Rochester-based Kodak said that instead it would now focus on the design and sales of its digital cameras.
Kodak's second quarter revenues fell 9% to $3.36bn.
Digital woes
"They [Kodak] are finding that it is very hard to find profitability in digital, so they are having to be more selective of the market opportunities that they pursue," said analyst Shannon Cross of Cross Research.
Kodak is continuing to struggle against the collapse in sales of traditional photographic film, which used to be its main business.
It is currently carrying out a cost-cutting programme that will see up to 27,000 job losses.
It May of last year it announced that its former chief executive Dan Carp was standing down to be replaced by his number two Antonio Perez.
Analysts said Mr Carp paid the price for failing to successfully adapt to the digital future.
