<ARTICLE> 5 <LEGEND> The Schedule contains summary financial information extracted from the Consolidated Balance Sheets, Statements of Consolidated Income and Consolidated Statement of Cash Flows and is qualified in its entirety by reference to such financial statements. </LEGEND> <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> AUG-31-1998 <PERIOD-END> MAY-31-1998 <CASH> 1,674,000 <SECURITIES> 0 <RECEIVABLES> 600,000 <ALLOWANCES> 3,447,000 <INVENTORY> 19,000 <CURRENT-ASSETS> 0 <PP&E> 3,116,000 <DEPRECIATION> 1,739,000 <TOTAL-ASSETS> 7,770,000 <CURRENT-LIABILITIES> 0 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 450,000 <COMMON> 15,000 <OTHER-SE> 3,263,000 <TOTAL-LIABILITY-AND-EQUITY> 7,770,000 <SALES> 1,630,000 <TOTAL-REVENUES> 5,013,000 <CGS> 909,000 <TOTAL-COSTS> 3,420,000 <OTHER-EXPENSES> 1,268,000 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 253,000 <INCOME-PRETAX> 72,000 <INCOME-TAX> 0 <INCOME-CONTINUING> 72,000 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 72,000 <EPS-PRIMARY> (0.13) <EPS-DILUTED> (0.13)