Oak Reports $3-Million Net Loss in 2nd Quarter

Oak Industries reported a $3.2-million operating loss and a $3.1-million net loss for the second quarter ended June 30. The Rancho Bernardo-based electronics and communications parts manufacturer reported a $9.8-million operating loss during the second quarter of 1986.

Oak generated a $76-million net profit during the second quarter of 1986, due mainly to a non-recurring gain from the sale of its components division to Allied-Signal.

Oak posted a $5-million operating loss and a $2.8-million net loss for the first six months of 1986. It reported a $22-million operating loss and a $66-million net profit for the comparable period last year.

The $20.1 million in cash Oak received from M/A-Com Inc. and General Instrument Corp. to settle patent litigation will be included in Oak’s third quarter income statement. In return for the payment, Oak granted the two companies non-exclusive license agreements covering patents held by Oak’s communications subsidiary.

Sales from continuing operations rose by 28% to $46.7 million for the second quarter and by 20% to $89.5 million for the first half of 1987. Oak attributed the revenue increase to improved sales of appliance controls and recent acquisitions.