Delaware		94-3267638
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)
2400 Bridge Parkway,
Redwood Shores, CA		94065-1166
(Address of principal executive offices)		(Zip Code)

				Page
Part I.		FINANCIAL INFORMATION
Item 1.		Financial Statements (Unaudited)
		Condensed Consolidated Balance Sheets as of August 31, 2002 and May 31, 2002		2
		Condensed Consolidated Statements of Operations for the three months ended August 31, 2002 and 2001		3
		Condensed Consolidated Statements of Cash Flows for the three months ended August 31, 2002 and 2001		4
		Notes to Condensed Consolidated Financial Statements		5
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations		10
Item 3.		Qualitative and Quantitative Disclosures About Market Risk		27
Item 4.		Controls and Procedures		28
Part II.		OTHER INFORMATION
Item 1.		Legal Proceedings		28
Item 2.		Changes in Securities and Use of Proceeds		29
Item 3.		Defaults Upon Senior Securities		29
Item 4.		Submission of Matters to a Vote of Securities Holders		29
Item 5.		Other Information		29
Item 6.		Exhibits and Reports on Form 8-K		29
SIGNATURES				30
CERTIFICATIONS				31

		August 31, 2002				May 31, 2002
						(Note 1)
ASSETS
Current assets:
Cash and cash equivalents		$	8,350			$	9,523
Short-term investments			12,008				12,618
Accounts receivable, net			13,011				12,182
Prepaid expenses and other current assets			1,032				901
Total current assets			34,401				35,224
Property and equipment, net			4,016				4,575
Goodwill, net			5,288				5,288
Purchased intangible assets, net			2,109				2,755
Other assets			888				846
Total assets		$	46,702			$	48,688
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	1,593			$	1,547
Accrued expenses			6,426				7,844
Deferred revenue			8,773				10,127
Short-term debt and current portion of capital lease obligations			2,269				1,381
Total current liabilities			19,061				20,899
Deferred revenue			201				52
Long-term debt and other long-term liabilities			3,166				3,019
Capital lease obligations, less current portion			271				372
Total liabilities			22,699				24,342
Stockholders’ equity:
Preferred stock, issuable in series: $0.001 par value; 5,000,000 authorized shares at August 31, 2002; none issued or outstanding			—				—
Common stock: $0.001 par value; 200,000,000 authorized shares at August 31, 2002; 48,518,461 shares issued at August 31, 2002 and 48,264,537 shares issued at May 31, 2002			48				48
Additional paid-in capital			182,687				182,424
Deferred stock compensation			(1,309	)			(2,578	)
Notes receivable from stockholders			(76	)			(188	)
Treasury stock: 377,500 shares held at August 31, 2002 and at May 31, 2002, at cost			(201	)			(201	)
Accumulated deficit			(157,055	)			(155,122	)
Accumulated other comprehensive loss			(91	)			(37	)
Total stockholders’ equity			24,003				24,346
Total liabilities and stockholders’ equity		$	46,702			$	48,688

		Three Months Ended August 31 ,
		2002				2001
Revenues:
License		$	7,450			$	7,008
Services			7,246				7,874
Total revenues			14,696				14,882
Cost of revenues:
Cost of license			50				59
Cost of services			3,293				4,568
Amortization of acquired developed technology			388				372
Total cost of revenues			3,731				4,999
Gross profit			10,965				9,883
Operating expenses:
Research and development			3,027				4,125
Sales and marketing			6,940				9,612
General and administrative			1,353				1,991
Amortization of deferred stock compensation and other stock charges			1,351				2,294
Amortization of purchased intangible assets			258				369
Amortization of goodwill			—				538
Acquired in-process research and development			—				2,199
Total operating expenses			12,929				21,128
Loss from operations			(1,964	)			(11,245	)
Interest income and other, net			96				71
Loss before provision for income taxes			(1,868	)			(11,174	)
Provision for income taxes			(65	)			(25	)
Net loss		$	(1,933	)		$	(11,199	)
Basic and diluted net loss per share		$	(0.04	)		$	(0.25	)
Shares used in computing basic and diluted net loss per share			47,779				45,402

		Three months ended August 31,
		2002				2001
Operating activities:
Net loss		$	(1,933	)		$	(11,199	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			805				915
Amortization of purchased intangible assets			258				369
Amortization of goodwill			—				538
Amortization of acquired developed technology			388				372
Acquired in-process research and development			—				2,199
Amortization of deferred stock compensation			784				2,294
Issuance of common stock to third parties			82				—
Compensation expense resulting from acceleration of vesting of common stock			314				—
Compensation expense resulting from cancelled stock options			171				—
Changes in operating assets and liabilities:
Accounts receivable			(879	)			7,771
Prepaid expenses and other current assets			(142	)			347
Other assets			(42	)			(39	)
Accounts payable			46				(2,363	)
Accrued expenses			(1,418	)			(1,727	)
Deferred revenue			(1,205	)			(4,716	)
Other liabilities			(12	)			236
Net cash used in operating activities			(2,783	)			(5,003	)
Investing activities:
Purchases of short-term investments			(5,168	)			(9,232	)
Proceeds from redemptions and maturities of short-term investments			5,774				17,143
Purchases of property and equipment			(132	)			(309	)
Net cash provided by investing activities			474				7,602
Financing activities:
Proceeds from issuance of common stock			181				2,077
Repurchase of common stock