A REVISED business strategy is beginning to pay dividends for x-ray equipment maker Bede plc.

The Durham company saw a record quarterly orders amid continuing signs of a resurgence in the semiconductor sector.

The company has concentrated on developing high-end applications for its testing equipment that are enabling leading semiconductor manufacturers to make better use of microchips.

Bede has switched its focus from supplying machines for research and development to manufacturing tools that are attracting interest from leading producers in the industry.

That was reflected by its order book for the first quarter swelling to £2.7m, up from £1.2m on the same period last year.

The company's cost base remained at £1.3m. It had an order backlog at March 31 of £3.2m, compared with £0.8m the year before.

The company said its first quarter orders were dominated by the long lead-time (the time between order and delivery) required for BedeMetrix tools, leading to low sales of £0.4m - down from £0.8m in the first three months of last year - and a pre-tax loss for the period of £1.2m.

Bede said the total value of sales plus orders to June 25 was £5.4m, putting the company on track to achieve analysts' expectations of £8m revenue for the year.

Neil Loxley, chief executive, said: "It is a combination of factors. The market is coming back to strength. Also, the market is now more and more ready for what we are offering.

"We are working at the leading edge of what they need to measure. They have not had to use x-rays in the past, but this up-cycle, they are going to have to use our tools.

"We narrowed our focus and targets successfully and came out of the downturn with a range of technology for this moment.

"We are seeing people realise they have to invest in this technology and we are getting more and more confident about the way things are going. All the hard work is starting to pay off.

"As a result of the increasing strength in short-term order bookings and strong forward demand for our technology and products, the directors remain confident about the opportunities to deliver improved earnings growth."

Bede ended the first quarter with net cash of £1.7m.