News

15 July 2008

 

3S and Avanex settle contractual disputes

Telecom laser chip and module maker 3S Photonics of Nozay, France and optical communications component and module maker Avanex Corp of Fremont, CA, USA say that they have resolved their contractual disputes.

Last December, Avanex filed an arbitration complaint in New York alleging breaches by 3S of its obligations, including prematurely terminating an exclusive distribution agreement. 3S was founded in 1994 as Alcatel Optronics S.A. (a subsidiary of the Alcatel group) but was acquired in 2003 by Avanex (becoming Avanex France S.A.) before being bought in April 2007 by Alexandre Krivine and Didier Sauvage and renamed 3S Photonics. Avanex said in December that it expected the distribution agreement's termination to reduce its revenue for fiscal second-quarter 2008 (to end-December 2007) from early November's guidance of $56-58m to $51-53m (the final figure reported at the end of January was $52m), as well as reducing fiscal third-quarter revenue to flat to slightly lower than fiscal Q2 (the final figure reported at the beginning of May was $49.6m).

While neither side admits liability, the two parties have agreed to a settlement on payables, receivables, and a release by both parties of all claims asserted against each other, including the dismissal of legal actions taken in New York, California, and the Commercial Court of Evry, France. With this resolution, there will be no further litigation between 3S and Avanex.

“We plan new business opportunities and are looking forward to starting a new collaboration with Avanex,” says 3S’ chairman and CEO Alexandre Krivine. “We look forward to working with 3S Photonics again in the future,” adds Avanex’s interim CEO Dr Giovanni Barbarossa.

See related items:

3S reports positive EBITDA as revenue triples year-on-year

Avanex files complaint against 3S and cuts guidance

3S enters terrestrial pump laser module market

3S Photonics launched on completion of Avanex France sale

Avanex France to become 3S Photonics

Search: 3S Photonics GaAs InP

Visit: www.3Sphotonics.com

Visit: www.avanex.com