For the third quarter of fiscal 2009, the company reported revenue growth of 21.0% year-over-year. This growth beat the industry average of 6.9%, and appears to have trickled down to the company's bottom line, as EPS improved from 5 cents to 10 cents per share. Pervasive's net income increased significantly in the third quarter, rising 101.4% from $940,000 thousand to $1.88 million. Net operating cash flow also increased slightly, rising 7.81% to $2.14 million. In addition, Pervasive has no debt to speak of, which we consider to be a relatively favorable sign, and a quick ratio of 4.30 clearly demonstrates the company's ability to cover its short-term cash needs. Looking ahead to the fourth quarter of fiscal 2009, Pervasive announced that it expects its revenue to be in the range of $10.5 million to $11.5 million. The company also anticipates GAAP diluted EPS of 4 cents to $7 cents in the fourth quarter. Although the company may harbor some minor weaknesses, we fell that they are unlikely to have a significant impact on future results. National Bankshares ( NKSH) operates as a bank holding company for The National Banks of Blacksburg, which provides retail and commercial banking services to individuals, non-profits, and local government units in Virginia. We have rated the company a buy since December 2008 because of a few notable strengths, including the company's solid stock price, expanding profit margins, notable return on equity, and growth in net income and EPS. Although National Bankshares recently reported its first quarter of fiscal 2009, our current rating is based on the fourth quarter of fiscal 2008. The company posted a slight improvement in EPS in the fourth quarter, with EPS rising from 46 cents in the fourth quarter of fiscal 2007 to 48 cents in the most recent quarter. Net income also increased in the fourth quarter, rising 3.3% from $3.22 million to $3.33 million. National Bankshares' gross profit margin is rather high at 66.4% and has increased from the fourth quarter of fiscal 2007. An additional modest strength for the company is its return on equity, which improved slightly when compared to the same quarter a year ago.