Growing Bingley firm Eldon Technology has won a £1 million deal with a division of global firm Philips which is set to help it expand even further.

The company, which has its headquarters in Bingley and a manufacturing unit in Keighley, has won the contract from Dutch firm Philips Semiconductors to help develop the firm's integrated digital television.

It is the biggest contract Eldon Technology has ever been awarded and resources and marketing director Stephen Davy hopes will lead to more work in the future.

Eldon Technology's engineers and designers have come up with equipment which will help to put Philips at the cutting edge of digital television technology.

It includes software developed by engineers at Eldon which will be used by Philips and sold separately - providing spin-off sales for the company.

The equipment will also allow television producers to add software produced by Eldon to its analogue sets to get them into the digital market quicker.

The firm currently employs 85 people on its two sites and by the end of next year expects that figure to rise to 100. A search has started for new premises in the Aire Valley to prepare for further expansion as the company expects to employ 200 people in total.

Eldon's commercial director Paul Daly said: "Eldon has an established reputation for the design of Integrated Digital Televisions, with no fewer than three manufacturers using us to assist in the development of products, incorporating our Elgist brand into TVs for the UK digital terrestrial market.

"This experience, coupled with a long standing relationship between Eldon and Philips Semiconductors on other digital projects, will ensure this reference design meets manufacturers' actual needs.

Joost Verhoeks, Philips Semiconductors' System marketing manager in mainstream digital TV, said: "We see this partnership as a vital step in enabling manufacturers of analogue receivers to enter the digital arena, without having to carry the entire overheads involved in the substantial investment in software resources required to produce a competitive product."

Eldon Technology is a subsidiary of EchoStar Communications Corporation and is the leading electronics design consultancy in Europe. Philips Semiconductors designs and manufactures semiconductors and silicon systems platforms.