In addition to the bad deal, Kodak's health imaging unit had internal problems with shipments and production, Yannas says, which perhaps hastened the departure of former division head J.

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The sweet deal led to other customers' demanding--and ultimately receiving--similar prices, slashing the health imaging unit's margin and causing Kodak to issue an earnings warning for the third quarter last year.

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"As mobile devices like smartphones and tablets get smaller and thinner, the pixel size of image sensors needs to shrink accordingly, " said Andrew Burt, vice president of the Analog and Imaging Business Unit, System LSI Group at TAEC.

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LightLab Imaging, a unit of Japan's Goodman, is testing a method using light.

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Some players like the DRS Technologies unit of Italian giant Finmeccanica are extremely skilled at thermal imaging, while others like the Electronic Solutions unit of BAE Systems Inc. have unsurpassed expertise in infrared countermeasures.

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And he has been placed in charge of Kodak's second-biggest revenue generating unit, Health Imaging, where the cards are stacked for his success.

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Acquisitions include French media conglomerate Vivendi Universal, which GE folded into its NBC Universal unit, along with diagnostic imaging company Amersham and natural gas systems supplier Vector Gray.

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