NEW YORK (Reuters) -- Photography company Eastman Kodak Co. on Tuesday said its quarterly loss narrowed from a year earlier, when it took a $778 million tax-related charge, and revenue fell as traditional film sales declined 19 percent.

The world's top maker of photographic film, which is undergoing a lengthy and expensive transformation into a maker of digital cameras and printing products and services, posted a net loss of $37 million, or 13 cents a share, compared with $914 million, or $3.18, a year earlier.

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Excluding restructuring costs and other special items, the company reported a profit of 44 cents a share, exceeding the analysts' average expectation of 19 cents.

Analyst views ranged from 8 to 30 cents a share, according to Reuters Estimates.

Analysts have found it difficult to measure Kodak's overall health due to the constant restructuring during the past three years. While some units have grown and added workers, others are cutting operations and jobs.

Third-quarter revenue slipped to $3.2 billion from $3.55 billion, missing the analysts' view of $3.28 billion.

Digital earnings rose to $105 million from $7 million a year earlier.

Kodak, which cut its full-revenue outlook Aug. 1, said it is confident it can meet its 2006 digital earnings goals, but digital revenue growth will be somewhat below its 10 percent target as a result of its plan to focus on products that yield higher profits.

One year ago, Kodak posted a large noncash charge to write down of the value of deferred tax assets as a result of current and expected U.S. losses from its extensive restructuring launched in January 2004.

Since late 2003, Kodak has focused on digital devices, hoping to outpace the drop in demand for film, historically its main revenue source. At the same time, it is reducing costs by cutting up to 27,000 jobs and trimming manufacturing.

Kodak (Charts) shares closed lower Monday on the New York Stock Exchange, as did ADR shares of Japanese rivals Canon Inc. (Charts) and Fuji (Charts). Kodak's revenue warning had sent the stock down 14 percent, but the shares have more than recovered since then, rising about 24 percent.

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