Research, Development Costs Take Bite at Semco

Citing higher research and development outlays, Semco Instruments reported 7% lower earnings of $421,000, or 10 cents a share, in 1986. Earnings a year ago were $451,000, or 11 cents.

Sales fell 11% in 1986, to $3.4 million.

Semco attributed the lower earnings to research and development spending of $724,000 during 1986, which was 45% higher than in 1985. Those increased outlays were spent developing a new aircraft-engine device that the company said should be useful in engine maintenance.

Based in North Hollywood, Semco makes sensing devices for aircraft, including one that monitors engine heat.