Washington		91-1144442
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

								Page
Part I.		Financial Information
		Item 1.		Financial Statements (Unaudited)
				a)		Income Statements for the Three Months Ended September 30, 2001 and 2002		1
				b)		Balance Sheets as of June 30, 2002 and September 30, 2002		2
				c)		Cash Flows Statements for the Three Months Ended September 30, 2001 and 2002		3
				d)		Stockholders’ Equity Statements for the Three Months Ended September 30, 2001 and 2002		4
				e)		Notes to Financial Statements		5
		Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations				11
		Item 3.		Quantitative and Qualitative Disclosures About Market Risk				17
		Item 4.		Controls and Procedures				18
Part II.		Other Information
		Item 1.		Legal Proceedings				19
		Item 6.		Exhibits and Reports on Form 8-K				19
Signature								20
Certifications								21

		Three Months Ended Sept. 30
		2001				2002
Revenue		$	6,126			$	7,746
Operating expenses:
Cost of revenue			884				1,199
Research and development			1,013				1,094
Sales and marketing			1,145				1,220
General and administrative			187				183
Total operating expenses			3,229				3,696
Operating income			2,897				4,050
Losses on equity investees and other			(30	)			(22	)
Investment income/(loss)			(980	)			41
Income before income taxes			1,887				4,069
Provision for income taxes			604				1,343
Net income		$	1,283			$	2,726
Earnings per share:
Basic		$	0.24			$	0.51
Diluted		$	0.23			$	0.50
Weighted average shares outstanding:
Basic			5,398				5,369
Diluted			5,567				5,458

		June 30 2002 (1)			Sept. 30 2002
Assets
Current assets:
Cash and equivalents		$	3,016		$	5,338
Short-term investments			35,636			35,137
Total cash and short-term investments			38,652			40,475
Accounts receivable, net of allowance for doubtful accounts of $209 and $218			5,129			4,450
Inventories			673			959
Deferred income taxes			2,112			2,401
Other			2,010			1,758
Total current assets			48,576			50,043
Property and equipment, net			2,268			2,189
Equity and other investments			14,191			13,580
Goodwill			1,426			2,855
Intangible assets, net			243			642
Other long-term assets			942			926
Total assets		$	67,646		$	70,235
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable		$	1,208		$	1,189
Accrued compensation			1,145			851
Income taxes			2,022			3,307
Short-term unearned revenue			5,920			6,841
Other			2,449			1,569
Total current liabilities			12,744			13,757
Long-term unearned revenue			1,823			2,290
Deferred income taxes			398			152
Other long-term liabilities			501			520
Commitments and contingencies
Stockholders’ equity:
Common stock and paid-in capital—shares authorized 12,000; issued and outstanding 5,359 and 5,346			31,647			33,013
Retained earnings, including accumulated other comprehensive income of $583 and $482			20,533			20,503
Total stockholders’ equity			52,180			53,516
Total liabilities and stockholders’ equity		$	67,646		$	70,235

		Three Months Ended Sept. 30
		2001				2002
Operations
Net income		$	1,283			$	2,726
Depreciation, amortization, and other noncash items			282				297
Net recognized losses on investments			1,517				475
Stock option income tax benefits			415				376
Deferred income taxes			(839	)			(611	)
Unearned revenue			2,069				4,093
Recognition of unearned revenue			(1,879	)			(2,743	)
Accounts receivable			69				751
Other current assets			(39	)			(37	)
Other long-term assets			122				28
Other current liabilities			434				797
Other long-term liabilities			(45	)			20
Net cash from operations			3,389				6,172
Financing
Common stock issued			391				539
Common stock repurchased			(1,125	)			(3,497	)
Net cash used for financing			(734	)			(2,958	)
Investing
Additions to property and equipment			(150	)			(160	)
Acquisition of companies, net of cash acquired			—				(870	)
Purchases of investments			(16,020	)			(26,685	)
Maturities of investments			861				3,230
Sales of investments			11,840				23,588
Net cash used for investing			(3,469	)			(897	)
Net change in cash and equivalents			(814	)			2,317
Effect of exchange rates on cash and equivalents			5				5
Cash and equivalents, beginning of period			3,922				3,016
Cash and equivalents, end of period		$	3,113			$	5,338

		Three Months Ended Sept. 30
		2001				2002
Common stock and paid-in capital
Balance, beginning of period		$	28,390			$	31,647
Common stock issued			609				1,333
Common stock repurchased			(118	)			(343	)
Stock option income tax benefits			415				376
Balance, end of period			29,296				33,013
Retained earnings
Balance, beginning of period			18,899				20,533
Net income			1,283				2,726
Other comprehensive income:
Net gains/(losses) on derivative instruments			(51	)			68
Net unrealized investment gains/(losses)			46