Jan 10, 2003 : Lucent Pays $48 Million to Solectron

📅 January 10, 2003 - Electronics manufacturer Solectron Corp. (solectron.com) said in its quarterly report, filed Thursday, that it has received a payment of about $48 million from Lucent Technologies Inc. as a result of a cancelled supply agreement between the companies.

In October of 2002, Solectron agreed to undo the three-year, $2 billion contract it had to supply optical networking equipment to Lucent. Under the agreement, Lucent was to repurchase equipment and unused inventory from its optical product lines acquired by Solectron in May for about $99 million.
Solectron says it saw no gain or loss as a result of the transaction and that the company will continue to produce some of Lucent's optical networking products through to March of 2003.
According to Solectron, the decision by the companies to unwind the agreement came as a result of changes to the marketplace and a reduction in demand.