Dec-Q EPS of $0.11, vs. $0.15, misses our $0.17 estimate. Total revenues rose 3.1% to $267M, in line with our forecast. Results were hurt by delayed revenue recognition on two large contracts. We believe PMTC will continue to gain accounts with its Product Lifecycle Management products, but view its target of 20%-25% license revenue growth in FY 11 (Sep.) as optimistic. Our lower license revenue projection is offset by higher service revenues. Switching to non-GAAP from GAAP, we increase our FY 11 operating EPS estimate by $0.18 to $0.94, and target price by $3 to $24.