Delaware		87-0616516
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

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PART I		FINANCIAL INFORMATION		1
Item 1.		Financial Statements		1
		Condensed Consolidated Balance Sheets as of June 30, 2002 and December 31, 2001		1
		Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, 2002 and 2001		2
		Condensed Consolidated Statements of Stockholders’ Equity (Deficit) for the six months ended June 30, 2002		3
		Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2002 and 2001		4
		Notes to Condensed Consolidated Financial Statements		5
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations		12
Item 3.		Quantitative and Qualitative Disclosure about Market Risk		32
PART II		OTHER INFORMATION		32
Item 1.		Legal Proceedings		32
Item 2.		Changes in Securities and Use of Proceeds		32
Item 3.		Defaults upon Senior Securities		33
Item 4.		Submission of Matters to a Vote of Security Holders		34
Item 5.		Other Information		35
Item 6.		Exhibits and Reports on Form 8-K		35
Signatures				37

		June 30, 2002				December 31, 2001
ASSETS
Current assets:
Cash and cash equivalents		$	69,609,000			$	1,023,000
Accounts receivable, net of allowances of $744,000 and $750,000, respectively			8,648,000				7,288,000
Prepaid expenses and other current assets			917,000				330,000
Total current assets			79,174,000				8,641,000
Property and equipment, net			3,026,000				2,547,000
Intangible assets, net			254,000				1,669,000
Other assets			1,093,000				88,000
Total assets		$	83,547,000			$	12,945,000
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Borrowings under financing agreement		$	—			$	136,000
Convertible note payable and accrued interest to majority stockholder			—				3,064,000
Current portion of capital lease obligations			711,000				513,000
Current portion of note payable			233,000				292,000
Accounts payable			3,328,000				1,489,000
Accrued salaries and benefits			2,041,000				1,637,000
Other accrued expenses			2,867,000				2,258,000
Deferred revenue			8,798,000				7,323,000
Total current liabilities			17,978,000				16,712,000
Capital lease obligations, net of current portion			915,000				827,000
Note payable, net of current portion			—				73,000
Deferred revenue non-current			2,206,000				1,077,000
Total liabilities			21,099,000				18,689,000
Commitments and contingencies (Notes 6 and 8)
Stockholders’ equity (deficit):
Preferred stock, $0.0001 par value; 5,000,000 and 5,044,445 shares authorized, respectively
Series A convertible preferred stock; none and 2,111,112 shares designated and outstanding, respectively (liquidation preference of $9,500,000 as of December 31, 2001)			—				9,500,000
Common stock, $0.0001 par value; 100,000,000 and 50,000,000 shares authorized, respectively; 19,537,869 and 9,206,958 shares outstanding, respectively			2,000				1,000
Class B non-voting common stock, $0.0001 par value; 258,064 shares authorized and outstanding at June 30, 2002			—				—
Additional paid-in capital			91,006,000				10,454,000
Deferred compensation			(3,652,000	)			(2,267,000	)
Accumulated other comprehensive loss			(131,000	)			(3,000	)
Accumulated deficit			(24,777,000	)			(23,429,000	)
Total stockholders’ equity (deficit)			62,448,000				(5,744,000	)
Total liabilities and stockholders’ equity (deficit)		$	83,547,000			$	12,945,000

		Three Months Ended June 30,								Six Months Ended June 30,
		2002				2001				2002				2001
Revenue:
Software		$	8,453,000			$	5,611,000			$	15,734,000			$	8,239,000
Services			8,751,000				2,860,000				13,032,000				6,676,000
Total revenue			17,204,000				8,471,000				28,766,000				14,915,000
Cost of revenue:
Software (inclusive of amortization of acquired intellectual property of $286,000, $912,000, $1,399,000 and $1,160,000, respectively)			609,000				1,232,000				1,874,000				1,683,000
Services			3,608,000				481,000				4,420,000				2,251,000
Total cost of revenue			4,217,000				1,713,000				6,294,000				3,934,000
Gross profit			12,987,000				6,758,000				22,472,000				10,981,000
Operating expenses:
Sales and marketing (exclusive of stock-based compensation of $427,000, $132,000, $727,000 and $260,000, respectively)			6,720,000				4,224,000				12,268,000				8,132,000
Research and development (exclusive of stock-based compensation of $76,000, $24,000, $129,000 and $47,000, respectively)			3,746,000				2,584,000				7,257,000				4,084,000
General and administrative (exclusive of stock-based compensation of $260,000, $81,000, $444,000 and $160,000, respectively)			1,764,000				938,000				3,200,000				1,900,000
Stock-based compensation			763,000				237,000				1,300,000				467,000
Amortization of intangible assets			—				108,000				25,000				216,000
Total operating expenses			12,993,000				8,091,000				24,050,000				14,799,000
Loss from operations			(6,000	)			(1,333,000	)			(1,578,000	)			(3,818,000	)
Other income (expense):
Interest expense			(61,000	)			(199,000	)			(323,000	)			(296,000	)
Other income, net			786,000				5,000				796,000				16,000
Other income (expense), net			725,000				(194,000	)			473,000				(280,000	)
Income (loss) before income taxes			719,000				(1,527,000	)			(1,105,000	)			(4,098,000	)
Provision for income taxes			(243,000	)			—				(243,000	)			—
Net income (loss)		$	476,000			$	(1,527,000	)		$	(1,348,000	)		$	(4,098,000	)
Dividends related to preferred shares		$	(581,000	)		$	—			$	(13,781,000	)		$	—
Net loss attributable to common stockholders		$	(105,000	)		$	(1,527,000	)		$	(15,129,000	)		$	(4,098,000	)