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Thursday, Mar 28, 2024
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Microsemi Prevails in Lawsuit On Old Business Line

Aliso Viejo-based chipmaker Microsemi Corp. was awarded $5.3 million in damages from another local technology company in a breach-of-contract lawsuit filed four years ago.

It took six weeks for 12 jurors to render the unanimous verdict against Irvine-based Cosemi Technologies Inc., which specializes in optical components and connectivity.

“Microsemi prefers to resolve any disputes in a business-like fashion but if a fair compromise cannot be reached, Microsemi will go the distance to protect its rights and interests of its shareholders,” said Mark Yocca of Irvine-based The Yocca Law Firm LLP, who represented the chipmaker.

The case, heard in Superior Court of Orange County in Santa Ana, goes back to 2006, when Microsemi exited its business in photo diodes, which are basically chips that emit electric signals used in telecom networking gear.

That year, Microsemi entered into a licensing agreement with Cosemi, which agreed to pay royalties on licensed products sold in the future.

Three years later, Microsemi alleged Cosemi hadn’t accurately reported or paid the royalty fees. Microsemi alleged that even after it sent a termination notice to Cosemi, the company continued to sell related products using the technology.

The case has been in litigation since 2011 and included counterclaims by Cosemi that Microsemi breached contract stipulations. Jurors rejected those claims in the March 3 verdict.

Cosemi, which can appeal the decision, didn’t respond to a request for comment.

The company made the Business Journal’s list of the fastest-growing private companies in 2009.

Quantum Responds to Demand

Growing demand to supply natural-gas fuel tanks that fueled record quarterly sales in the segment has prompted Quantum Fuel Systems Technologies Worldwide Inc. to expand manufacturing capacity.

The Lake Forest-based company, which has long struggled to maintain profitability, plans to boost production of its fuel tanks to 20,000 units this year.

Quantum targeted production at about 12,000 tanks last year.

The expansion comes after the company added some 30,000 square feet of space last year. Chief Executive Brian Olson told the Business Journal in an earlier interview that he envisioned an additional 30,000-square-foot expansion this year.

The company’s sales in the fourth quarter topped $12.7 million, up 126.7% from a year earlier and beating Wall Street expectations of $10.7 million. Revenue related to compressed natural fuel tanks was about $8 million, up 208%.

Jabara Keynote

The second annual OC Mobile conference hosted by Octane and M2Catalyst LLC will be March 27 at the Center Club in Costa Mesa. Gary Jabara, founder and chief executive of Newport Beach-based Mobilitie LLC, the largest U.S. supplier of distributed antenna systems for stadiums and other sporting venues, will be the keynote speaker.

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