Andor Technology yesterday announced a 16 per cent increase in pre-tax earnings to £1.1 million (€1.62 million) for the first half of the year, despite currency weaknesses and stalled US research budgets.

The Belfast-based group's interim results for the six months to the end of March last showed it had revenues of £10.5 million, compared to £9.2 million in the first half of 2006. The Aim-listed company, which was spun out of Queen's University Belfast in 1989, sells high-end digital cameras to research and industrial customers.

Executive chairman Dr Bryan Keating said the company hoped to be able to announce a significant acquisition by the end of the year. Andor has previously completed two technology-focused acquisitions but Dr Keating said it was now seeking to buy a more established company that could boost its mid-market offerings.

Dr Keating stood aside as chief executive last year in order to focus on acquisition opportunities. He said he was "optimistic" that a new chief executive would be appointed shortly.

In the first six months of its financial year, Andor was hit badly by the weakened dollar and the temporary hold put on research budgets by the new Democrat-controlled Congress. This resulted in a net drop in US sales of 11 per cent. Conor Walsh, finance director with Andor, said this was "the first time we have seen a decrease in sales in a region" but he was confident US federal budgets would continue to be approved over the course of the year.

Andor executives said they expected second half turnover to be in the range of £12 million to £12.5 million, with profits of £900,000 to £1.1 million.