<ARTICLE> 5 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> MAR-31-1999 <PERIOD-END> SEP-30-1998 <CASH> $ 113 <SECURITIES> 4,253 <RECEIVABLES> 5,116 <ALLOWANCES> (398) <INVENTORY> 8,245 <CURRENT-ASSETS> $ 17,734<F1> <PP&E> 26,544 <DEPRECIATION> (13,975) <TOTAL-ASSETS> $ 33,738<F2> <CURRENT-LIABILITIES> $ 5,597 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 53,041 <OTHER-SE> (32,966) <TOTAL-LIABILITY-AND-EQUITY> $ 33,738 <SALES> $ 8,328 <TOTAL-REVENUES> 8,328 <CGS> 6,238 <TOTAL-COSTS> 6,238 <OTHER-EXPENSES> 2,639<F3> <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 221 <INCOME-PRETAX> $ (770) <INCOME-TAX> 0 <INCOME-CONTINUING> 0 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> $ (770) <EPS-PRIMARY> $ (0.08) <EPS-DILUTED> $ (0.08) <FN> <F1>Includes - Other assets - $397K. <F2>Includes - Restricted cash - $3,038K; Other long term assets $397K. <F3>Includes - Research and development - $774K; Selling, marketing, and administrative - $1,926K; Interest (income) - ($83K); and Other (income)/expense - $22K. </FN>