Delaware		04-2685985
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

Common Stock, par value $.001		24,605,079
Class		Number of Shares Outstanding at December 31, 2002

				Page
PART I.		FINANCIAL INFORMATION
Item 1.		Financial Statements
		Condensed Consolidated Balance Sheets as of December 31 and September 30, 2002		1
		Condensed Consolidated Statements of Operations for the Three Months Ended December 31, 2002 and 2001		2
		Condensed Consolidated Statements of Cash Flows for the Three Months Ended December 31, 2002 and 2001		3
		Notes to Condensed Consolidated Financial Statements		4
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations		10
Item 3.		Quantitative and Qualitative Disclosures about Market Risk		20
Item 4.		Controls and Procedures		21
PART II.		OTHER INFORMATION
Item 1.		Legal Proceedings		22
Item 2.		Changes in Securities		22
Item 3.		Defaults Upon Senior Securities		22
Item 4.		Submission of Matters to a Vote of Security Holders		22
Item 5.		Other Information		22
Item 6.		Exhibits and Reports on Form 8-K
		Exhibits		22
		Reports on Form 8-K		22

		December 31, 2002				September 30, 2002
Assets
Current assets:
Cash and cash equivalents		$	24,891			$	25,156
Short-term investments			35,698				51,156
Accounts receivable, net of allowances of $1,412 and $1,903 at December 31 and September 30, 2002, respectively			20,092				14,612
Prepaid royalties and maintenance			2,115				2,410
Deferred income taxes			2,503				2,503
Other current assets			2,792				2,261
Total current assets			88,091				98,098
Property and equipment, net			7,837				8,212
Computer software costs, net			13,790				14,628
Goodwill and intangible assets, net			13,582				13,600
Deferred income taxes			10,115				10,104
Prepaid royalties—non current			6,432				6,470
Other assets			2,220				2,174
Total assets		$	142,067			$	153,286
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	1,512			$	1,691
Accrued compensation and related liabilities			9,527				7,670
Deferred revenue			6,254				4,180
Income taxes payable			2,725				8,620
Accrued restructuring charges—current			1,814				—
Other accrued liabilities			4,567				4,442
Total current liabilities			26,399				26,603
Long-term obligations			1,462				726
Total liabilities			27,861				27,329
Stockholders’ equity:
Preferred stock, $.10 par value, 500 shares authorized, none issued			—				—
Common stock, $0.001 par value, 60,000 shares authorized, 31,390 and 31,283 shares issued, 24,605 and 26,299 shares outstanding at December 31 and September 30, 2002, respectively			31				31
Additional paid-in capital			179,432				178,427
Deferred compensation			(903	)			(626	)
Retained earnings			26,068				30,998
Accumulated other comprehensive loss			(2,053	)			(2,127	)
Less: Cost of treasury stock (6,785 and 4,984 shares at December 31 and September 30, 2002, respectively)			(88,369	)			(80,746	)
Total stockholders’ equity			114,206				125,957
Total liabilities and stockholders’ equity		$	142,067			$	153,286

		Three months ended December 31,
		2002				2001
Revenues		$	21,894			$	25,089
Cost of revenues			4,382				3,477
Gross margin			17,512				21,612
Operating expenses:
Research and development			7,630				7,574
Sales and marketing			8,637				7,991
General and administrative			3,353				3,672
Amortization of goodwill and acquired intangible assets			18				567
Stock-based compensation			83				56
Restructuring and related charges			5,465				3,925
Total operating expenses			25,186				23,785
Operating loss from continuing operations			(7,674	)			(2,173	)
Interest and other income, net			89				207
Loss from continuing operations before income taxes			(7,585	)			(1,966	)
Income tax benefit from continuing operations			(2,655	)			(715	)
Loss from continuing operations			(4,930	)			(1,251	)
Discontinued operations:
Loss from inSilicon, net of income taxes of $170			—				(2,973	)
Net loss		$	(4,930	)		$	(4,224	)
Earnings per share:
Basic and diluted
Loss from continuing operations		$	(0.20	)		$	(0.05	)
Discontinued operations			—				(0.12	)
Net loss		$	(0.20	)		$	(0.17	)
Shares used in earnings per share calculation:
Basic and diluted			24,947				25,208

		Three months ended December 31,
		2002				2001
Cash flows from operating activities:
Net loss		$	(4,930	)		$	(4,224	)
Reconciliation to net cash used in operating activities:
Loss from discontinued operations			—				2,973
Depreciation and amortization			1,979				2,321
Stock-based compensation			83				56
Gain from sale of investment			—				(161	)
Change in operating assets and liabilities:
Accounts receivable			(5,480	)			(5,824	)
Receivables from affiliates			—				348
Other assets			(534	)			229
Prepaid royalties and maintenance			295				(1,466	)
Accounts payable			(179	)			764
Accrued compensation and related liabilities			1,856				3,217
Accrued restructuring charges			2,599				—
Other accrued liabilities			78				32
Deferred revenue			2,074				3,588
Income taxes			(5,910	)			(1,499	)
Net cash provided by (used in) operating activities—continuing operations			(8,069	)			354
Net cash used in operating activities—discontinued operations			—				(3,678	)
Net cash used in operating activities			(8,069	)			(3,324	)
Cash flows from investing activities:
Proceeds from sale of investments			132,824				27,922
Purchases of investments			(117,366	)			(37,547	)
Purchases of property and equipment			(749	)			(392	)
Net cash provided by (used in) investing activities—continuing operations