For the quarterly period ended		Commission File Number
June 30, 2002		000-26819

Delaware		91-1712427
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

PART I.    FINANCIAL INFORMATION
ITEM 1.     FINANCIAL STATEMENTS		3
—Consolidated Balance Sheets as of June 30, 2002 and December 31, 2001		3
—Consolidated Statements of Operations for the three and six months ended June 30, 2002 and 2001		4
—Consolidated Statements of Cash Flows for the six months ended June 30, 2002 and 2001		5
—Notes to Consolidated Financial Statements		6
ITEM 2.     MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS		14
ITEM 3.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK		37
PART II.    OTHER INFORMATION
ITEM 2.     CHANGES IN SECURITIES AND USE OF PROCEEDS		38
ITEM 4.     SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS		38
ITEM 6.     EXHIBITS AND REPORTS ON FORM 8-K		38

		June 30, 2002				December 31, 2001
ASSETS
Current assets:
Cash and cash equivalents		$	20,185			$	13,958
Securities available for sale			72,523				99,785
Trade accounts receivable, net			9,260				6,363
Inventories, net			3,049				4,413
Prepaid expenses and other			3,840				4,000
Total current assets			108,857				128,519
Property and equipment, net			7,001				7,383
Goodwill, net			65,729				26,991
Other intangibles, net and other assets			18,332				10,138
Total assets		$	199,919			$	173,031
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	4,965			$	4,032
Accrued expenses and other liabilities			12,332				4,986
Deferred revenue			17,332				15,709
Total current liabilities			34,629				24,727
Stockholders’ equity:
Preferred stock, $0.001 par value:
Authorized shares:  10,000,000
No shares issued and outstanding			—				—
Common stock, $0.001 par value:
Authorized shares:  80,000,000
Shares issued and outstanding:  32,312,103 at June 30, 2002 and 27,123,260 at December 31, 2001			32				27
Additional paid-in capital			264,657				231,533
Deferred stock-based compensation			(711	)			(1,357	)
Accumulated other comprehensive income			229				681
Accumulated deficit			(98,917	)			(82,580	)
Total stockholders’ equity			165,290				148,304
Total liabilities and stockholders’ equity		$	199,919			$	173,031

		Three Months Ended June 30,								Six Months Ended June 30,
		2002				2001				2002				2001
Revenues:
Product		$	12,500			$	13,255			$	23,058			$	26,539
Service			5,348				4,253				10,302				8,071
Total revenues			17,848				17,508				33,360				34,610
Cost of revenues:
Product			4,870				5,425				9,167				10,692
Service			1,551				1,558				3,067				2,934
Total cost of revenues			6,421				6,983				12,234				13,626
Gross margin			11,427				10,525				21,126				20,984
Operating expenses:
Sales and marketing (1)			8,763				7,690				16,201				15,861
Research and development (2)			6,015				4,740				10,683				10,011
General and administrative (3)			2,031				1,865				4,031				3,735
Stock-based compensation			401				2,546				1,014				7,066
Amortization of goodwill			—				1,836				—				3,672
Amortization of other intangible assets acquired			1,219				888				1,940				1,776
Acquired in-process technology			1,179				—				1,179				—
Restructuring charges			4,272				2,900				4,272				2,900
Total operating expenses			23,880				22,465				39,320				45,021
Operating loss			(12,453	)			(11,940	)			(18,194	)			(24,037	)
Interest income, net			766				1,622				1,886				3,323
Loss before income taxes			(11,687	)			(10,318	)			(16,308	)			(20,714	)
Provision for income taxes			16				84				29				168
Net loss		$	(11,703	)		$	(10,402	)		$	(16,337	)		$	(20,882	)
Basic and diluted net loss per share		$	(0.36	)		$	(0.39	)		$	(0.55	)		$	(0.79	)
Shares used in calculation of basic and diluted net loss per share			32,095				26,673				29,580				26,467

		Six Months Ended June 30,
		2002				2001
OPERATING ACTIVITIES:
Net loss		$	(16,337	)		$	(20,882	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization of property and equipment			1,351				1,074
Amortization of goodwill			—				3,672
Amortization of other intangible assets			1,944				1,776
Acquired in-process technology			1,179				—
Amortization of stock-based compensation			1,014				7,066
Provision for bad debt expense			—				511
Non-cash stock based compensation restructuring charges			—				579
Changes in operating assets and liabilities:
Trade accounts receivable, net			(2,546	)			1,391
Inventories, net			2,170				1,894
Prepaid expenses and other			347				(1,037	)
Goodwill, net, other intangibles, net and other assets			3				(42	)