Delaware		77-0454924
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification Number)

		Page
Part I: Financial Information		1
Item 1: Financial Statements		1
Unaudited Condensed Consolidated Balance Sheets at June 30, 2002 and March 31, 2002		1
Unaudited Condensed Consolidated Statements of Operations for the Three Months Ended June 30, 2002 and 2001		2
Unaudited Condensed Consolidated Statements of Cash Flows for the Three Months Ended June 30, 2002 and 2001		3
Notes to Unaudited Condensed Consolidated Financial Statements		4
Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations		8
Item 3: Quantitative and Qualitative Disclosures About Market Risk		24
Part II: Other Information		25
Item 1: Legal Proceedings		25
Item 5: Other Information		25
Item 6: Exhibits and Reports on Form 8-K		25
Signatures		27
Exhibit Index		28

		June 30, 2002				March 31, 2002
		(unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	90,289			$	78,478
Short-term investments			—				13,468
Accounts receivable, net			15,923				17,601
Prepaid expenses and other current assets			1,686				1,327
Total current assets			107,898				110,874
Property and equipment, net			7,396				7,252
Other assets			1,976				1,583
Total assets		$	117,270			$	119,709
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	2,694			$	1,777
Accrued expenses			5,974				9,441
Deferred revenue			12,404				15,617
Total current liabilities			21,072				26,835
Other long-term liabilities			120				130
Total liabilities			21,192				26,965
Commitments and contingency
Stockholders’ equity:
Preferred stock, $.0001 par value; 5,000,000 shares authorized and no shares issued and outstanding			—				—
Common stock, $.0001 par value; 150,000,000 shares authorized and 30,443,814 and 30,239,786 shares issued and outstanding at June 30, 2002 and March 31, 2002, respectively			3				3
Additional paid-in capital			224,772				223,450
Deferred stock-based compensation			(4,945	)			(7,161	)
Notes receivable from stockholders			(2,342	)			(1,936	)
Accumulated other comprehensive income			144				—
Accumulated deficit			(121,554	)			(121,612	)
Total stockholders’ equity			96,078				92,744
Total liabilities and stockholders’ equity		$	117,270			$	109,709

		Three Months Ended June 30,
		2002				2001
Revenue:
Licenses		$	13,377			$	5,369
Services			4,746				1,237
Total revenue			18,123				6,606
Cost of revenue			2,793				1,779
Gross profit			15,330				4,827
Operating expenses:
Research and development			5,337				4,629
Sales and marketing			6,037				5,348
General and administrative			2,225				1,527
Amortization of stock-based compensation*			1,901				1,099
Total operating expenses			15,500				12,603
Operating loss			(170	)			(7,776	)
Interest income (expense):
Interest income			433				43
Interest expense			(2	)			(44	)
Interest income (expense), net			431				(1	)
Net income (loss) before income taxes			261				(7,777	)
Income taxes			(203	)			(20	)
Net income (loss)		$	58			$	(7,797	)
Net income (loss) per common share:
Basic		$	0.00			$	(0.76	)
Diluted		$	0.00			$	(0.76	)
Weighted average shares:
Basic			29,828				10,251
Diluted			32,802				10,251
*    Components of stock-based compensation amortization are as follows:
Cost of revenue		$	20			$	10
Research and development			399				240
Sales and marketing			758				261
General and administrative			724				588
		$	1,901			$	1,099

		Three Months Ended June 30,
		2002				2001
Cash flows from operating activities:
Net income (loss)		$	58			$	(7,797	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			1,198				1,061
Provision for doubtful accounts			300				—
Interest income on note receivable from stockholders			(68	)			(2	)
Amortization of stock-based compensation			1,901				1,099
Change in operating assets and liabilities:
Accounts receivable			1,378				900
Prepaid expenses and other current assets			(359	)			(84	)
Accounts payable			917				64
Accrued expenses			(3,467	)			10
Deferred revenue			(3,213	)			2,007
Other long-term liabilities			(10	)			9
Net cash used in operating activities			(1,365	)			(2,733	)
Cash flows from investing activities:
Purchase of property and equipment			(1,342	)			(771	)
Proceeds from the sale of short-term investments			13,468				—
Other assets			(393	)			83
Net cash provided by (used in) investing activities			11,733				(688	)
Cash flows from financing activities:
Proceeds from issuance of preferred stock			—				5
Proceeds from issuance of common stock			1,299				60
Repurchase of subsidiary stock			—				(402	)
Repurchase of common stock			—				(13	)
Repayment of notes payable to bank			—				(332	)
Net cash provided by (used in) financing activities			1,299				(682	)