LONDON — Optical components groups 3S Photonics ( Nozay, France) and Avanex Corp. (Fremont, Calif.) have resolved their contractual disputes.

3S is a former subsidiary of Avanex, and last December, the U.S group filed an arbitration complaint alleging breaches by 3S of its obligations, including prematurely terminating an exclusive distribution agreement.

Avanex said 3S owed it money after the deal was ended early. Once Avanex filed its claim against 3S in New York, 3S started legal proceedings of its own in the French commercial court of Evry and said it wanted damages of Euros 21 million (about $33 million.

The companies gave no details of payments in the settlement, but said both sides released all their claims and neither company admitted any liability. They said "the companies have agreed to a settlement on payables, receivables, and a release by both parties of all claims asserted against each other."

3S was founded in 1994 as Alcatel Optronics S.A. (a subsidiary of the Alcatel group) but was acquired in 2003 by Avanex (becoming Avanex France S.A.) before being bought in April 2007 by Alexandre Krivine and Didier Sauvage and renamed 3S Photonics.

"We plan new business opportunities and are looking forward to starting a new collaboration with Avanex," said 3S' chairman and CEO Krivine.

Avanex's interim CEO Dr Giovanni Barbarossa added: "We look forward to working with 3S Photonics again in the future."

Avanex fired its CEO, Jo Major, earlier this month, saying he and the board could not ''work together effectively".

Barbarossa is currently also Avenex's Chief Technology Officer.

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