<ARTICLE> 5 <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-START> JUL-01-1997 <PERIOD-END> SEP-30-1997 <CASH> 1,392,000 <SECURITIES> 703,000 <RECEIVABLES> 1,135,000 <ALLOWANCES> (620,000) <INVENTORY> 1,413,000 <CURRENT-ASSETS> 4,423,000 <PP&E> 3,115,000 <DEPRECIATION> 2,121,000 <TOTAL-ASSETS> 6,090,000 <CURRENT-LIABILITIES> 3,184,000 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 4,000 <COMMON> 449,000 <OTHER-SE> 64,093,000 <TOTAL-LIABILITY-AND-EQUITY> 6,090,000 <SALES> 2,336,000 <TOTAL-REVENUES> 3,970,000 <CGS> 2,798,000 <TOTAL-COSTS> 10,820,000 <OTHER-EXPENSES> (312,000) <LOSS-PROVISION> 0 <INTEREST-EXPENSE> (28,000) <INCOME-PRETAX> (7,190,000) <INCOME-TAX> 0 <INCOME-CONTINUING> (7,190,000) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (7,190,000) <EPS-PRIMARY> (0.16) <EPS-DILUTED> (0.16)