Delaware		94-3112828
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

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PART I.		FINANCIAL INFORMATION
Item 1.		Financial Statements:
		Consolidated Condensed Balance Sheets as of June 30, 2002 and September 30, 2001		1
		Consolidated Condensed Statements of Operations for the Three and Nine Months Ended June 30, 2002 and June 30, 2001		2
		Consolidated Condensed Statements of Cash Flows for the Nine Months Ended June 30, 2002 and June 30, 2001		3
		Notes to Unaudited Consolidated Condensed Financial Statements		4
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations		11
Item 3.		Quantitative and Qualitative Disclosures about Market Risk		30
PART II.		OTHER INFORMATION
Item 1.		Legal Proceedings		31
Item 6.		Exhibits and Reports on Form 8-K		34
Signature				35

		June 30, 2002				September 30, 2001
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	30,982			$	44,195
Marketable securities			65,708				85,700
Accounts receivable			197				2,368
Prepaid and deferred taxes			7,850				7,665
Prepaids and other current assets			4,290				3,319
Total current assets			109,027				143,247
Property and equipment, net			13,456				15,862
Marketable securities, long-term			54,000				12,057
Restricted investments			12,577				13,605
Deferred taxes, long-term			37,637				44,275
Other assets			6,154				8,744
Total assets		$	232,851			$	237,790
LIABILITIES
Current liabilities:
Accounts and taxes payable, accrued payroll and other liabilities		$	7,773			$	7,977
Deferred revenue			11,146				14,398
Total current liabilities			18,919				22,375
Deferred revenue, less current portion			17,124				24,058
Total liabilities			36,043				46,433
Commitments and contingencies (Notes 4 and 6)
STOCKHOLDERS’ EQUITY
Convertible preferred stock, $.001 par value:
Authorized: 5,000,000 shares; Issued and outstanding: no shares			—				—
Common Stock, $.001 par value:
Authorized: 500,000,000 shares; Issued and outstanding: 98,619,492 shares at June 30, 2002 and 100,287,676 shares at September 30, 2001			99				100
Additional paid-in capital			269,339				282,911
Deferred stock-based compensation			—				(461	)
Accumulated deficit			(73,042	)			(91,861	)
Accumulated other comprehensive gain			412				668
Total stockholders’ equity			196,808				191,357
Total liabilities and stockholders’ equity		$	232,851			$	237,790

		Three Months Ended June 30,						Nine Months Ended June 30,
		2002			2001			2002			2001
		(in thousands, except per share amounts)
		(Unaudited)
Revenues:
Contract revenues		$	1,507		$	3,514		$	6,313		$	18,964
Royalties			22,183			19,787			65,772			70,300
Total revenues			23,690			23,301			72,085			89,264
Costs and expenses:
Cost of contract revenues			1,786			2,692			5,786			7,969
Research and development			5,844			4,822			16,190			13,168
Marketing, general and administrative			8,411			13,893			26,185			35,725
Total costs and expenses			16,041			21,407			48,161			56,862
Operating income			7,649			1,894			23,924			32,402
Interest and other income, net			1,423			2,317			5,029			6,945
Income before income taxes			9,072			4,211			28,953			39,347
Provision for income taxes			3,175			504			10,134			14,558
Net income		$	5,897		$	3,707		$	18,819		$	24,789
Net income per share—basic		$	0.06		$	0.04		$	0.19		$	0.25
Net income per share—diluted		$	0.06		$	0.04		$	0.18		$	0.23
Number of shares used in per share calculations:
Basic			99,511			99,969			99,947			99,200
Diluted			101,761			102,889			102,989			107,214

		Nine Months Ended June 30,
		2002				2001
		(in thousands)
		(Unaudited)
Cash flows from operating activities:
Net income		$	18,819			$	24,789
Adjustments to reconcile net income to net cash provided by operating activities:
Tax benefit (cost) of stock option exercises			(71	)			6,659
Depreciation			3,735				3,171
Amortization of deferred compensation			(160	)			464
Amortization of goodwill			200				200
Gain on sale of securities			(2,022	)			—
Increase in valuation allowance related to investments			1,991				—
Change in operating assets and liabilities:
Accounts receivable			2,171				(6,031	)
Prepaids, deferred taxes and other assets			5,322				(3,126	)
Accounts and taxes payable, accrued payroll and other liabilities			(246	)			895
Deferred revenue			(10,186	)			(5,418	)
Net cash provided by operating activities			19,553				21,603
Cash flows from investing activities:
Purchases of property and equipment			(1,329	)			(12,913	)
Purchases of marketable securities			(245,776	)			(651,411	)
Maturities of marketable securities			223,573				635,227
Purchases of investments			—				(5,000	)
Sales of investments			2,581				—
Decrease (increase) in restricted investments			1,028				(3,064	)
Net cash used in investing activities			(19,923	)			(37,161	)
Cash flows from financing activities:
Net proceeds from issuance of Common Stock			3,466				10,337
Repurchase of Common Stock			(16,305	)			—
Net cash provided by (used in) financing activities			(12,839	)			10,337
Effect of exchange rates on cash and cash equivalents			(4	)			(131	)
Net decrease in cash and cash equivalents			(13,213	)			(5,352	)
Cash and cash equivalents at beginning of period			44,195				63,093