Graham Corp. leads Tuesday percentage gainers

Graham Corp. (AMEX: GHM) reported record earnings of $3.4 million, or $0.86 a share, for the fourth quarter ended March 31, up from $1 million, or $0.25 per share, in the year-ago period. The Batavia, N.Y.-based vacuum and heat transfer equipment maker reported fourth-quarter revenue of $20.8 million, up from $15.9 million a year earlier.

Sutron Corp. (Nasdaq: STRN) reported it received record bookings in May totaling $9.3 million. The Sterling, Va.-based hydrological, meteorological and oceanic data monitoring company announced a record $18.9 million in revenue for the first five months of 2007.

Senomyx Inc. (Nasdaq: SNMX) announced its first introduction of Nestle Co. food products containing senomyx flavor ingredients.

Rackable Systems, Inc. (Nasdaq: RACK) shares are trading up after online options tracking services reported increased call option activity that may be an indicator of an acquisition offer coming or of further shareholder-friendly developments. Rackable was also mentioned on CNBC Tuesday morning as a potential takeover candidate.

Diamond Foods, Inc. (Nasdaq: DMND) raised sales projections after Monday’s closing bell. The snack company announced Monday that revenue increased 43% to $97 million for the third quarter ended April 30, from $67.8 million a year earlier.

These are the biggest percentage gainers in Tuesday's trading among companies with market capitalizations under $500 million:

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