Delaware (State of Incorporation)

13-3667696 (I.R.S. Employer Identification Number)

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PART I—FINANCIAL INFORMATION
Item 1.		Financial Statements
		Consolidated Balance Sheets (unaudited) at June 30, 2002 and December 31, 2001		3
		Consolidated Statements of Operations (unaudited) for the three and six months ended June 30, 2002 and 2001		4
		Consolidated Statements of Cash Flows (unaudited) for the three and six months ended June 30, 2002 and 2001		5
		Notes to Unaudited Consolidated Financial Statements		6
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations.		15
Item 3.		Quantitative and Qualitative Disclosure about Market Risk		29
PART II—OTHER INFORMATION
Item 1.		Legal Proceedings		29
Item 2.		Changes in Securities and Use of Proceeds		30
Item 3.		Defaults Upon Senior Securities		30
Item 4.		Submission of Matters to a Vote of Security Holders		30
Item 5.		Other Information		30
Item 6(a).		Exhibits		31
Item 6(b).		Reports on Form 8-K		31
Signatures				32

		June 30, 2002				December 31, 2001
		(unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	8,959			$	8,015
Accounts receivable (net of allowances of $127 in 2002 and $153 in 2001)			4,515				6,002
Inventories			11,543				13,258
Other current assets			1,500				4,426
Total current assets			26,517				31,701
Property, plant and equipment			6,134				6,599
Other assets			812				873
Total assets		$	33,463			$	39,173
LIABILITIES, REDEEMABLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT
Current liabilities:
Notes payable		$	757			$	2,584
Accounts payable			2,348				3,665
Net liabilities of discontinued operations			1,084				1,383
Accrued restructuring costs			1,348				2,038
Other accrued liabilities			11,816				17,333
Total current liabilities			17,353				27,003
Long-term debt			61,964				58,790
Other liabilities			44,958				41,740
Deferred income taxes			1,213				1,213
Net liabilities of discontinued operations			3,313				3,874
Total liabilities			128,801				132,620
Commitments and contingencies (Note 8)
Mandatorily redeemable nonconvertible preferred stock, $1,000 liquidation value:
Authorized: 69,970 shares in 2002 and in 2001; Issued and outstanding—none in 2002 and in 2001			—				—
Mandatorily redeemable preferred stock, $2,000 liquidation value:
Authorized: 21,859 shares in 2002 and in 2001; Issued and outstanding—13,951 shares in 2002; 15,025 in 2001			27,902				30,050
Convertible preferred stock, $2,000 liquidation value:
Authorized: 10,000 shares in 2002 and in 2001; Issued and outstanding—none in 2002; 51 shares in 2001			—				102
Stockholders’ deficit:
Preferred stock, $1.00 par value:
Authorized: 898,171 shares in 2002 and in 2001; Issued and outstanding—none in 2002 and in 2001			—				—
Common stock, $.01 par value:
Class A:
Authorized: 175,000,000 shares in 2002 and in 2001; Issued and outstanding—62,552,996 shares in 2002; 61,652,996 in 2001			626				616
Class C:
Authorized: 50,000,000 shares in 2002 and in 2001; Issued and outstanding—none in 2002 and in 2001			—				—
Other additional capital			430,401				428,161
Notes receivable from stockholders			(4,642	)			(4,642	)
Accumulated deficit			(512,002	)			(510,023	)
Accumulated other comprehensive income			(37,623	)			(37,711	)
Total stockholders' deficit			(123,240	)			(123,599	)
Total liabilities, redeemable preferred stock and stockholders' deficit		$	33,463			$	39,173

		For the Three Months Ended June 30,								For the Six Months Ended June 30,
		2002				2001				2002				2001
		(unaudited)
Royalty income		$	1,310			$	2,181			$	2,525			$	4,517
Product revenue			8,004				8,129				16,775				17,954
Total revenue			9,314				10,310				19,300				22,471
Intellectual property costs			189				213				421				386
Cost of product sales			4,575				5,543				9,795				12,583
Research, development and engineering			639				1,700				1,320				3,474
Selling and administrative			2,329				3,299				4,961				7,745
Restructuring charges			—				808				—				808
Total costs and operating expenses			7,732				11,563				16,497				24,996
Operating income (loss)			1,582				(1,253	)			2,803				(2,525	)
Interest expense			2,036				1,794				4,159				3,532
Amortization of debt financing costs			14				87				431				175
Interest income			(116	)			(91	)			(278	)			(238	)
Other (income) expense, net			195				(46	)			192				(123	)
Loss from continuing operations before income taxes			(547	)			(2,997	)			(1,701	)			(5,871	)
Provision for income taxes			124				219				278				466
Loss from continuing operations			(671	)			(3,216	)			(1,979	)			(6,337	)
Loss on disposal of discontinued operations (net of taxes of none in 2001)			—				(10,338	)			—				(10,338	)
Loss from discontinued operations (net of taxes of none in 2001)			—				(3,759	)			—				(7,294	)
Net loss			(671	)			(17,313	)			(1,979	)			(23,969	)
Benefit from extinguishment of mandatorily redeemable preferred stock			1,019				1,505				2,123				2,337
Net income (loss) applicable to common stockholders			348				(15,808	)			(144	)			(21,632	)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments			97				1				88				(134	)
Comprehensive income (loss)		$	445			$	(15,807	)		$	232