Axsys Technologies ( AXYS), which makes optical system components, has been rated a buy since August 2005. Third-quarter revenue climbed 34% over a year ago to $45.2 million and profit increased 54% to $4.1 million, or 37 cents a share. The company continued to see strong demand for surveillance cameras, lenses and stabilized gimbal systems. Cineflex Camera Systems, purchased in April, generated $6.5 million in revenue during the quarter. While the need for advanced technology to secure borders is growing, only a fraction of more than 150,000 miles of international borders is equipped with the latest surveillance technology. Axsys' consistent focus on the core business, combined with increasing global border security concerns, should benefit the company going forward. However, Axsys' success largely depends on its ability to anticipate and respond rapidly to changing technological developments in the industry. A reduction or delay in the purchase of precision optical solutions by the U.S. government could have an impact on financial performance. Neogen ( NEOG), which makes test kits for food and animal safety, has been rated a buy since September 2005. The company recently reported that first-quarter revenue increased 13% over a year ago to $22.9 million, while EPS improved by 19.3%. Neogen has demonstrated a pattern of EPS growth over the past two years, and this trend is expected to continue. Net income increased by 25.1% to $3.01 million in the fiscal first quarter compared with the same period last year. The company has no debt to speak of, and it maintains a quick ratio of 2.64, which clearly demonstrates the ability to cover short-term cash needs. Investors have apparently begun to recognize these positive factors, which has helped drive up the company's shares by a sharp 100.14% over the past year. Although almost any stock can fall in a broad market decline, Neogen should continue to move higher even though it has already enjoyed a very nice gain in the past year. And though no company is perfect, currently TheStreet.com Ratings does not see any significant weaknesses that are likely to detract from the generally positive outlook.