California		77-0270079
(State or other jurisdiction of incorporation)		(I.R.S. Employer Identification No.)

TITLE OF EACH CLASS Common Stock, no par value

OUTSTANDING AT SEPTEMBER 30, 2002 67,359,643 Shares

				Page
PART I.    FINANCIAL INFORMATION				3
ITEM 1.		Financial Statements		3
ITEM 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations		11
ITEM 3.		Quantitative and Qualitative Disclosures About Market Risk		21
ITEM 4.		Controls and Procedures		22
PART II.    OTHER INFORMATION				22
ITEM 1.		Legal Proceedings		22
ITEM 2.		Changes in Securities and Use of Proceeds		22
ITEM 3.		Defaults Upon Senior Securities		22
ITEM 4.		Submission of Matters to a Vote of Security Holders		22
ITEM 5.		Other Information		22
ITEM 6.		Exhibits and Reports on Form 8-K		22
SIGNATURES				23

		Condensed Consolidated Balance Sheets as of September 30, 2002 (unaudited) and December 31, 2001		4
		Condensed Consolidated Statements of Operations for the three and nine-month periods ended September 30, 2002 and 2001 (unaudited)		5
		Condensed Consolidated Statements of Cash Flows for the nine-month periods ended September 30, 2002 and 2001 (unaudited)		6
		Notes to Condensed Consolidated Financial Statements		7

		September 30, 2002				December 31, 2001
		(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents		$	159,399			$	60,908
Short term investments			74,599				166,271
Accounts receivable, net			13,853				15,642
Inventories, net			6,436				5,489
Deferred income taxes			13,743				20,364
Prepaid expenses and other current assets			2,765				3,384
Total current assets			270,795				272,058
Property and Equipment, net			6,104				6,616
Goodwill			186,191				189,312
Purchased Intangibles, net			33,727				48,014
Other Assets			394				351
		$	497,211			$	516,351
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Accounts payable		$	6,642			$	7,400
Accrued restructuring			1,685				—
Accrued compensation and related benefits			4,363				3,854
Other accrued liabilities			6,161				11,263
Deferred revenue			14,948				15,122
Income taxes payable			3,937				9,934
Total current liabilities			37,736				47,573
Deferred Tax Liability			13,169				17,625
Total liabilities			50,905				65,198
Shareholders’ Equity:
Common stock			463,995				466,857
Deferred stock compensation			(605	)			(2,881	)
Accumulated other comprehensive income			127				194
Accumulated deficit			(17,211	)			(13,017	)
Total shareholders’ equity			446,306				451,153
		$	497,211			$	516,351

		Three Months Ended September 30,								Nine Months Ended September 30,
		2002				2001				2002				2001
Revenue:
Product		$	19,349			$	21,362			$	60,723			$	62,426
License and service			5,062				6,399				19,534				16,466
Total revenue			24,411				27,761				80,257				78,892
Cost of revenue:
Product, excluding amortization of stock-based compensation of $9, $10, $35 and $46, respectively			6,198				6,081				19,603				17,856
License and service			1,210				423				3,196				955
Total cost of revenue			7,408				6,504				22,799				18,811
Gross margin			17,003				21,257				57,458				60,081
Operating expenses:
Research and development, excluding amortization of stock-based compensation of $62, $252, $246 and $552, respectively			4,185				5,103				13,728				15,576
Sales and marketing, excluding amortization of stock-based compensation of $218, $291, $746 and $1,344, respectively			10,363				7,973				33,314				22,352
General and administrative, excluding amortization of stock-based compensation of $39, $75, $133 and $538, respectively			3,183				2,472				8,499				6,764
Amortization of goodwill and intangibles			2,578				10,919				7,734				31,858
Restructuring charges			—				—				3,969				—
Stock-based compensation			328				628				1,160				2,480
Total operating expenses			20,637				27,095				68,404				79,030
Loss from operations			(3,634	)			(5,838	)			(10,946	)			(18,949	)
Interest income and other expense, net			1,334				2,072				4,714				7,592
Loss before income taxes			(2,300	)			(3,766	)			(6,232	)			(11,357	)
Benefit from (provision for) income taxes			775				(1,438	)			2,038				(4,746	)
Net loss		$	(1,525	)		$	(5,204	)		$	(4,194	)		$	(16,103	)
Net loss per share:
Basic and Diluted		$	(0.02	)		$	(0.08	)		$	(0.06	)		$	(0.25	)
Shares used in computing net loss per share:
Basic and Diluted			67,289				65,232				67,052				63,851

		Nine Months Ended September 30,
		2002				2001
Cash flows from operating activities:
Net loss		$	(4,194	)		$	(16,103	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization			10,086				32,778
Provision for (recovery of) doubtful accounts			(105	)