California		94-2974062
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

				Page Number
Part I:		Financial Information
Item 1:		Financial Statements
		Condensed Consolidated Balance Sheets as of June 30, 2002 and December 31, 2001		3
		Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2002 and 2001		4
		Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2002 and 2001		5
		Notes to Condensed Consolidated Financial Statements		6
Item 2:		Management’s Discussion and Analysis of Financial Condition and Results of Operations		14
Item 3:		Quantitative and Qualitative Disclosures About Market Risk		31
Part II:		Other Information
Item 1:		Legal Proceedings		32
Item 4:		Submission of Matters to a Vote of Security Holders		32
Item 6:		Exhibits and Reports on Form 8-K		33
Signature				34

		June 30, 2002				December 31, 2001
ASSETS
Current assets:
Cash and cash equivalents		$	79,497			$	72,564
Short-term investments			67,795				62,585
Accounts receivable, net			76,054				83,762
Inventories			6,596				12,044
Other current assets			20,428				23,360
Total current assets			250,370				254,315
Property and equipment, net			100,262				112,090
Goodwill			2,707				54,138
Intangible assets, net			52,894				61,231
Other assets			10,539				20,651
Total assets		$	416,772			$	502,425
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term borrowings		$	4,641			$	17,851
Accounts payable			14,840				5,988
Accrued compensation and related benefits			20,178				18,916
Other accrued liabilities			68,116				70,292
Deferred revenues			33,605				29,776
Total current liabilities			141,380				142,823
Long-term borrowings			39,485				25,790
Deferred taxes			3,186				3,944
Other long-term liabilities			10,008				13,324
Convertible subordinated debentures			144,353				183,577
Contingencies (Note 11)
Shareholders’ equity:
Preferred stock, $.01 par value: 2,000,000 shares authorized, none outstanding			—				—
Common stock, $.01 par value: 100,000,000 shares authorized, shares outstanding: 52,560,148 and 51,889,454 at June 30, 2002 and December 31, 2001, respectively			197,929				195,663
Deferred stock compensation			(761	)			(1,147	)
Accumulated other comprehensive loss			(2,333	)			(1,995	)
Accumulated deficit			(116,475	)			(59,554	)
Total shareholders’ equity			78,360				132,967
Total liabilities and shareholders’ equity		$	416,772			$	502,425

		Three Months Ended June 30,								Six Months Ended June 30,
		2002				2001				2002				2001
Net revenues:
License		$	17,780			$	28,609			$	40,719			$	60,112
Services			60,424				64,827				126,001				125,712
Other			17,829				19,943				35,562				42,088
Total net revenues			96,033				113,379				202,282				227,912
Cost of revenues:
Cost of license revenues			3,121				3,251				6,005				6,486
Cost of services revenues			34,562				37,843				68,765				76,640
Cost of other revenues			14,023				18,567				32,557				38,373
Total cost of revenues			51,706				59,661				107,327				121,499
Gross margin			44,327				53,718				94,955				106,413
Operating expenses:
Research and development			17,456				24,716				35,537				50,658
Selling, general and administrative			40,693				60,096				83,770				125,835
Restructuring charges			—				13,153				—				20,107
Total operating expenses			58,149				97,965				119,307				196,600
Loss from operations			(13,822	)			(44,247	)			(24,352	)			(90,187	)
Interest and other income (expense), net			(9,291	)			(1,635	)			(9,517	)			(1,851	)
Loss before income taxes			(23,113	)			(45,882	)			(33,869	)			(92,038	)
Provision (benefit) for income taxes			(5,460	)			75				(28,379	)			150
Net loss before cumulative effect of change in accounting principle			(17,653	)			(45,957	)			(5,490	)			(92,188	)
Cumulative effect of change in accounting principle			—				—				(51,431	)			—
Net loss		$	(17,653	)		$	(45,957	)		$	(56,921	)		$	(92,188	)
Basic and diluted loss per share before cumulative effect of change in accounting principle		$	(0.34	)		$	(0.89	)		$	(0.11	)		$	(1.79	)
Cumulative effect of change in accounting principle			—				—				(0.98	)			—
Basic and diluted loss per share		$	(0.34	)		$	(0.89	)		$	(1.09	)		$	(1.79	)
Basic and diluted weighted average shares outstanding			52,400				51,486				52,233				51,362

		Six Months Ended June 30,
		2002				2001
Cash flows from operating activities:
Net loss		$	(56,921	)		$	(92,188	)
Reconciliation of net loss to cash provided by (used in) operating activities:
Depreciation			18,780				19,502
Amortization of intangible assets and stock-based compensation			8,658				16,003
Gain on sale of marketable securities