STOCK PICKS: Top 5 Small-Caps for Aug. 29

Integral Systems(ISYS Quote) builds satellite ground systems and equipment for command and control, integration and testing, data processing and simulation. Founded in 1982, the company supports satellite missions for communications, science, meteorological and earth resource applications.

Integral Systems has been rated a buy since March 2005. For the third quarter of fiscal 2008, revenue improved 16.5% year over year, climbing to $41.8 million. Income from operations was reported as $7.1 million for the third quarter, compared to $5.3 million in the same quarter last year. The company also reported net income of $4.7 million, or 55 cents per diluted share, an increase from $3.8 million, or 34 cents per diluted share, reported in the third quarter of fiscal 2007. During the third quarter, both gross profit and operating income grew significantly in the Space Communications Systems and Government Ground Systems segments. The company has experienced a 34.2% increase in its year-to-date revenue when compared with the same period last year.

Management feels that the third quarter results reflect a solid financial performance and growth in the above-mentioned segments. Significant momentum and financial resources are expected to allow the company to focus on strategic growth initiatives going into the fourth quarter and the start of the next fiscal year. The company expects that such initiatives will continue to drive value for its shareholders. Earnings projections for fiscal 2008 were raised to approximately $2.15 per share.

U.S. Physical Therapy(USPH Quote) operates approximately 350 clinics for outpatient physical and occupational therapy. These clinics provide preventive and post-operative care for a variety of orthopedic-related disorders and sports-related injuries, as well as treatment for neurologically-related injuries and rehabilitation of injured workers. The company was founded in 1990 and currently operates in 42 states.