Delaware		77-0523543
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)
803 11th Avenue, Sunnyvale, CA (Address of principal executive offices)		94089 (Zip Code)

		Page No.
PART I    FINANCIAL INFORMATION
Item 1.    Financial Statements:
Unaudited Condensed Consolidated Balance Sheets as of September 30, 2002 and December 31, 2001		3
Unaudited Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2002 and 2001		4
Unaudited Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2002 and 2001		5
Notes to the Unaudited Condensed Consolidated Financial Statements		6
Item 2.     Management’s Discussion and Analysis of Financial Condition and Results of Operations		15
Item 3.     Quantitative and Qualitative Disclosures about Market Risk		37
Item 4.     Controls and Procedures		38
PART II    OTHER INFORMATION
Item 1.     Legal Proceedings		39
Item 2.     Changes in Securities and Use of Proceeds		39
Item 3.     Defaults upon Senior Securities		39
Item 4.     Submission of Matters to a Vote of Security Holders		39
Item 5.     Other Information		39
Item 6.     Exhibits and Reports on Form 8-K		39
SIGNATURE		40
CERTIFICATIONS		41

		September 30, 2002				December 31, 2001
		(unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	77,587			$	69,312
Short-term investments			113,996				150,656
Accounts receivable, net of allowances of $2,065 and $2,178, respectively			24,523				34,628
Prepaid expenses			4,758				5,217
Other current assets			3,715				1,718
Total current assets			224,579				261,531
Property and equipment, net			13,749				19,580
Intangible assets, net			74,317				154,359
Restricted cash			605				605
Other assets			1,930				2,035
		$	315,180			$	438,110
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	6,518			$	5,817
Accrued liabilities			35,308				41,221
Deferred revenue			38,733				39,067
Total current liabilities			80,559				86,105
Stockholders’ equity:
Common stock and additional paid-in capital, 500,000 shares authorized, 106,084 and 104,474 shares issued and outstanding, respectively			553,844				553,111
Treasury stock, at cost, 4,157 and 789 shares, respectively			(13,444	)			(3,594	)
Deferred stock-based compensation			(2,761	)			(10,584	)
Accumulated other comprehensive income			253				265
Accumulated deficit			(303,271	)			(187,193	)
Total stockholders’ equity			234,621				352,005
		$	315,180			$	438,110

		Three months ended September 30,								Nine months ended September 30,
		2002				2001				2002				2001
		(unaudited)
Revenues:
License		$	12,398			$	20,712			$	43,271			$	90,442
Services			17,635				23,079				52,450				69,655
Total revenues			30,033				43,791				95,721				160,097
Cost of revenues:
License			599				660				2,616				1,832
Services			9,165				14,479				28,340				47,363
Total cost of revenues			9,764				15,139				30,956				49,195
Gross profit			20,269				28,652				64,765				110,902
Operating expenses:
Research and development			6,720				6,909				20,720				23,776
Sales and marketing			17,566				21,984				56,251				76,623
General and administrative			4,412				5,408				14,004				16,838
Amortization of deferred stock-based compensation			1,020				3,207				4,285				12,068
Amortization of acquired intangible assets			732				22,209				3,278				66,209
Impairment of goodwill			76,431				—				76,431				—
Restructuring costs			1,179				650				7,969				650
Facilities relocation charges			—				9,382				1,674				22,166
Total operating expenses			108,060				69,749				184,612				218,330
Loss from operations			(87,791	)			(41,097	)			(119,847	)			(107,428	)
Interest income and other, net			1,284				1,997				4,673				6,986
Net loss before provision for income taxes			(86,507	)			(39,100	)			(115,174	)			(100,442	)
Provision for income taxes			116				—				904				1,420
Net loss		$	(86,623	)		$	(39,100	)		$	(116,078	)		$	(101,862	)
Basic and diluted net loss per share		$	(0.85	)		$	(0.39	)		$	(1.13	)		$	(1.02	)
Shares used in computing basic and diluted net loss per share			101,859				100,672				102,633				99,508

		Nine months ended September 30,
		2002				2001
		(unaudited)
Cash flows from operating activities:
Net loss		$	(116,078	)		$	(101,862	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation			6,604				5,456
Provisions for doubtful accounts and sales returns			(113	)			2,720
Amortization of deferred stock-based compensation			4,285				12,068
Amortization of acquired intangible assets			3,278				66,209
Impairment of goodwill			76,431				—
Restructuring costs			2,573				—
Facilities relocation charges			1,674				21,357
Changes in assets and liabilities:
Accounts receivable			10,218				48
Prepaid expenses and other assets