Our downgrade reflects our concern about economic developments. Despite the European Union's plan to resolve Greece's debt crisis, we believe economic growth in Europe will be impeded by either higher taxes or lower spending as governments try to reduce their budget deficits. We think PMTC will be more adversely affected than many other IT companies due to its exposure to Europe, which accounted 40% of FY 09 (Sep.) revenues. In addition to weaker growth, we see headwinds from foreign currency exchange. We keep our FY 10 EPS estimate of $0.48 and our target price at $16.