ONE of the region's technology companies lost a quarter of its market value yesterday after issuing a profits warning.

Bede, which manufactures x-ray tools, employs about 100 at its headquarters in Durham and another 50 worldwide. It said it was looking at its cost base following slower-than-expected trading, although it gave no details of what action it might take.

It said it had ended the first half of its financial year with fewer orders than expected.

It gave no reason for the predicted shortfall in annual sales and pre-tax profits, but said: "While disappointing, this is not inconsistent with indications from sector analysts, predicting a downturn in second-quarter equipment orders."

The company had been hoping to be in profit this year, and as recently as May unveiled plans to double turnover and predicted annual profits would reach £500,000.

It reported losses of £2m last year, despite seeing an 80 per cent increase in sales.

This year, it predicted the market would quadruple in the next three years.

More information will be provided by the company when it announces its first-half results at the end of this month. Bede designs and makes specialist x-ray instruments and related software used by manufacturers to monitor production in the rapidly-growing compound and silicon semiconductor markets.

It hoped the market would grow because manufacturers are increasingly using its products, which make semiconductor manufacturing more accurate and efficient.

The group was founded in 1978 by Professor Brian Tanner and three colleagues from the University of Durham, to supply custom-made scientific instruments to universities.

It now consists of Bede Scientific Instruments in Durham, Bede Scientific Incorporated, in Denver, US, Bede Asia, in Shanghai, and Reflex, in the Czech capital Prague.

The group also said its non-executive chairman Stuart McIntosh planned to devote more time to Bede after retiring from an executive role with his previous employer.

This would allow Bede's chief executive and chief operating officer to focus more on sales, business development and marketing.

Shares closed down 8p at 26p or 24 per cent.