$9.6-Million Quarter Loss Posted by Oak Industries

San Diego-based Oak Industries reported a net loss of $11.2 million for the third quarter ended Sept. 30, compared to a loss of $9.6 million in the third quarter last year. Revenues from continuing operations dropped 19% to $62.7 million.

For the nine months, Oak reported a net loss of $24.2 million, compared to a loss of $29.5 million last year. Sales dropped 17% to $212.6 million.

The third-quarter loss in 1984 included a loss from discontinued operations of nearly $4 million, while the nine-month loss in 1984 included a loss from discontinued operations of $16.2 million. No similar losses were reported this year.

The company last week also announced that its Oak Communications subsidiary has signed a general sales and purchase agreement with Toshiba Corp. to make Oak’s Sigma cable-TV decoding equipment. Oak will continue to make Sigma decoders at its Taiwan plant and Toshiba will become a second-source supplier of the equipment. The contract was required because of expected heavy demand for Oak’s Sigma product line of cable-TV decoders, according to Oak Communications President John P. Donohue.

Meanwhile, Oak will pay interest on its new 13.5% senior convertible notes in common stock so that it can conserve its cash--a practice the company has used throughout the year.

Last month, Oak announced that Allied Signal would purchase Oak’s materials group for $160 million in cash, and would buy 10 million shares of newly issued common stock as well as warrants to purchase about 4.2 million shares of common stock for $15 million in cash.

Oak intends to use the proceeds and up to 11 million shares of stock in an exchange offer to retire its $240 million of publicly held debt.