Oak Industries on Thursday reported improved income...

Oak Industries on Thursday reported improved income and revenue for the fourth quarter and year ended Dec. 31.

Oak reported $5 million in net income, including a $4.9-million gain on patent settlements, for the fourth quarter. Oak reported a $4.2-million net loss during the same quarter the previous year. Revenue rose by 7%, to $49.9 million, up from $46.5 million during the fourth quarter of 1987.

For the year, net income rose by 40% to $12.9 million, up from $8.2 million. The 1988 results included $9.7 million from patent settlements and gains on the sale of properties as well as $4.4 million in income from the reversal of several previously established loss reserves. Oak’s 1987 revenue included $18.2 million from the settlement of a patent case and $2.5 million from extraordinary gains.

Revenue rose by 8.6% to $197.8 million, up from $182.2 million during 1987, and all of Oak’s remaining divisions reported operating income during 1988.

Oak’s “continued improvement in 1988 reflects several steps we took during the year to strengthen our operations and financial condition,” according to E. L. McNeely, Oak chairman and chief executive.

During the past year, Oak sold its elaborate headquarters building and moved into a building leased by an Oak subsidiary. Oak also continued “ongoing cost-reduction measures and implementation of aggressive marketing strategies,” McNeely said.

Oak had $48 million in cash and unused secured credit available on Dec. 31, McNeely said. Stockholders’ equity rose by 17%, to $91.9 million, at the end of 1988, up from $78.8 million the previous year.