Delaware		94-3077394
(State of Incorporation)		(I.R.S. Employer
		Identification No.)

		PART I—FINANCIAL INFORMATION
				Page No.
Item 1		Financial Statements:
		Condensed Consolidated Balance Sheets as of June 30, 2002 and December 31, 2001—(unaudited)		3
		Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2002 and 2001—(unaudited)		4
		Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2002 and 2001—(unaudited)		5
		Notes to Condensed Consolidated Financial Statements—(unaudited)		6
Item 2		Management’s Discussion and Analysis of Financial Condition and Results of Operations		13
Item 3		Quantitative and Qualitative Disclosures about Market Risk		27
		PART II—OTHER INFORMATION
Item 1		Legal Proceedings		28
Item 2		Changes in Securities and Use of Proceeds		28
Item 3		Defaults upon Senior Securities		28
Item 4		Submission of Matters to a Vote of Security Holders		28
Item 5		Other Information		28
Item 6		Exhibits and Reports on Form 8-K		28
		Signature		29

		June 30, 2002			December 31, 2001
		(unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	29,213		$	63,281
Short-term investments			26,235			82,414
Accounts receivable, net			53,475			39,581
Deferred tax assets			57,835			61,136
Other current assets			10,574			12,373
Total current assets			177,332			258,785
Property and equipment, net			54,111			42,884
Intangible assets, net			35,976			15,616
Goodwill, net			269,569			16,026
Long-term deferred tax assets			57,559			19,754
Other assets			5,784			2,196
		$	600,331		$	355,261
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	21,295		$	8,316
Accrued liabilities			61,297			41,440
Deferred revenue			53,719			41,748
Total current liabilities			136,311			91,504
Deferred revenue—net of current portion			2,983			3,798
Total liabilities			139,294			95,302
Stockholders’ equity			461,037			259,959
		$	600,331		$	355,261

		Three Months Ended June 30,								Six Months Ended June 30,
		2002				2001				2002				2001
		(unaudited)
Revenue:
License		$	30,629			$	40,103			$	59,379			$	78,586
Service and support			30,928				22,408				57,809				44,972
Total revenue			61,557				62,511				117,188				123,558
Cost of revenue:
License			2,215				1,205				3,926				1,931
Service and support			11,325				12,744				21,920				25,718
Cost of revenue			13,540				13,949				25,846				27,649
Gross profit			48,017				48,562				91,342				95,909
Operating expenses:
Sales and marketing			34,219				30,577				65,938				61,028
Research and development			18,252				15,982				32,772				31,230
General and administrative			9,606				7,279				16,675				14,675
Amortization of acquired intangibles			2,166				7,700				3,598				16,754
Write-off of in-process research and development			33,200				—				33,200				—
Restructuring charges			—				6,087				—				6,087
Litigation settlement charge			—				—				67,000				—
Total operating expenses			97,443				67,625				219,183				129,774
Loss from operations			(49,426	)			(19,063	)			(127,841	)			(33,865	)
Interest and other income, net			1,348				3,715				1,862				4,843
Loss before benefit from income taxes			(48,078	)			(15,348	)			(125,979	)			(29,022	)
Benefit from income taxes			(2,224	)			(5,372	)			(33,384	)			(8,445	)
Net loss		$	(45,854	)		$	(9,976	)		$	(92,595	)		$	(20,577	)
Net loss per share:
Basic and diluted		$	(0.45	)		$	(0.11	)		$	(0.96	)		$	(0.23	)
Weighted average common shares outstanding			102,643				88,719				96,540				88,287

		Six Months Ended June 30,
		2002				2001
		(unaudited)
Cash flows from operating activities:
Net loss		$	(92,595	)		$	(20,577	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Deferred taxes (net of effect of acquisitions)			(37,422	)			(18,868	)
Depreciation and amortization			12,193				27,118
Write-off of in-process research and development			33,200				—
Amortization of deferred stock compensation			289				—
Provision for doubtful accounts and sales returns			183				1,465
Tax benefit from stock option exercises			—				2,277
Changes in assets and liabilities:
Accounts receivable			(161	)			8,974
Other assets			1,100				8,069
Accounts payable			8,893				(1,410	)
Accrued liabilities			(12,295	)			7,384
Deferred revenue			2,346				(8,592	)
Net cash provided by (used in) operating activities			(84,269	)			5,840
Cash flows from investing activities:
Purchases of available-for-sale securities			(16,053	)			(194,522	)
Maturities and sales of available-for-sale securities			72,775