Israel		Not Applicable
(State or other Jurisdiction of		(I.R.S. Employer
Incorporation or Organization)		Identification No.)
2041 Landings Drive, Mountain View, California		94043
(Address of principal US executive offices)		(Zip Code)

				Page
Part I—		Financial Information
Item 1.		Condensed Consolidated Financial Statements:
		Balance Sheets		1
		Statements of Operations		2
		Statements of Cash Flows		3
		Notes to condensed consolidated financial statements		4-6
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations		6-11
Item 3.		Quantitative and Qualitative Disclosures About Market Risk		11-12
Part II—		Other Information
Item 1.		Legal Proceedings		12
Item 2.		Changes in Securities and Use of Proceeds		12
Item 3.		Defaults Upon Senior Securities		13
Item 4.		Submission of Matters to a Vote of Security Holders		13-14
Item 5.		Other Information		15
Item 6.		Exhibits and Reports on Form 8-K		15
Signature

		June 30, 2002				December 31, 2001
		Unaudited
ASSETS
Current assets:
Cash and cash equivalents		$	64,577			$	58,488
Accounts receivable			11,940				8,498
Prepaid expenses and other current assets			2,972				2,511
Total current assets			79,489				69,497
Property and equipment, net			2,163				2,112
Other assets			215				229
Total assets		$	81,867			$	71,838
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	698			$	468
Accrued compensation			3,720				4,574
Deferred revenues			26,298				26,694
Other current liabilities			3,739				2,991
Total current liabilities			34,455				34,727
Accrued severance pay, net			152				184
Long-term portion of deferred revenues			5,387				2,397
Long-term portion of capital lease obligations			8				13
Total long-term liabilities			5,547				2,594
Shareholders' equity:
Ordinary shares and additional paid-in capital			53,986				52,501
Deferred compensation			(274	)			(470	)
Shareholder's loan			—				(202	)
Accumulated deficit			(11,847	)			(17,312	)
Total shareholders' equity			41,865				34,517
Total liabilities and shareholders' equity		$	81,867			$	71,838

		Three Months Ended							Six Months Ended
		June 30,							June 30,
		2002			2001				2002			2001
		Unaudited							Unaudited
Revenue:
License		$	8,005		$	5,554			$	14,690		$	11,393
Maintenance			4,168			2,883				8,382			4,947
Other services			318			588				898			1,231
Total revenue			12,491			9,025				23,970			17,571
Cost of revenue:
License			40			186				73			378
Maintenance			500			447				1,001			814
Other services (1)			135			305				369			698
Total cost of revenue			675			938				1,443			1,890
Gross profit			11,816			8,087				22,527			15,681
Operating expenses:
Research and development			2,145			2,051				4,433			4,176
Sales and marketing			4,689			3,883				9,408			7,846
General and administrative			1,462			1,319				2,681			2,355
Non-cash charges related to equity issuances (1)			60			216				209			382
Total operating expenses			8,356			7,469				16,731			14,759
Operating income			3,460			618				5,796			922
Interest income			206			487				400			721
Interest expense and other income			—			(21	)			14			—
Net income before income taxes			3,666			1,084				6,210			1,643
Provision for income taxes			440			56				745			85
Net income		$	3,226		$	1,028			$	5,465		$	1,558
Basic earnings per share:
Basic net income per ordinary share		$	0.17		$	0.06			$	0.29		$	0.12
Shares used in per share calculation			18,825			17,259				18,702			12,836
Diluted earnings per share:
Diluted net income per ordinary share		$	0.15		$	0.05			$	0.26		$	0.08
Shares used in per share calculation			21,253			20,703				21,236			18,598

		Three Months Ended							Six Months Ended
		June 30,							June 30,
		2002				2001			2002			2001
Cost of other services revenue		$	2			$	4		$	4		$	9
Research and development, net		$	18			$	58		$	40		$	101
Sales and marketing			(3	)			97			72			166
General and administrative			45				61			97			115
Total included in operating expenses		$	60			$	216		$	209		$	382

		Six Months Ended June 30,
		2002				2001
		Unaudited
Cash flows from operating activities:
Net income		$	5,465			$	1,558
Adjustments to reconcile net income to net cash provided by operating activities :
Depreciation			427				416