PMTC posts DecQ EPS of $0.15 vs. $0.04, $0.05 above our estimate. Total revenues rose 7.5% to $258M, $17M above our forecast. Software license revenues increased 48%, driven by large deals. Although we think PMTC is gaining market share by displacing competitors, we view the growth in license revenues as unsustainable due to a challenging environment. We are concerned about weakness in Europe and see possible headwind from foreign currency exchange. We raise our FY 10 (Sep.) EPS estimate by $0.02 to $0.53 on DecQ outperformance but keep our target price of $16.