I hope you are not still in the interview waiting for an answer!
Anyway, the long and the short of it is that it runs on the client computer. Like another contributor said it is used to validate the user/clients input without having to do a round trip of posting to the server, validating, and returning the results.
However, you can do a lot with Java that you can't with server side PHP, ASP etc. For instance, you can open windows client side with java, and place the windows in specific locations on the screen. if you want to ensure that a users session does not expire you can have client side java timers that tell the user when the session is about to expire.
Hope you got the job dude!
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