Narrow product focus and modest scale in the application usage management software space Good market position and diverse customer base Entrenched nature of its products within its customers' information technology environments Idiosyncratic software licensing arrangements and increasing use of virtualization and cloud computing are positive industry trends supporting the company's growth. Adjusted leverage just above 8x Consistent free cash flow generation Adequate liquidity The stable rating outlook incorporates our expectation that the company's embedded software products and near-term growth prospects will support consistent operating performance. We could lower the rating if weak information technology (IT) spending or increased competition result in margin compression, or if the company pursues debt-financed acquisitions such that adjusted leverage (treating preferred equity as debt) increases
