Top Five Small-Cap Stocks

We have rated Pericom a buy since February 2007. The company reported that its earnings for the third quarter of fiscal 2008 surged 58.4% year over year, bolstered by strong demand for its products. Total revenue for the quarter climbed 36.4% to $41.18 million, aided by strong demand for products used in digital video high-performance PCs and servers, compared to $30.18 million in the prior-year quarter. Net income for the quarter increased to $4.14 million, or 16 cents per share, from $2.61 million, or 10 cents per share, in the third quarter of 2007.

The company expanded its Digital Video solutions by launching two new switches that allow next generation computing platforms using dual-function graphics ports to be switched between either of the high speed protocols. Pericom also launched three new signal conditioning products and expanded its Timing portfolio.

Looking ahead, management expects revenue for the fourth quarter of fiscal 2008 to be in the range of $42.00 million to $43.20 million, with gross margin expected to be in the range of 36.8% to 37.8%. In addition, the company expects its operating expenses to be between $10.80 million and $11.00 million. However, weak demand for semiconductors, higher stock option expenses, and the highly competitive market could restrict Pericom's future growth.

CAM Commerce CADA designs, markets, installs and services a variety of software, hardware and other technical systems for retailers. The company offers retailing systems consisting of software, hardware, installation, training, technical support services and Web hosting services to both traditional and Web retailers. CAM Commerce also offers comprehensive payment processing solutions and services that integrate with its retailing systems and those of other suppliers.