NE(MI)SSED GUIDANCE

NSTC

NSTC reported a mix results. Revenues good (28%), net income good, earnings flat (more shares, option expenses), backlog good, balance sheet good, Q3/05 outlook lowered by a penny; and 2005 revenue outlook raised but EPS outlook lowered by a nickel due to unexpected financial expenses and ramp up of contracts. Valuation remains reasonable. I incline to hold it at this point, instead of panic, but it would be pleasant today.