Israel		Not Applicable
(State or other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer 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 (Unaudited):
		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		7-11
Item 3.		Quantitative and Qualitative Disclosures About Market Risk		11-12
Item 4.		Controls and Procedures		12
Part II – Other Information
Item 1.		Legal Proceedings		12
Item 2.		Changes in Securities and Use of Proceeds		13
Item 3.		Defaults Upon Senior Securities		13
Item 4.		Submission of Matters to a Vote of Security Holders		13
Item 5.		Other Information		13
Item 6.		Exhibits and Reports on Form 8-K		14
Signatures
Certifications

		September 30, 2002				December 31, 2001
		Unaudited
ASSETS
Current assets:
Cash and cash equivalents		$	71,119			$	58,488
Accounts receivable			12,523				8,498
Prepaid expenses and other current assets			2,543				2,511
Total current assets			86,185				69,497
Property and equipment, net			2,185				2,112
Other assets			535				229
Total assets		$	88,905			$	71,838
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	741			$	468
Accrued compensation			4,461				4,574
Deferred revenues			24,989				26,694
Other current liabilities			4,609				2,991
Total current liabilities			34,800				34,727
Long-term portion of deferred revenues			7,712				2,397
Long-term portion of capital lease obligations			5				13
Other long-term liabilities			473				184
Total long-term liabilities			8,190				2,594
Shareholders’ equity:
Ordinary shares and additional paid-in capital			54,101				52,501
Deferred compensation			(199	)			(470	)
Shareholder’s loan			—				(202	)
Accumulated deficit			(7,987	)			(17,312	)
Total shareholders’ equity			45,915				34,517
Total liabilities and shareholders’ equity		$	88,905			$	71,838

		Three Months Ended September 30,							Nine Months Ended September 30,
		2002			2001				2002			2001
		Unaudited							Unaudited
Revenue:
License		$	8,939		$	6,525			$	23,629		$	17,918
Maintenance			4,664			2,956				13,046			7,903
Other services			351			308				1,249			1,539
Total revenue			13,954			9,789				37,924			27,360
Cost of revenue:
License			45			179				118			557
Maintenance			514			478				1,515			1,292
Other services(1)			195			226				564			924
Total cost of revenue			754			883				2,197			2,773
Gross profit			13,200			8,906				35,727			24,587
Operating expenses:
Research and development			2,291			2,216				6,724			6,392
Sales and marketing			5,275			4,352				14,683			12,198
General and administrative			1,487			1,306				4,168			3,661
Non-cash charges related to equity issuances(1)			34			110				243			492
Total operating expenses			9,087			7,984				25,818			22,743
Operating income			4,113			922				9,909			1,844
Interest income			259			420				659			1,142
Interest expense and other income,net			15			(11	)			29			(12	)
Net income before income taxes			4,387			1,331				10,597			2,974
Provision for income taxes			527			66				1,272			151
Net income		$	3,860		$	1,265			$	9,325		$	2,823
Basic earnings per share:
Basic net income per ordinary share		$	0.20		$	0.07			$	0.50		$	0.20
Shares used in per share calculation			18,983			17,563				18,798			14,424
Diluted earnings per share:
Diluted net income per ordinary share		$	0.18		$	0.06			$	0.44		$	0.15
Shares used in per share calculation			21,102			20,668				21,205			19,294

		Three Months Ended September 30								Nine Months Ended September 30,
		2002				2001				2002			2001
Cost of other services revenue		$	2			$	3			$	6		$	12
Research and development		$	15			$	55			$	55		$	156
Sales and marketing			(18	)			(2	)			54			164
General and administrative			37				57				134			172