DELAWARE		77-0430270
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

3585 Monroe Street Santa Clara, California		95051
(Address of principal executive offices)		(Zip Code)

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PART I.		CONDENSED CONSOLIDATED FINANCIAL INFORMATION
Item 1.		Condensed Consolidated Financial Statements (Unaudited):
		Condensed Consolidated Balance Sheets September 30, 2002 and June 30, 2002		3
		Condensed Consolidated Statements of Operations Three months ended September 30, 2002 and September 30, 2001		4
		Condensed Consolidated Statements of Cash Flows Three months ended September 30, 2002 and September 30, 2001		5
		Notes to Condensed Consolidated Financial Statements		6
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations		16
Item 3.		Quantitative and Qualitative Disclosures About Market Risk		33
Item 4.		Controls and Procedures		34
PART II.		OTHER INFORMATION
Item 1.		Legal Proceedings		34
Item 2.		Changes in Securities		Not Applicable
Item 3.		Defaults Upon Senior Securities		Not Applicable
Item 4.		Submission of Matters to a Vote of Security Holders		Not Applicable
Item 5.		Other Information		Not Applicable
Item 6.		Exhibits and Reports on Form 8-K		35
Signatures				36
Certifications				37

ITEM 1.

FINANCIAL STATEMENTS

		September 30, 2002				June 30, 2002
		(Unaudited)				(Note 2)
ASSETS
Current assets:
Cash and cash equivalents		$	84,109			$	71,830
Short-term investments			139,025				164,667
Accounts receivable, net			39,755				51,344
Inventories, net			34,198				24,627
Deferred taxes			42,890				42,882
Prepaid expenses and other current assets			10,835				13,126
Total current assets			350,812				368,476
Property and equipment, net			97,907				99,551
Marketable securities			185,593				163,560
Goodwill			1,021				1,021
Deferred taxes			92,875				90,617
Other assets			12,252				12,526
TOTAL ASSETS		$	740,460			$	735,751
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	35,951			$	29,215
Accrued compensation and benefits			13,050				12,082
Restructuring liabilities			21,741				23,421
Accrued purchase commitments			5,008				8,063
Accrued warranty			12,104				9,055
Deferred revenue			45,187				40,772
Other accrued liabilities			18,239				23,913
Total current liabilities			151,280				146,521
Long-term deposit			272				272
Convertible subordinated notes			200,000				200,000
Commitments and contingencies (Note 4)
Stockholders’ equity:
Common stock and capital in excess of par value			655,489				653,547
Deferred stock compensation			(8,166	)			(10,167	)
Accumulated other comprehensive income			2,589				1,851
Accumulated deficit			(261,004	)			(256,273	)
Total stockholders’ equity			388,908				388,958
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	740,460			$	735,751

		Three Months Ended September 30,
		2002				2001
Net revenue		$	100,569			$	108,289
Cost and expenses:
Cost of revenue			51,499				83,312
Sales, marketing and service			33,253				36,985
Research and development			14,509				16,411
General and administrative			6,935				8,113
Amortization of deferred stock compensation			2,001				2,873
Amortization of goodwill			—				10,646
Amortization of purchased intangible assets			—				1,207
Total costs and expenses			108,197				159,547
Operating loss			(7,628	)			(51,258	)
Loss on investments			—				(6,000	)
Other income, net			880				2,422
Loss before income taxes			(6,748	)			(54,836	)
Benefit for income taxes			(2,017	)			(18,828	)
Net loss		$	(4,731	)		$	(36,008	)
Net loss per share—basic and diluted		$	(0.04	)		$	(0.32	)
Shares used in per share calculation—basic and diluted			114,420				111,953

		Three Months Ended September 30,
		2002				2001
Cash flows from operating activities:
Net loss		$	(4,731	)		$	(36,008	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation			8,652				7,747
Amortization of goodwill			—				10,646
Amortization of purchased intangible assets			—				1,207
Provision for doubtful accounts			—				2,700
Provision for inventory			—				5,000
Deferred income taxes			(2,266	)			(19,857	)
Amortization of deferred stock compensation			2,001				2,873
Write-down of investments			—				6,000
Compensation expense for options granted to consultants			—				210
Changes in operating assets and liabilities:
Accounts receivable			11,589				8,434
Inventories			(9,571	)			3,945
Prepaid expenses and other current and noncurrent assets			2,565				1,604
Accounts payable			6,736				14,340
Accrued compensation and benefits			968				(1,783	)
Restructuring liabilities			(1,680	)			—
Accrued purchase commitments			(3,055	)			(426	)
Accrued warranty			3,049				3,236
Deferred revenue			4,415				5,323
Other accrued liabilities			(5,674	)			2,461
Net cash provided by operating activities			12,998				17,652
Cash flows from investing activities:
Capital expenditures			(7,008	)			(8,462	)
Purchases and maturities of investments, net			4,347				22,558
Net cash (used in) provided by investing activities			(2,661	)			14,096
Cash flows from financing activities:
Proceeds from issuance of common stock			1,942				3,864
Net cash provided by financing activities			1,942				3,864
Net increase in cash and cash equivalents			12,279				35,612
Cash and cash equivalents at beginning of period			71,830				87,722
Cash and cash equivalents at end of period		$	84,109			$	123,334