At the tender age of 23, Edwin Land decided to drop out of Harvard and strike out on his own. For any other person, such a move might have seemed rash; but Land possessed something extraordinary: the first synthetic light-polarizing material. Having developed it himself in the late 1920s, the young man decided not to waste time establishing a business. As it turns out, he made the right decision. Land's company, Polaroid, developed the material through the 1930s. Polaroid prospered during World War II, when the material found a number of military applications. Company sales jumped to a staggering $1 million in 1941, and to over $15 million by the end of 1945.

Roller-coaster sales

After a bout of sluggish sales, Polaroid seemed destined to fade into obscurity. Yet the company has consistently rebounded during times of turmoil. The $14 Swinger camera sold by the millions in the 1960s; meanwhile, the Pronto camera set annual sales records during the 1970s. In 1991 Polaroid won a long-fought $873 million legal battle against Eastman Kodak for patent infringement. Polaroid had first accused Kodak of stealing its concepts in 1976.

Instant success

Polaroid is still best known for instant photography. The company supplies nearly 100% of that market. Low-cost cameras and film, on the other hand, comprise only one-third of the company's current sales. A major portion of Polaroid's revenue comes from industrial and business products related to instant imaging. The company is also aggressively pursuing medical diagnostic technology, holography, and other high-tech imaging concepts. Recently, the company introduced a camera for high-definition television and announced that it would be developing a device that can print color images straight off the set.

Not always picture perfect

Polaroid has not been without its tough times - recent years possibly being the toughest. In 1995, new CEO Gary DiCamillo, who came straight from Black & Decker, cut the company's workforce by 20% as part of a restructuring effort. Charges from that decision totaled over $140 million. Having sold its hardware unit to Sterling Diagnostic Imaging in 1996, Polaroid lost another $110 million in restructuring debts. In 1997, another bleak year, Polaroid dismissed 15% of its employees. The following year, the company handed over its chemical-manufacturing operations to International Specialty Products.

Blurry sense of direction

1998 second quarter net earnings were bleak at best for the trigger-happy company. Polaroid's total net earnings plummeted 65 percent. Meanwhile, the company disclosed that it would reduce its operating profits by $35 million. In the hopes of avoiding a major debacle, Polaroid reshuffled key staff. It ousted one of corporate America's highest-ranking women, Carole J. Uhrich, from her position as executive vice president. Replacing her was Serafino Posa, who marketed such wonder products as Miracle Whip prior to coming to Polaroid in 1996. In 1999 the company turned its money-losing graphics business over to Andlinger & Co., forming a new venture called PGI Graphics Imaging LLC.

Thanks, I-zone

In 1999 the company put out its boldest product offering in years. The toylike I-zone, an instant pocket camera offered in a wide range of bright colors, quickly became the best-selling camera in the country. Designed for 12- to 17-year olds, the thumbnail-sized grainy and dark images the camera produces became an instant hit among teenage girls who used the I-zone at slumber parties. The I-zone helped Polaroid post its first yearly profit in five years, and spawned its own web site (izone.polaroid.com) where teenagers could access and share their photos. The I-zone and its siblings, the larger Popshot and Joycam, have breathed new life into Polaroid's instant camera future. In 1999 the company sold 9.7 million instant cameras, topping its 1978 record of 9.4 million.

Not just instant cameras

Surprising many analysts, in 1999 Polaroid emerged as a leader in the digital camera field as well. It was the only company who managed to turn a profit on its digital camera sales. Moreover, as people start using other devices like cell phones and Palm Pilots to take photos, Polaroid hopes to capitalize on their need to print them out. The expected rise in demand for coated paper, a Polaroid specialty, should help fuel years of growth for the company. (Polaroid has always sold cameras almost at cost, and made its money from chemical-and-paper film that develops itself in a minute or two.) But doubts remain about whether the digital camera wave will truly be beneficial to the company since Polaroid customers who switch to digital photography are lost in the market for the company's self-developing film.

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