II-VI ( IIVI) develops, manufactures and markets high technology materials and derivative products for precision use in industrial, medical, military, security and aerospace applications. Our rating for II-VI has been in place since October 2006. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and solid stock price performance. For the fourth quarter of fiscal 2008, the company reported revenue growth of 31.4% year over year. This growth helped boost earnings per share from 37 cents in the fourth quarter of fiscal 2007 to 50 cents in the most-recent quarter. II-VI has a low debt-to-equity ratio of 0.01, indicating very successful management of debt levels. Along with this, the company demonstrates the ability to cover its short-term cash needs, based on a quick ratio of 2.77. Powered by its strong earnings growth of 35.13% and other important driving factors, this stock has surged by 26.09% over the past year. We feel that the company's strengths outweigh the fact that it shows weak operating cash flow. Team ( TISI) provides specialized industrial services including on-stream leak repair, hot tapping, fugitive emissions control monitoring, field machining, technical bolting, field valve repair, field heat treating, and non-destructive testing/examination inspection services. These services are provided at 60 locations throughout the United States, as well as 14 international locations. We have rated Team a buy since January 2007, based on its revenue growth, largely solid financial position, and impressive record of earnings per share growth, among other strengths. For the fourth quarter of fiscal 2008, Team reported revenue growth of 49.6% year over year. This appears to have helped boost EPS, which rose 49.2% since the same quarter a year ago, rising from 32 cents to 47 cents. Team has demonstrated a pattern of positive EPS growth over the past two years, and we feel that this trend should continue. Net income also increased in the fourth quarter, rising 53.9% from $6.08 million to $9.36 million. In addition, the stock price has surged 35.30% over the past year, largely due to earnings growth of 49.20%. Management was pleased with what it said were record results in the fourth quarter. Because of these results and the company's growth, management remained positive about Team's outlook for fiscal 2009. Full-year revenue is expected to be in the range of $530.00 million to $545.00 million, with net income anticipated in the range of $1.45 to $1.60 per fully diluted share. We feel that the company's strengths outweigh the fact that it shows weak operating cash flow. Our quantitative rating is based on a variety of historical fundamental and pricing data and represents our opinion of a stock's risk-adjusted performance relative to other stocks. However, the rating does not incorporate all of the factors that can alter a stock's performance. For example, it doesn't always factor in recent corporate or industry events that could affect the stock price, nor does it include recent technology developments and competitive dynamics that may affect the company. For those reasons, we believe a rating alone cannot tell the whole story and should be part of an investor's overall research.