Cutting-edge technology and outsourcing are the drivers of these two recommendations, says Jim Oberweis of The Oberweis Report.

Immersion (IMMR) is an intellectual property and technology licensing company focused on the development and licensing of patented haptic innovations and technologies, which allow people to use their sense of touch more fully when operating a wide variety of digital devices.

The company's technologies are designed to provide unique and customizable touch feedback effects. Immersion is focused specifically on marketing its technologies to the mobile communications and consumer electronics, automotive, gaming, commercial and industrial, and medical markets.

Clients include Samsung, LG, and Motorola. Immersion licenses its software and intellectual property to manufacturers for use in products sold under their own brand names.

The company holds more than 1,300 issued or pending patents in the US and other countries, covering a wide range of digital technologies, including many of the ways in which touch-related technology can be incorporated into and between hardware products, systems software, application software, and digital content. Immersion's haptic technology allows users to feel the vibrating force or resistance as they push a virtual button, scroll through a list, or reach the end of a menu.

In Immersion's latest reported first quarter, sales increased approximately 43%, to $13.9 million from $9.7 million in the first quarter of last year. The company reported earnings per share of 8 cents in the latest reported first quarter, versus a loss in the same quarter of last year. These shares may be appropriate for risk-oriented investors.

Meanwhile, WageWorks (WAGE) is a leading provider of tax-advantaged programs for consumer-directed health, commuter, and other employee spending account benefits.

As part of its services, WageWorks provides administrative services and account management software solutions for employers and their employees' flexible spending accounts, health savings accounts, health reimbursement accounts, and transit and parking programs.

Currently, the company services approximately 27,000 employers and 2.8 million employee program participants with its offering. Management estimates that they are the market leader in their industry, and that they will complement organic growth with approximately three acquisitions per year, selecting from the roughly 400 smaller competitors with sales of $5 to $25 million annually.

In the company's latest reported first quarter, sales increased approximately 27%, to $56.1 million, from $44.3 million in the first quarter of last year. WageWorks reported earnings per share of 20 cents in the latest reported first quarter, versus 12 cents in the same quarter of last year.

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