information Technologies,
Neolux Inc. and Midori Mark, Inc. E Ink news can be found at:

Kodak Looses a Lot of Money

Third quarter financial results are not positive for Kodak
In the third quarter Kodak sales went up by 5%. However, it gets
interesting when you examine the breakdown. Digital products and
services rose by 47%, which is a great result. However traditional
product revenue fell by 20% in the quarter. In total, Kodak lost
US$1.029 Billion in the quarter.

The figures give hope for Kodak in the great sales result in their
digital products and services, but their is undoubtedly more pain to go
as Kodak restructures into a digital company.

The full financial press release is given below.

Kodak’s 3rd-Quarter Sales Rise 5% to $3.553 Billion

Digital Sales Surge 47%, Led by Graphic Communications and Consumer
Portfolio; 3rd-Qtr GAAP Net Loss Totals $1.029 Billion ($3.58 Per
Share), Largely Reflecting Tax Valuation Allowances and Accelerated
Restructuring Charges;  Company Reaffirms Three Key Metrics from
September Investor Meeting: Digital Revenue Growth, Digital Earnings
Growth and Cash Generation

ROCHESTER, N.Y., October 19 — Eastman Kodak Company reported that
revenue rose 5% in the third quarter, led by a 47% increase in the sale
of digital products and services. The performance primarily reflects
strong demand for the market-leading offerings from the company’s
Graphic Communications and consumer digital portfolio.

On the basis of generally accepted accounting principles in the U.S.
(GAAP), the company reported a third-quarter loss of $1.029 billion, or
$3.58 per share, largely stemming from a $900 million ($3.13 per share)
non-cash charge to record a valuation allowance against the net
deferred tax assets in the U.S. This reservewas an accounting
requirement resulting from the company’s continuing losses in the U.S.
created by the accelerated and extensive restructuring activity
required by the decline in the traditional business.

For the third quarter of 2005:

  • Sales totaled $3.553 billion, an increase of 5% from $3.374
    billion in the third quarter of 2004. Digital revenue totaled $1.888
    billion, a 47% increase from $1.283 billion. Traditional revenue
    totaled $1.661 billion, a 20% decline from $2.085 billion.
  • The GAAP net loss was $1.029 billion, or $3.58 per share,
    compared with GAAP earnings of $458 million, or $1.60 per share, in the
    year-ago period.
  • The company’s loss from continuing operations in the quarter,
    before income taxes, interest, and the net of other income and charges,
    was $103 million, compared with earnings from operations of $3 million
    in the year-ago quarter.
  • Digital earnings were $10 million, compared with $6 million in
    the year-ago quarter. This includes the favorable impact of $18 million
    in the third quarter of reallocating certain costs from the digital
    business to the traditional business, as well as a $5 million charge
    for reducing the useful life of certain digital assets. To calculate a
    common basis of comparison with the company’s full-year digital
    earnings projection, as adjusted for the two accounting changes cited,
    requires the exclusion of $44 million of costs associated with Creo’s
    operating results and purchase accounting for the KPG and Creo
    acquisitions, as well as the exclusion of $12 million of in-process
    research and development credits. On this basis, digital earnings in
    the third quarter were $42 million, and they were greatly improved in
    September versus the first two months of the quarter. This supports the
    company’s previously expressed view that the bulk of Kodak’s digital
    earnings in 2005 will be generated in the last four months of the year.

“In the third quarter, our digital revenue exceeded our traditional
revenue for the first time on a quarterly basis, representing another
milestone in our digital transformation,” said Antonio M. Perez, Chief
Executive Officer and President, Eastman Kodak Company .  “As
importantly, on the basis outlined above, our digital earnings were 3.5
times greater than in the year-ago quarter, and September’s significant
improvement increases our confidence for strong digital earnings in the
fourth quarter.

“We remain committed to the 2005 cash flow target presented at our
Sept. 28 investor meeting,” Perez said. “For the quarter, our cash flow
performance was consistent with our expectations, our cash balance
increased, and our debt decreased sequentially from the second quarter.
We are delivering on the three key metrics by which we are managing the
company: digital revenue growth, digital earnings growth and the
generation of cash.

“Within the business units, we continue to see widespread evidence of
the success of our digital transformation,” Perez said. “Our Graphic
Communications Group continues to demonstrate strong growth, coming off
a very successful Print 05 trade show in September. In our Health
Group, operating margins in the quarter rebounded from a soft start
earlier this year, led by solid sales of computed radiography systems.
On the consumer side, we began shipping last month the groundbreaking
EASYSHARE-ONE zoom digital camera, making Kodak the first company to
bring a Wi-Fi consumer digital camera to market.”

Other third-quarter 2005 details:

  • Net cash provided by operating activities from continuing
    operations, as determined in accordance with GAAP, totaled $370 million
    in the third quarter, compared with $411 million in the year-ago
  • Gross Profit on a GAAP basis was 26.3%, down from 32.0%,
    primarily because of increased restructuring activity compared with the
    year-ago period.
  • Selling, General and Administrative expenses were 18.9% of sales,
    up from 18.6%, primarily reflecting the additional costs incurred
    through the ownership of KPG and Creo.
  • Debt decreased $158 million from the second-quarter level, to
    $3.563 billion as of Sept. 30. So far this year, debt has increased
    $1.242 billion, reflecting more than $1.5 billion relating to
  • Kodak held $610 million in cash on its balance sheet as of Sept.
    30, up from $553 million on June 30, and down from $1.255 billion at
    the end of 2004. The company expects its cash balance to exceed $1
    billion by the end of 2005.

“Even after paying down debt and spending more on restructuring, I am
pleased with our ability to increase our cash balance from the previous
quarter,” said Robert H. Brust, Kodak’s Chief Financial Officer. “We
remain confident in our ability to generate cash, and we note that the
$900 million charge involving deferred tax assets in the U.S. has no
cash impact. What’s more, the net deferred tax assets can be realized
in the future. The write-down results from current and expected future
losses in the U.S. created by our accelerated and extensive
restructuring actions. As a result, management has concluded that a
valuation allowance is required under U.S. accounting rules.”

Segment sales and results from continuing operations, before interest,
taxes, and other income and charges (earnings from operations), are as

  • Digital & Film Imaging sales totaled $1.995 billion, down
    16%. Earnings from operations for the segment were $108 million,
    compared with $230 million a year ago. Highlights for the quarter
    included a 48% increase in the sales of KODAK PICTURE MAKER kiosks and
    related media; a 45% increase in sales of home print
    ing products and
    media, including KODAK EASYSHARE Printer Docks; and a 20% increase in
    consumer digital capture sales, which includes KODAK EASYSHARE cameras.
  • Graphic Communications Group sales were $886 million, up 158%,
    largely reflecting the acquisition of KPG and Creo. Earnings from
    ations in the third quarter were $15 million, compared with a loss
    of $16 million in the year-ago quarter.
  • Health Group sales were $635 million, down 1%. Earnings from
    operations for the segment were $90 million, compared with $106 million
    a year ago. Highlights included a 24% increase in digital capture
    systems, reflecting a rebound in sales of computed radiography systems,
    as well as strong sales of healthcare information systems. 
  • All Other sales were $37 million, up 48% from the year-ago
    quarter. The loss from operations totaled $55 million, compared with a
    loss of $53 million a year ago. The All Other category includes the
    Display & Components operation and other miscellaneous businesses.

“As I indicated at our investor meeting on Sept. 28, we anticipate that
more than 40% of the company’s total digital revenue in 2005 will occur
in the last four months of the year, reflecting the seasonality common
to digital markets and the company’s acquisitions earlier this year,”
Perez said. “As those sales occur, we will enjoy increased digital
earnings, as September’s performance shows.

“We’ve made it clear that we measure success against the three critical
metrics that best reflect the company we are building – digital revenue
growth, digital earnings growth and cash flow,” Perez said. “In each
category, our performance in the third quarter was in line with the
expectations presented on Sept. 28, and we intend to carry this
momentum into the fourth quarter and 2006.”

Digital and traditional revenues, digital earnings, and digital
earnings excluding certain purchase accounting costs for KPG and Creo
and operating results for Creo are non-GAAP financial measures as
defined by the Securities and Exchange Commission’s final rules under
“Conditions for Use of Non-GAAP Financial Measures.” Reconciliations of
these measures included in this press release to the most directly
comparable GAAP financial measures can be found in the Financial
Discussion Document attached to this press release.

Certain statements in this press release may be forward looking in
nature, or “forward-looking statements” as defined in the United States
Private Securities Litigation Reform Act of 1995. For example,
references to expectations for the Company’s earnings, revenue, and
cash are forward-looking statements.

Actual results may differ from those expressed or implied in
forward-looking statements.  In addition, any forward-looking
statements represent our estimates only as of the date they are made,
and should not be relied upon as representing our estimates as of any
subsequent date.  While we may elect to update forward-looking
statements at some point in the future, we specifically disclaim any
obligation to do so, even if our estimates change.  The
forward-looking statements contained in this press release are subject
to a number of factors and uncertainties, including the successful:

  • Implementation of our digital growth strategy and business model;
  • Implementation of a changed segment structure;
  • Implementation of our cost reduction program, including asset
    rationalization, reduction in general and administrative costs and
    personnel reductions;
  • Implementation of, and performance under, our debt management program;
  • Implementation of product strategies (including category
    expansion, digitization, organic light emitting diode (OLED) displays,
    and digital products);
  • Implementation of intellectual property licensing and other strategies;
  • Development and implementation of e-commerce strategies;
  • Completion of information systems upgrades, including SAP, our enterprise system software;
  • Completion of various portfolio actions;
  • Reduction of inventories;
  • Integration of newly acquired businesses;
  • Improvement in manufacturing productivity and techniques;
  • Improvement in receivables performance;
  • Reduction in capital expenditures;
  • Improvement in supply chain efficiency;
  • Implementation of our strategies designed to address the decline in our analog businesses; and
  • Performance of our business in emerging markets like China, India, Brazil, Mexico and Russia;

Forward-looking statements contained in this press release are subject to the following additional risk factors:

  • Inherent unpredictability of currency fluctuations and raw material costs;
  • Competitive actions, including pricing;
  • Changes in our debt credit ratings and our ability to access capital markets;
  • The nature and pace of technology evolution, including the analog-to-digital transition;
  • Continuing customer consolidation and buying power;
  • Current and future proposed changes to tax laws, as well as other
    factors which could adversely impact our effective tax rate in the
  • General economic, business, geopolitical, regulatory and public health conditions;
  • Market growth predictions, and
  • Other factors and uncertainties disclosed from time to time in our filings with the Securities and Exchange Commission;
  • Any forward-looking statements in this press release should be evaluated in light of these important factors and uncertainties.

Printable Displays for the Moving Image

Siemens shows color display technology that can be printed onto various surfaces and can display a moving image.
At the Plastics Electronics trade fair in Frankfurt this month, Siemens
demonstrated small color displays that can be printed using commercial
printing processes onto paper and plastics. These very low cost
displays will come to market in 2007.

The material consists of an electrochromic material which absorbs
different frequencies of light when an electric voltage is applied to
the molecules. This means that they change color when electricity is
applied. A conductive plastic foil serves as the other electrode and as
a clear window that protects the chemical layer in the process. The
current process embeds a small silicon chip to control the system but
work is progressing on using a fully printable circuit, so that the
whole device can be printed onto the paper or plastic substrate. Even
the batteries can be printable. Such batteries only last a few months,
but this still makes then suitable for many applications in packaging
and things like newspapers. Other work is being done on using printable
antennas to receive power from a local source. Siemens is working with
a partner company to integrate the process into the packaging and
production process.

Unlike other developments in thin and cheap displays, like OLED, this
new technology does not emit light and so is viewed in the natural
light of the environment. This makes then readily viewable in bright
sunlight, for example, which can wash out other displays. In this sense
it is similar to other developments like electronic or e-ink.

Georgia Tech Developing Way to Stop Digital Cameras

In a move that might help out those celebrities who get caught with their pants down (or doing something else embarrassing), researchers are working on a way to stop a digital camera getting a picture.
G.I.T. researchers are developing a technology that can block a digital camera from taking a useable picture.

The technology works in three stages:

  • First an infrared emitting array beams out IR light;
  • Second a sensor looks for the reflection of the IR light off of the digital camera’s sensor;
  • Lastly when a digital camera is detected a light projector is
    used to blast the camera with an animated and constantly changing
    pattern of light and color, which confuses the autoexposure system and
    renders a mostly black picture.

But digital camera toting paparazzi have little to fear at present.
Firstly it is only in development and, secondly, it has some major
limitations. These limitations are such that it is unlikely to work
with digital SLRs because up until the instant of shooting the CCD is
covered by the mirror and shutter. Also some digital compact cameras
use a physical shutter, which would limit the window of time for
the system to detect the camera to the instant the shot is being taken.

Others are working along similar lines, such as a HP development that
requires a circuit in the camera that will blur the picture if a ‘no
shoot’ signal is detected.

All these systems seem to be very early developments, and so there
is no need to panic yet. But time could change that. Since one can only
imagine governments loving such technology as it
would allow them to put a no photo field around anything that they did
not want documented, we can only hope that these developments go no
further. After all, openness and accountability are cornerstones of

For a video of the device in action, click here.

Apple iPhone a yawn

The new Apple/Motorola mobile/cell phone does not impress
The new Motorola ROKR cell phone with iTunes really fails to impress
me. It only handles 100 songs and also it is based on a fairly
uninspiring phone. All a bit of a yawn. My new cell phone, the Sony
Ericsson K750i plays music and takes a Sony Memory Stick of up to 1GB
(currently) and 4GB when available. This is a much more serious player,
just that it doesn’t play nicely with iTunes and I have to manually
drag files over to it. Ther eis also the issue of whether Apple fans
really want a Motorola phone design, or want that Apple flair.

So what does it mean? Well it does show Apple’s intention to milk the
iTunes/iPod for as much as it can and a willingness to go into new
product areas. So we can but hope that this is just a first, tiny step
in a longer journey that will bring us phones designed with that Apple

What the New Canon Releases Mean, Part 2

Canon’s Point and Shoot Cameras
In the point and shoot digital area, Canon have many more competitors
than in dSLRs. Many of these are highly effective companies producing
great products.

The latest releases from Canon build on an already strong range. The
Elph (IXUS) models have always been a favorite and the new releases
expand the offerings in this range for more pixels and also more
convenience with the dock of the lower-end model. In the new A-series
releases Canon has brought bigger camera features down to a smaller
package size, with the two A 600 series models, in particular, bringing
serious photographic control to a small form factor. Meanwhile the S80
brings 8Mpixel capability to an excellent package. All these releases
strengthen Canon’s position.

However Canon does not seem quite so dominant in this market. Whilst
they have been in the number one slot in the US market for some time,
many of their competitors have either equally strong product or strong
niche products. Companies like Pentax, Olympus and Casio, to pick just
three, offer great products that are keeping Canon on their toes.

Mobile or cell phones with cameras are fast dominating the bottom of
the digital point and shoot market. With 2Mpixel now readily available
and up to 5Mpixel on the way or already available in some markets, we
can expect a lot of the lower-end camera action to head the phone way.
Afterall, once they have autofocus, optical zoom and high enough
resolution, why carry two things for general purposes, a camera and a
phone? My new cell phone is the Sony Ericsson K750i and a full review
on this will be going up soon here. Sure it is only 2Mpixel and has no
optical zoom. But it is awefully impressive for many purposes and it
does at least focus properly.

Because people do not have a big investment in accessories and lenses
in this market segment, customers tend to be more willing to jump
brands on an upgrade, and the upgrade market is occupying a bigger
slice of digital camera sales each year as people outgrow their first,
or sometimes second, digital camera. Canon has great product and has
all the right ingredients to maintain and indeed grow their market
share in this segment. It just might start to shrink in the future as
camera phones bite.