California		95-3533362
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

6175 Nancy Ridge Drive, Suite 300, San Diego, California		92121
(Address of principal executive offices)		(Zip Code)

				Page No.
PART I—FINANCIAL INFORMATION
Item 1.		Financial Statements:
		Balance Sheets at May 31, 2002 (unaudited) and November 30, 2001 (audited).		3
		Statements of Operations (unaudited) for the three and six months ended May 31, 2002 and May 31, 2001.		4
		Statements of Cash Flows (unaudited) for the six months ended May 31, 2002 and May 31, 2001.		5
		Notes to Financial Statements (unaudited).		6
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations		9
Item 3.		Quantitative and Qualitative Disclosures about Market Risk		17
PART II—OTHER INFORMATION
Item 1.		Legal Proceedings		17
Item 2.		Changes in Securities		17
Item 3.		Defaults Upon Senior Securities		17
Item 4.		Submission of Matters to a Vote of Security Holders		17
Item 5.		Other Information		17
Item 6.		Exhibits and Reports on Form 8-K		18
Signatures				19

ASSETS		May 31, 2002				November 30, 2001
		(Unaudited)				(Audited)
Current assets:
Cash and cash equivalents		$	6,405			$	6,394
Accounts receivable, net of allowance for doubtful accounts of $1,613 in 2002 and $1,425 in 2001			6,814				7,373
Inventory, net			3,541				2,821
Current portion of long-term receivables			2,086				1,663
Other current assets			455				431
Total current assets			19,301				18,682
Property and equipment, net			438				490
Long-term receivables and note receivable, net			2,051				2,259
Deposits			30				30
Total assets		$	21,820			$	21,461
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	1,450			$	1,338
Accrued expenses			340				277
Accrued salaries, wages and benefits			821				903
Current maturities of long-term debt			41				69
Deferred service revenue			401				411
Total current liabilities			3,053				2,998
Long-term debt, less current maturities			27				40
Total liabilities			3,080				3,038
Shareholders’ equity:
Preferred stock; no par value; 18,000,000 shares authorized; no shares issued or outstanding at May 31, 2002 or November 30, 2001			—				—
Common stock; no par value; 100,000,000 shares authorized; issued and outstanding 46,142,712 shares at May 31, 2002 and 45,798,322 shares at November 30, 2001			49,686				48,786
Accumulated deficit			(30,946	)			(30,363	)
Total shareholders’ equity			18,740				18,423
Commitments and contingencies
Total liabilities and shareholders’ equity		$	21,820			$	21,461

		Three Months Ended May 31,								Six Months Ended May 31,
		2002				2001				2002				2001
Net sales		$	5,623			$	4,480			$	9,989			$	8,445
Cost of sales			1,560				1,284				2,838				2,500
Gross margin			4,063				3,196				7,150				5,945
Operating expenses:
Research and development			611				902				1,253				1,713
Selling and marketing			3,049				2,470				5,770				4,663
General and administrative			422				396				861				846
Total operating expenses			4,082				3,768				7,884				7,222
Loss from operations			(19	)			(572	)			(734	)			(1,277	)
Other income (expense):
Interest income			76				164				182				355
Interest expense			(3	)			(16	)			(6	)			(29	)
Other, net			(6	)			(6	)			(24	)			(12	)
Total other income			67				142				152				314
Income (loss) before income taxes			48				(430	)			(582	)			(963	)
Income taxes			(1	)			—				(1	)			(1	)
Net income (loss)		$	47			$	(430	)		$	(583	)		$	(964	)
Net income (loss) per share, basic and diluted		$	.00			$	(.01	)		$	(.01	)		$	(.02	)
Weighted-average number of common shares outstanding, basic			46,113,799				45,524,882				46,024,279				45,522,310
Weighted-average number of common shares outstanding, diluted			47,433,448				45,524,882				46,024,279				45,522,310

		Six Months Ended May 31,
		2002				2001
Cash flows from operating activities:
Net loss		$	(583	)		$	(964	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			144				139
Provision for warranty repairs			78				19
Provision for obsolete inventory			56				48
(Reduction in) provision for demonstration inventory			(16	)			45
Provision for (reduction in) doubtful receivables			188				(309	)
Provision for (reduction in) doubtful long-term receivables			25				(73	)
Compensatory stock options granted			36				31
Changes in operating assets and liabilities:
Accounts receivable			371				(1,272	)
Inventory			(760	)			(540	)
Other current assets			(240	)			(837	)
Long-term receivables and note receivable			(24	)			51
Accounts payable			112				(461	)
Accrued expenses			(15	)			(361	)
Accrued salaries, wages and benefits			(82	)			(42	)
Deferred service revenue			(10	)			244
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