EMS provider wins $1.5 million in court case

IEC Electronics Corp. has won a $1.5 million judgment against a former customer over non-payment for services by a New York State Supreme Court.

IEC, a Newark, N.Y., EMS provider, was awarded $1,580,077.13 today in a lawsuit filed against long-time customer Acterna Corp., a Burlington, Mass., test management solutions maker.

IEC initially sought $7 million for breach of contract and unpaid invoices from Acterna, which makes high technology products for access and cable networks and optical transport companies.

IEC initiated legal action against Acterna last November. The $1.5 million judgment was for unpaid invoices for subassemblies and circuit cards, said Thomas Lovelock, IEC's president and chief executive.

The current recession has strained relationships with EMS providers and their customers who have cancelled and pushed back orders in response to weak end market demand.

�The problem started last summer,� Lovelock said. �They said business was great and they wanted volume price breaks. Then, in mid summer, the market at Acterna went south. We were stuck with excess inventory.�

Acterna executives could not be reached for comment.