<ARTICLE> 5 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> MAR-31-1998 <PERIOD-END> DEC-31-1997 <CASH> 0 <SECURITIES> 5,357 <RECEIVABLES> 4,725 <ALLOWANCES> (424) <INVENTORY> 9,454 <CURRENT-ASSETS> 20,347<F1> <PP&E> 25,312 <DEPRECIATION> (11,881) <TOTAL-ASSETS> 37,425<F2> <CURRENT-LIABILITIES> 5,872 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 52,950 <OTHER-SE> (29,777) <TOTAL-LIABILITY-AND-EQUITY> 23,173 <SALES> 7,702 <TOTAL-REVENUES> 7,852<F3> <CGS> 5,972 <TOTAL-COSTS> 5,972 <OTHER-EXPENSES> 8,595<F4> <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 234 <INCOME-PRETAX> (885) <INCOME-TAX> 0 <INCOME-CONTINUING> 0 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (885) <EPS-PRIMARY> (0.09)<F5> <EPS-DILUTED> (0.09) <FN> <F1>Includes Other assets - $409K. <F3>Includes Technology related revenue - $150K. <F2>Includes Restricted cash - $3,327; and Other long term assets - $409K. <F4>Includes Research and development - $719K; Selling, marketing and administrative - $1,904K; Interest (income) - $91K; and Other (income)/ expense - $1K. <F5>New basic (loss) income per share. </FN>