Delaware		77-0521878
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

Class		Outstanding at August 9, 2002
Common Stock, $0.001 par value		48,803,489

PART I		FINANCIAL INFORMATION
Item 1.		Financial Statements
		Consolidated Balance Sheets as of June 30, 2002 and December 31, 2001 (unaudited)		3
		Consolidated Statements of Operations and Comprehensive Income for the Three and Six Month Periods Ended June 30, 2002 and 2001 (unaudited)		4
		Consolidated Statements of Cash Flows for the Six Month Periods Ended June 30, 2002 and 2001 (unaudited)		5
		Notes to Consolidated Financial Statements (unaudited)		6
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations		10
Item 3.		Quantitative and Qualitative Disclosures about Market Risk		19
PART II		OTHER INFORMATION
Item 1.		Legal Proceedings		20
Item 2.		Use of Proceeds		20
Item 3.		Defaults Upon Senior Securities		20
Item 4.		Submission of Matters to a Vote of Security Holders		20
Item 5.		Other Information		20
Item 6.		Exhibits and Reports on Form 8-K		20
Signatures				23

		June 30, 2002				December 31, 2001
ASSETS
Current assets:
Cash and cash equivalents		$	34,274			$	54,522
Short-term investments			14,972				—
Accounts receivable, (net of allowance for doubtful accounts of $1,323 and $1,701 at June 30, 2002 and December 31, 2001)			31,350				43,275
Inventories, net			34,413				30,009
Deferred tax asset, current portion			4,617				4,857
Other current assets			3,549				2,879
Total current assets			123,175				135,542
Property and equipment, net			9,121				8,687
Deferred tax asset, net of current portion			13,367				14,300
Other assets			2,757				1,060
Intangible assets			17,077				17,493
Total assets		$	165,497			$	177,082
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	19,977			$	29,694
Accrued compensation			1,423				2,401
Other accrued liabilities			1,904				3,202
Deferred revenue			3,467				4,550
Income taxes payable			1,659				5,219
Total current liabilities			28,430				45,066
Stockholders’ equity:
Common stock			49				49
Additional paid in capital			72,367				71,929
Unearned stock-based compensation			(31	)			(71	)
Accumulated other comprehensive loss			(124	)			(73	)
Retained earnings			64,806				60,182
Total stockholders’ equity			137,067				132,016
Total liabilities and stockholders’ equity		$	165,497			$	177,082

		Three Months Ended June 30,							Six Months Ended June 30,
		2002				2001			2002				2001
Net revenue		$	49,217			$	60,103		$	104,218			$	107,912
Cost of net revenue			32,961				41,747			69,171				74,222
Gross profit			16,256				18,356			35,047				33,690
Operating expenses:
Sales and marketing			8,338				6,045			15,631				12,028
General and administrative			6,625				4,892			12,098				9,757
Restructuring charges			—				—			—				352
Amortization of intangible assets			127				350			254				700
Total operating expenses			15,090				11,287			27,983				22,837
Income from operations			1,166				7,069			7,064				10,853
Interest and other income, net			490				470			708				977
Income before income taxes			1,656				7,539			7,772				11,830
Income tax provision			671				3,210			3,148				5,028
Net income			985				4,329			4,624				6,802
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment			(57	)			8			(68	)			19
Unrealized gain on investments			17				—			17				—
Comprehensive income		$	945			$	4,337		$	4,573			$	6,821
Net income per share—basic		$	0.02			$	0.09		$	0.10			$	0.14
Weighted average shares—basic			48,624				48,240			48,606				48,225
Net income per share—diluted		$	0.02			$	0.09		$	0.09			$	0.14
Weighted average shares—diluted			49,722				48,358			49,970				48,345

		Six months Ended June 30,
		2002				2001
Cash flows from operating activities:
Net income		$	4,624			$	6,802
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization			2,446				2,317
Provision for doubtful accounts			(103	)			100
Provision for excess and obsolete inventories			1,664				954
Deferred tax provision			608				612
Amortization of stock-based compensation			40				87
Non-cash gain on disposition of assets			(93	)			—
Forgiveness of loans to officers			82				41
Changes in operating assets and liabilities:
Accounts receivable			12,028				921
Inventories			(6,068	)			8,858
Other current assets			(449	)			428
Accounts payable			(9,717	)			(3,505	)
Accrued compensation			(978	)			(834	)
Deferred revenue			(1,083	)			—
Other accrued liabilities			(1,197	)			(447	)
Income taxes payable			(2,827	)			3,821
Net cash (used in) provided by operating activities			(1,023	)			20,155
Cash flows from investing activities:
Acquisition of property and equipment			(2,634	)