SANTA CLARA, Calif.--Virata Corp. today announced settlement of its lawsuit with broadband chip customer Westell Technologies Inc., which earlier this week said it had also reached separate agreements to drop suits filed by Alcatel Microelectronics N.V and the PAC TEL division of La France Corp.
Earlier this year, Virata filed suit against Westell in a California state court, alleging that the company had breached an agreement to purchase semiconductors for broadband access systems based on digital subscriber line (DSL) technology. Under the settlement, Westell has agreed to continue purchasing semiconductors from Virata.
Terms of the settlement agreement are being kept confidential, said Virata, which is now being acquired by GlobeSpan Inc. of Red Bank, N.J. (see Oct.1 story).
At the end of last year, Virata announced a multi-level agreement with Westell, allowing the company to cancel 40% of its purchase contract for Helium network processors in return for rescheduling product shipments. Westell also promised to use Virata's next-generation chips in future DSL modems (see Dec. 21 story).
Westell now plans to take a one-time charge of $1 million in the current quarter to cover the settlements with Virata, Alcatel Microelectronics, and PAC TEC, said Nicholas Hindman, senior vice president and chief financial officer of the Aurora, Ill.-based company.