Lucent Pays Solectron To End DealLucent Pays Solectron To End Deal

Contract-electronics manufacturer Solectron Corp. received a payment of about $48 million from Lucent Technologies Inc. over a canceled supply agreement, according to a regulatory filing.

In late October 2002, Solectron agreed to unwind the $2 billion, three-year contract to supply optical-networking equipment to Lucent by the end of November, Solectron said in a quarterly report filed with the Securities and Exchange Commission late Thursday.

According to their agreement, Lucent was to repurchase the equipment and unused inventory from its optical product lines that Solectron acquired in May for about $99 million.

No gain or loss was realized over the transaction, and Solectron will continue to produce and support a portion of Lucent's optical-networking products through March 2003.

Milpitas, Calif.-based Solectron said the companies decided to unwind the agreement as a result of significant changes in the marketplace and decreased demand.

Also, in Solectron's quarterly report, the company said it filed a motion challenging a wrongful termination complaint by a former employee.

Ronald Sorisho alleged in the lawsuit, filed Sept. 19 in California, that he was wrongfully dismissed in "retaliation for his alleged efforts to ensure that the company timely recognized a charge for excess, obsolete and slow moving inventory in the Technology Solutions business unit."

In response to Solectron's motion challenging the claim, Sorisho filed an amended complaint in which he dropped one of his two original wrongful termination claims but added a new claim for purported defamation based on statements made by Solectron in a news article regarding the allegations.

The plaintiff still seeks compensatory damages of "not less than $2.5 million," as well as punitive damages.

Solectron said it believes the claims are without merit and that it intends to vigorously defend itself.