ANDOR TECHNOLOGIES, the Belfast maker of high-end digital cameras, has reported a 22 per cent jump in pre-tax profits to £803,000 (€1 million) for the first half of its financial year.
Interim results for the six months to the end of March last show that turnover grew 10 per cent year-on-year to £11.5 million, while earnings per share were up 9 per cent to 2.57p.
Operating margin was up to 7.1 per cent from 6.8 per cent. Cash generated from operating activities was £1.04 million compared to an outflow of £49,000 a year ago.
Sales were particularly strong in the Asia-Pacific region, where revenues were up 34 per cent.
Although US sales grew only 3 per cent, Andor has adopted a new strategy in the US under chief executive Conor Walsh, who was appointed last June.
Due to cuts in US federal funding for research projects, one of the main areas in which Andor's cameras are used, it has begun to sell to equipment manufacturers who integrate cameras into their instruments.
Sales to the so-called OEM category in the US grew by 23 per cent.
Worldwide sales to equipment manufacturers grew by 6 per cent to £3.4 million.
"The change in US administration will mean a bit of hiatus for research spending but it couldn't be much worse than it has been in the last few years," commented Mr Walsh.
"Ultimately it will be down to how they decide to balance the books."
Andor also increased its investment in research and development to 11 per cent of revenue or £1.29 million compared to £840,000 (8 per cent of revenue) in the first half of 2007.
Mr Walsh said the increase in spend was to accelerate organic growth and was in addition to significant capital investments the company is making.
Japanese camera maker Nikon has also signed up to distribute Andor's cameras, which typically retail for £100,000 and above.
"The cameras will be branded as Andor which shows they recognise the value of our brand," said Mr Walsh.
Andor currently employs 190 staff, 120 of whom are located in Belfast where the company was spun out of Queen's University in 1989.
