California		77-0368779
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

PART I.		FINANCIAL INFORMATION		PAGE NO.
Item 1.		Financial Statements
		Condensed Consolidated Balance Sheets as of June 30, 2002 and December 31, 2001		3
		Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2002 and 2001		4
		Condensed Consolidated Statements of Cash Flows for the three and six months ended June 30, 2002 and 2001		5
		Notes to Condensed Consolidated Financial Statements		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		25
PART II.		OTHER INFORMATION
Item 4.		Submission of Matters to a Vote of Security Holders		26
Item 6.		Exhibits and Reports on Form 8-K		26
SIGNATURES				27

		June 30, 2002				December 31, 2001
		(unaudited)
Assets:
Current assets:
Cash and cash equivalents		$	12,904			$	16,855
Short-term investments			36,297				31,018
Accounts receivable, net			6,279				7,286
Other current assets			787				895
Total current assets			56,267				56,054
Property and equipment, net			3,341				3,283
Other assets			912				568
Total assets		$	60,520			$	59,905
Liabilities and Shareholders’ Equity:
Current liabilities:
Accounts payable and accrued liabilities		$	3,017			$	2,977
Accrued compensation			1,790				2,138
Deferred revenue			11,256				10,992
Current portion of long-term debt			37				71
Total current liabilities			16,100				16,178
Commitments
Shareholders’ equity:
Common stock			54,706				54,109
Additional paid-in capital			3,664				3,694
Notes receivable from shareholders			(294	)			(294	)
Deferred stock-based compensation			(1,079	)			(1,501	)
Accumulated deficit			(12,477	)			(12,503	)
Accumulated other comprehensive income (loss)			(100	)			222
Total shareholders’ equity			44,420				43,727
Total liabilities and shareholders’ equity		$	60,520			$	59,905

		Three Months Ended June 30,								Six Months Ended June 30,
		2002				2001				2002				2001
Revenue:
License		$	6,498			$	8,287			$	12,704			$	17,166
Maintenance			4,710				4,188				9,327				7,909
Total revenue			11,208				12,475				22,031				25,075
Cost of revenue:
Cost of license			70				55				109				98
Cost of maintenance			456				491				917				950
Total cost of revenue			526				546				1,026				1,048
Gross profit			10,682				11,929				21,005				24,027
Operating expenses:
Research and development			4,489				4,943				8,974				9,631
Sales and marketing			4,997				5,651				9,733				11,177
General and administrative			1,210				1,391				2,296				2,796
Stock-based compensation (1)			203				270				392				545
Total operating expenses			10,899				12,255				21,395				24,149
Loss from operations			(217	)			(326	)			(390	)			(122	)
Other income, net			249				504				527				1,140
Income before income taxes			32				178				137				1,018
Provision for income tax			95				80				111				164
Net income (loss)		$	(63	)		$	98			$	26			$	854
Basic earnings per share:
Basic net income (loss) per share		$	—			$	—			$	—			$	0.04
Shares used in per share calculation			25,157				24,306				25,069				24,129
Diluted earnings per share:
Diluted net income (loss) per share		$	—			$	—			$	—			$	0.03
Shares used in per share calculation			25,157				27,674				26,750				27,526

		Three Months Ended June 30,						Six Months Ended June 30,
		2002			2001			2002			2001
Cost of maintenance		$	6		$	9		$	12		$	18
Research and development			76			131			137			264
Sales and marketing			60			120			121			243
General and administrative			61			10			122			20
Total		$	203		$	270		$	392		$	545

		Six Months Ended June 30,
		2002				2001
Operating activities
Net income		$	26			$	854
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			942