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Cray clear to sell NEC supercomputers

The U.S. Commerce Department has lifted an order that imposed a high tax on some Japanese supercomputers being sold in the United States, clearing the way for supercomputer specialist Cray to begin selling systems from its one-time rival NEC. The order was triggered by legal action by Cray accusing Japanese supercomputer companies of trying to gain market share by selling products below market value, a practice called "dumping." Cray agreed to become NEC's sole U.S. distributor of the product as part of a settlement of the dispute. As part of the deal, NEC is investing $25 million in Cray in exchange for 3.125 million shares at $8 apiece. The transaction is expected to close by May 11, Cray said.

The U.S. Commerce Department has lifted an order that imposed a high tax on some Japanese supercomputers being sold in the United States, clearing the way for supercomputer specialist Cray to begin selling systems from its one-time rival NEC. The order was triggered by legal action by Cray accusing Japanese supercomputer companies of trying to gain market share by selling products below market value, a practice called "dumping."

Cray agreed to become NEC's sole U.S. distributor of the product as part of a settlement of the dispute. As part of the deal, NEC is investing $25 million in Cray in exchange for 3.125 million shares at $8 apiece. The transaction is expected to close by May 11, Cray said.