ClearSpeed Technology, the parallel processor developer, has reported revenues of £500,000 in the first six months of the year. This represents a four-fold increase on the same period a year ago.

The high end processor company, which has offices in Bristol and the US, said operating expenses had been reduced to £6.2m in the period. But said that it would carry out further restructuring to reduce its cost base but “allow retention of the core team to work with development partners”.

“We have developed a very strong product offering but, as with many new technologies, the challenge is to gain acceptance in the marketplace. Consequently, we have continued to reduce costs and focus on the careful management of our resources,” said Richard Farleigh, ClearSpeed chairman.

The company’s strategy is to do more development work with partner companies to share the costs of processor R&D.

R&D costs in the first half amounted to £3.2m. “These will be specifically controlled and only incurred going forward to fulfil customer orders,” said the company.

ClearSpeed launched its new processor, the CSX700 at the International SuperComputing Conference in Dresden in June. 

According to ClearSpeed, the CSX700 was approved by HP to provide acceleration to its blade servers opening up a potential market for the product.

The CSX700 has also been selected by BAE Systems for future US government satellite processing needs, highlighting a widening of interest in the Group's technology for defence, aerospace and related markets. 

A year ago ClearSpeed took the important step of licensing its processor array accelerator technology to BAE Systems in a deal which extended its business from hardware vendor to IP licensor.

The company is also working with partners and distributors to expand international markets for its processors.

“There are early indications that this model is making progress in Asia Pacific, but long-standing engagements have yet to come to fruition, despite strong apparent interest. To date, the Group has not yet replicated this level of interest in the important US and European markets as the overall slow growth of the HPC acceleration market has made revenue growth both more difficult and slower than expected,” said the company.