A LEADING North-East technology company is confident it can ride out the current market slump that has wiped billions off the value of tech stocks worldwide.

Bede, based in Durham, is a leading manufacturer of x-ray instruments widely used in the semi-conductor and drugs industry.

The company has been facing difficult times as a result of over-capacity in the semi-conductor market which has driven prices down remorselessly.

But Bede bosses remained bullish last night despite the problems.

Results for the first six months of this year show that the firm recorded a turnover of £3.1m.

The figures reflected the continued depression in the semi-conductor market across the world which saw the same revenue achieved during the first six months of last year.

But while other manufacturers dependent on the demand for silicon chips feel the pinch, Bede has been busy developing new products and selling its specialist x-ray equipment to other markets such as pharmaceuticals and agriculture companies.

Perhaps Bede's biggest coup has been breaking into the lucrative Japanese market.

The company, based on the Belmont Industrial Park, recently secured a distribution agreement with Tokyo Electron Ltd in Japan, which is expected to contribute to future revenue growth in 2003.

TEL will market, sell, install and maintain the entire range of Bede products for semi-conductor applications and for other markets such as life sciences and pharmaceuticals from next month.

Tim Anderson, spokesman for the group, said: "It's a very tough market and so the profit margin has come under some pressure over the last six months.

"But things are looking much better. We've got orders outside of the electro-components market altogether. That's very encouraging because they've launched a number of new products outside the market."

He said all the trends were pointing to an eventual revival of the semi-conductor market.

He said: "Everybody expects the semi-conductor market to revive. It goes through very big cycles and it's at the bottom of a cycle at the moment."

The company's positive outlook was bolstered earlier this month when it received the Queen's Award for Enterprise.

Bede had previously won the Queen's Award for Export in 1991 and the Queen's Award for Technological Achievement in 1991 and 1996.