Page Number
PART I—FINANCIAL INFORMATION
Condensed Consolidated Statements of Operations		3
Condensed Consolidated Balance Sheets		5
Condensed Consolidated Statements of Cash Flows		6
Notes to Condensed Consolidated Financial Statements		7
Management’s Discussion and Analysis of Financial Condition and Results of Operations		20
Quantitative and Qualitative Disclosures About Market Risk		50
PART II—OTHER INFORMATION
Legal proceedings		II-1
Submission of matters to a vote of security holders		II-1
SIGNATURE		II-2

		Three Months Ended
		June 30, 2002				July 1, 2001
Product revenue		$	165,915			$	224,821
Royalty revenue			45,563				54,464
Total revenue			211,478				279,285
Cost of revenue			148,971				166,942
Gross margin			62,507				112,343
Operating expenses:
Research and development			29,805				34,472
Sales and marketing			30,894				39,964
General and administrative			22,574				28,742
Special charges			4,885				47,709
Purchased in-process research and development			—				13,200
			88,158				164,087
Loss from operations			(25,651	)			(51,744	)
Write-down of equity investments			(17,061	)			—
Interest and other income (expense), net			(3,266	)			651
Loss before income taxes			(45,978	)			(51,093	)
Income tax benefit			(9,393	)			(9,700	)
Loss from continuing operations			(36,585	)			(41,393	)
Gain from disposition of discontinued operations			—				119,327
Income (loss) before cumulative effect of an accounting change			(36,585	)			77,934
Cumulative effect of an accounting change			(94,298	)			—
Net income (loss)		$	(130,883	)		$	77,934

Loss per share from Continuing Operations
Basic		$	(0.23	)		$	(0.27	)
Diluted		$	(0.23	)		$	(0.27	)
Income per share from Discontinued Operations
Basic		$	—			$	0.77
Diluted		$	—			$	0.77
Cumulative effect per share of accounting change
Basic		$	(0.60	)		$	—
Diluted		$	(0.60	)		$	—
Net income (loss) per share
Basic		$	(0.84	)		$	0.50
Diluted		$	(0.84	)		$	0.50
Weighted average common and common equivalent shares:
Basic			156,443				155,220
Diluted			156,443				155,220

		June 30, 2002			March 31, 2002 (1)
		(Unaudited)
Assets
Current assets:
Cash and investments		$	305,825		$	344,433
Accounts receivable, net of allowance for doubtful accounts of $6,886 and $6,233			135,672			149,424
Inventories			110,811			101,638
Deferred income taxes			42,725			42,038
Service inventories			50,186			50,303
Other current assets			39,216			36,842
Total current assets			684,435			724,678
Long-term assets:
Property and equipment, net			74,464			78,528
Goodwill, net			68,648			161,157
Intangible assets, net			84,018			91,209
Other assets			25,187			42,367
Receivable from Maxtor Corporation			95,833			95,833
Total long-term assets			348,150			469,094
		$	1,032,585		$	1,193,772
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		$	101,696		$	65,503
Accrued warranty			40,022			43,210
Short-term debt			2,654			41,363
Other accrued liabilities			138,054			147,059
Total current liabilities			282,426			297,135
Long-term liabilities:
Deferred income taxes			35,233			48,636
Convertible subordinated debt			287,500			287,500
Total long-term liabilities			322,733			336,136
Stockholders’ equity:
Common stock			186,963			190,477
Retained earnings			240,463			370,024
Total stockholders’ equity			427,426			560,501
		$	1,032,585		$	1,193,772

		Three Months Ended,
		June 30, 2002				July 1, 2001
Cash flows from operating activities:
Net income (loss)		$	(130,883	)		$	77,934
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Cumulative effect of an accounting change			94,298				—
Gain on disposition of the HDD group			—				(119,327	)
Purchased in-process research and development			—				13,200
Depreciation			9,606				12,093
Amortization			4,498				10,499
Deferred income taxes			(687	)			7,007
Compensation related to stock incentive plans			798				11,430
Write-down of equity investments			17,061				—
Changes in assets and liabilities:
Accounts receivable			13,752				30,531
Inventories			(9,173	)			13,179
Accounts payable			36,193				398
Income taxes payable			(9,720	)			(3,366	)
Accrued warranty			(3,188	)			(7,973	)
Other assets and liabilities			(16,452	)			(48,128	)
Net cash provided by (used in) operating activities			6,103				(2,523	)
Cash flows from investing activities:
Maturities of marketable securities			—				207
Purchases of equity securities			—				(10,525	)
Acquisition of intangible assets			—				(14,852	)
Purchases of property and equipment			(6,072	)			(13,018	)
Net cash used in investing activities			(6,072	)			(38,188	)
Cash flows from financing activities:
Purchase of treasury stock			—				(18,366	)
Principal payments of short-term debt			(38,709	)			—
Proceeds from issuance of common stock, net			361				31,626
Net cash provided by (used in) financing activities			(38,348	)			13,260
Decrease in cash and cash equivalents			(38,317	)			(27,451	)
Cash and cash equivalents at beginning of period			343,878				397,537
Cash and cash equivalents at end of period		$	305,561			$	370,086
Supplemental disclosure of cash flow information:
Cash paid during the year for:
Interest		$	1,569			$	126
Income taxes		$	18,580			$