Telecommunications equipment maker Redback Networks said that Arrow Electronics is seeking $54 million in damages related to "inventory procured and manufactured on behalf" of Redback, according to a filing with the Securities and Exchange Commission. Arrow Electronics is a contract manufacturer that makes a variety of equipment for electronics companies. The filing did not specify the kind of equipment involved, but Redback makes optical gear for telecommunications carriers that run telecommunications networks in cities. Redback said that it "intends to vigorously defend itself in this matter."
Redback reported Wednesday a third-quarter loss of 28 cents a share, excluding charges, on revenue of $37 million. That compares with earnings of 2 cents a share and revenue of $80.6 million in the year-ago quarter. Redback's pro forma net loss for the quarter was $40.9 million, but the company posted a loss of $3.2 billion including charges.