X-RAY instrument maker Bede yesterday revealed first-quarter losses that had narrowed slightly as it reported stronger sales and new orders.

The Durham company announced pre-tax losses of £1.14m for the three months to March 31, compared to £1.57m a year earlier, with revenue climbing £330,000 to £1.38m.

The plc, which supplies x-ray metrology tools to the semiconductor industry, also reported a rise in the combined level of sales and closing order book to £3.9m, up from £2.2m in the first quarter of last year.

The group started the second quarter with an opening order book of £2.5m, more than double that of last year, and said it expected to win new orders during the year.

Bede also announced that it had completed a restructuring programme that will result in annual savings of £1.5m.

Group chairman Stuart McIntosh said: "The group continued its progress in taking orders for its tools in the market place and, in addition to the five new customers won during 2006, expects orders from a similar number of new customers during 2007.

"As ever, the company is grateful for ongoing support of customers, shareholders and employees, and will continue to report progress in future announcements."

Bede, which has its headquarters in Belmont Business Park, near Durham City, was founded in 1978 by Professor Brian Tanner and three colleagues from Durham University. The company has had a difficult time in recent years. In 2003, it suffered as the result of a downturn in the global semiconductor market, and reported annual losses of £4m.

New markets in the Far East - in China, Taiwan and Japan - helped turn its fortunes around and, by 2004, its annual losses had halved to £2m.

Bede then started 2005 with a pledge to double turnover and finish the year about £500,000 in the black.

But that July, the company lost a quarter of its stock market value after issuing a profits warning and said it was looking at its cost base following slower-than-expected trading. Two weeks later, the firm shed a tenth of its workforce of 100.

Losses continued to widen, and in January last year, chief executive Dr Neil Loxley, who had been part of Bede's senior management for 18 years, resigned.

Bede reported full-year pre-tax losses of £3.6m for last year and revenues of £6m.

In less than two years, Bede's share price has fallen from about 342p to last night's close of 5¾p.