<ARTICLE> 5 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> JUL-31-1999 <PERIOD-END> OCT-31-1999 <CASH> 1,715,000 <SECURITIES> 0 <RECEIVABLES> 15,157,000 <ALLOWANCES> (1,227,000) <INVENTORY> 1,830,000 <CURRENT-ASSETS> 19,107,000 <PP&E> 15,820,000 <DEPRECIATION> (8,683,000) <TOTAL-ASSETS> 32,891,000 <CURRENT-LIABILITIES> 11,891,000 <BONDS> 9,156,000 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 359,000 <OTHER-SE> 12,490,000 <TOTAL-LIABILITY-AND-EQUITY> 32,891,000 <SALES> 0 <TOTAL-REVENUES> 8,789,000 <CGS> 0 <TOTAL-COSTS> 5,680,000 <OTHER-EXPENSES> 2,689,000 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 213,000 <INCOME-PRETAX> 235,000 <INCOME-TAX> 74,000 <INCOME-CONTINUING> 161,000 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 188,000 <EPS-BASIC> 0.05 <EPS-DILUTED> 0.05