North Carolina		56-1572719
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

4600 Silicon Drive Durham, North Carolina		27703
(Address of principal executive offices)		(Zip Code

				Page No.
PART I.		FINANCIAL INFORMATION
Item 1.		Financial Statements
		Consolidated Balance Sheets at September 29, 2002 (unaudited) and June 30, 2002		3
		Consolidated Statements of Operations for the three months ended September 29, 2002 and September 23, 2001 (unaudited)		4
		Consolidated Statements of Cash Flow for the three months ended September 29, 2002 and September 23, 2001 (unaudited)		5
		Notes to Consolidated Financial Statements (unaudited)		6
Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations		18
Item 3.		Quantitative and Qualitative Disclosures About Market Risk		28
Item 4.		Controls and Procedures		28
PART II.		OTHER INFORMATION
Item 1.		Legal Proceedings		29
Item 6.		Exhibits and Reports on Form 8-K		29
SIGNATURES				30
CERTIFICATIONS				31

		September 29, 2002				June 30, 2002
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	54,253			$	73,744
Short-term investments held to maturity			44,274				32,396
Marketable securities available for sale			2,609				6,008
Accounts receivable, net			42,692				34,592
Interest receivable			3,968				2,083
Inventories, net			15,923				17,966
Deferred income taxes			1,122				1,122
Prepaid expenses and other current assets			4,088				5,994
Total current assets			168,929				173,905
Property and equipment, net			220,536				211,685
Long-term investments held to maturity			65,550				64,225
Deferred income taxes			26,877				27,365
Patent and license rights, net			4,526				4,251
Other assets			20,959				22,764
Total assets		$	507,377			$	504,195
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable, trade		$	12,628			$	13,075
Accrued salaries and wages			4,202				4,010
Other accrued expenses			6,803				4,969
Total current liabilities			23,633				22,054
Long term liabilities:
Other long term liabilities			22				37
Total long term liabilities			22				37
Shareholders’ equity:
Preferred stock, par value $0.01; 3,000 shares authorized at September 29, 2002 and June 30, 2002; none issued and outstanding			—				—
Common stock, par value $0.00125; 200,000 shares authorized; 72,767 and 72,729 shares issued and outstanding at September 29, 2002 and June 30, 2002, respectively			91				90
Additional paid-in-capital			508,548				508,432
Deferred compensation expense			(562	)			(696	)
Accumulated deficit			(21,840	)			(25,722	)
Accumulated other comprehensive loss, net of tax			(2,515	)			—
Total shareholders’ equity			483,722				482,104
Total liabilities and shareholders’ equity		$	507,377			$	504,195

		Three Months Ended
		September 29, 2002			September 23, 2001
Revenue:
Product revenue, net		$	42,154		$	38,578
Contract revenue, net			6,657			4,588
Total revenue			48,811			43,166
Cost of revenue:
Product revenue			25,117			19,912
Contract revenue			4,989			3,350
Total cost of revenue			30,106			23,262
Gross profit			18,705			19,904
Operating expenses:
Research and development			6,564			4,105
Sales, general and administrative			7,825			5,732
Intangible asset amortization			—			2,255
Other expense			69			851
Income from operations			4,247			6,961
Interest income, net			1,400			2,137
Other expense			400			—
Income before income taxes			5,247			9,098
Income tax expense			1,364			2,638
Net income		$	3,883		$	6,460
Earnings per share:
Basic		$	0.05		$	0.09
Diluted		$	0.05		$	0.09
Shares used in per share calculation:
Basic			72,747			72,952
Diluted			74,460			75,642

		Three Months Ended
		September 29, 2002				September 23, 2001
Operating activities:
Net income		$	3,883			$	6,460
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment			9,213				7,355
Loss on disposal of property, equipment and patents			69				851
Amortization of patent rights			45				41
Amortization of intangible assets			—				2,255
Amortization of deferred compensation			134				130
Deferred income taxes			1,371				2,760
Tax benefits associated with stock option exercises			—				862
Changes in operating assets and liabilities:
Accounts and interest receivable			(9,985	)			(4,779	)
Inventories			2,043				(1,720	)
Prepaid expenses and other current assets			1,906				243
Accounts payable, trade			(447	)			(3,861	)
Accrued expenses and other long-term liabilities			2,012				5,599
Net cash provided by operating activities			10,244				16,196
Investing activities:
Purchase of available for sale securities			—				(13,982	)
Purchase of property and equipment			(16,913	)			(10,108	)
Purchase of securities held to maturity			(13,203	)			(30,000	)
Proceeds from maturities of securities held to maturity			—				27,029
Increase in other long-term assets			585				(1,494	)
Capitalized patent costs			(320	)			(168	)
Net cash used in investing activities			(29,851	)			(28,723	)
Financing activities:
Repurchase of common stock			—				(9,996	)
Net proceeds from issuance of common stock			116				541
Net cash provided by (used in) financing activities			116				(9,455	)
Net decrease in cash and cash equivalents			(19,491	)			(21,982	)
Cash and cash equivalents:
Beginning of period			73,744				164,562
End of period		$	54,253			$	142,580
Supplemental disclosure of cash flow information:
Cash paid for income taxes			—			$	2,104