PMTC pre-announces Q2 revenues will be approximately $300 million, lighter than we and Capital IQ consensus had forecast, and expects weaker than expected EPS. The company pointed to one large European deal that failed to close and remains at risk, but also weakness in North America that PMTC indicated was not for lack of industry demand. We are reducing our FY 12 (Sep) revenue growth expectations and cut our EPS estimate by $0.04 to $1.11. We are also lowering our 12-month target price by $2 to $24, to reflect added operational risks.