Eastman Kodak announced its second quarter earnings Friday. Sales were down 27 percent from the same quarter last year, but showed signs of improvement.

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"Kodak is still not making money, they're still losing money, but their losing less money, and that puts them on a good track for emerging from bankruptcy next year,” said George Conboy of Brighton Securities.

The company showed signs of improvement for its Commercial and Consumer segments by a combined total of $82 million, better than the same quarter last year.

"Not all the businesses are equal but all the businesses that remain have shown improvement."

The company says the decline of $1.1 billion in sales largely reflects the exit of digital cameras and reduced sales of traditional products. Right now, the company's focus is only on the businesses vital to Kodak's future.

Next Wednesday, Kodak will put more than 1,000 patents on the auction block.

"Among the bidders are on one side a group that includes Google and on the other a group that includes Apple and Microsoft,” Conboy said. "Bankruptcy makes for strange bedfellows."

Kodak is expecting to earn between one and three billion dollars for patents that cover technology used in digital cameras, smartphones and tablet computers; but with businesses of this magnitude coming to the table, Kodak may see a higher than expected price.

"I can't imagine Apple and Microsoft working together on anything. The only question is, how much will they pay."

The patent sale will be completed by August 13th.

On Monday, Kodak says they are heading to Manhattan Bankruptcy Court to seek approval of a bonus plan for nearly 200 employees. Conboy says the bonuses are based on how much the company pays back to its creditors. He says there is a clause that requires senior management to stay through the complete bankruptcy period before collecting their bonuses.