Delaware		75-2094811-2
(State or Other Jurisdiction of		(IRS Employer
Incorporation or Organization)		Identification No.)

PART I.		FINANCIAL INFORMATION		Page
Item 1.		Financial Statements
		Condensed Consolidated Balance Sheets as of March 31, 2002 and September 30, 2002 (unaudited)		3
		Condensed Consolidated Statements of Operations for the three and six month periods ended September 30, 2001 and 2002 (unaudited)		4
		Condensed Consolidated Statements of Cash Flows for the six month periods ended September 30, 2001 and 2002 (unaudited)		5
		Notes to Condensed Consolidated Financial Statements		6
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations		8
Item 3.		Quantitative and Qualitative Disclosures About Market Risk		21
PART II.		OTHER INFORMATION
Item 1.		Legal Proceedings		22
Item 2.		Changes in Securities and Use of Proceeds		22
Item 6.		Exhibits and Reports on Form 8-K		23

		3/31/2002				9/30/2002
						(unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	47,160			$	46,070
Short-term investments			—				3,476
Restricted cash			349				351
Accounts receivable, net of allowance for doubtful accounts of $202 at March 31, 2002 and at September 30, 2002			6,169				3,302
Prepaid expenses and other assets			1,586				1,805
Deferred tax assets			2,082				2,082
Total current assets			57,346				57,086
Property and Equipment:
Computer equipment and software			10,337				11,807
Furniture, fixtures and leasehold improvements			5,316				4,664
Other equipment			410				373
			16,063				16,844
Less accumulated depreciation and amortization			(8,094	)			(9,243	)
Net property and equipment			7,969				7,601
Deferred tax assets, net of current portion			1,962				1,958
Other assets			492				318
Total assets		$	67,769			$	66,963
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	642			$	600
Accrued liabilities			4,189				4,547
Future rentals for idle facility			1,602				1,696
Deferred revenue			1,055				1,043
Total current liabilities			7,488				7,886
Deferred revenue, net of current portion			891				748
Future rentals for idle facility, net of current portion			1,048				262
Stockholders’ equity:
Common stock, $.01 par value; 25,000,000 shares authorized at March 31, 2002 and September 30, 2002; 15,063,591 issued and 12,133,275 outstanding at March 31, 2002 and 15,077,415 issued and 11,863,199 outstanding at September 30, 2002			150				150
Additional paid-in capital			81,110				81,149
Treasury stock			(21,059	)			(23,094	)
Deferred compensation			(27	)			(12	)
Accumulated deficit			(1,832	)			(126	)
Total stockholders’ equity			58,342				58,067
Total liabilities and stockholders’ equity		$	67,769			$	66,963

		Three Months Ended								Six Months Ended
		9/30/2001				9/30/2002				9/30/2001				9/30/2002
		(unaudited)								(unaudited)
Revenues:
Network management services		$	9,655			$	9,881			$	18,290			$	20,172
Maintenance and equipment			2,630				2,223				5,244				4,519
Total revenues			12,285				12,104				23,534				24,691
Costs of revenues:
Network management services			5,537				6,056				10,770				12,022
Maintenance and equipment			1,843				1,496				3,623				3,017
Total costs of revenues			7,380				7,552				14,393				15,039
Gross profits:
Network management services			4,118				3,825				7,520				8,150
Maintenance and equipment			787				727				1,621				1,502
			4,905				4,552				9,141				9,652
Operating expenses:
Development			910				859				1,712				1,751
Selling and marketing			1,563				1,689				2,962				3,519
General and administrative			1,280				849				2,361				2,133
Amortization of deferred compensation			9				7				18				15
Total operating expenses			3,762				3,404				7,053				7,418
Operating income			1,143				1,148				2,088				2,234
Other income (expense):
Interest income			412				218				943				418
Interest expense			(3	)			(1	)			(6	)			(1	)
Other, net			(2	)			(1	)			14				15
Total other income (expense)			407				216				951				432
Income before income taxes			1,550				1,364				3,039				2,666
Income tax expense			541				491				1,061				960
Net income		$	1,009			$	873			$	1,978			$	1,706
Basic net income per share		$	0.08			$	0.07			$	0.16			$	0.14
Weighted average shares used in basic per share calculation			12,107				11,957