<ARTICLE> 5 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> MAR-31-1999 <PERIOD-END> DEC-31-1998 <CASH> $ 389 <SECURITIES> $ 3,659 <RECEIVABLES> $ 4,851 <ALLOWANCES> $ (297) <INVENTORY> $ 8,090 <CURRENT-ASSETS> $ 17,346<F1> <PP&E> $ 26,745 <DEPRECIATION> $ (14,716) <TOTAL-ASSETS> $ 33,106<F2> <CURRENT-LIABILITIES> $ 5,587 <BONDS> $ 0 <PREFERRED-MANDATORY> $ 0 <PREFERRED> $ 0 <COMMON> $ 53,259 <OTHER-SE> $ (33,617) <TOTAL-LIABILITY-AND-EQUITY> $ 33,106 <SALES> $ 8,529 <TOTAL-REVENUES> $ 8,529 <CGS> $ 6,072 <TOTAL-COSTS> $ 6,072 <OTHER-EXPENSES> $ 2,877<F3> <LOSS-PROVISION> $ 0 <INTEREST-EXPENSE> $ 206 <INCOME-PRETAX> $ (626) <INCOME-TAX> $ 0 <INCOME-CONTINUING> $ 0 <DISCONTINUED> $ 0 <EXTRAORDINARY> $ 0 <CHANGES> $ 0 <NET-INCOME> $ (626) <EPS-PRIMARY> $ (0.08) <EPS-DILUTED> $ (0.08) <FN> <F1>Includes - Other assets $654K. <F2>Includes - Restricted cash $3,260K; Other long term assets $471K. <F3>Includes - Research and development $1,004K; Selling, marketing and administrative $1,889; Interest (income) $(59K); and Other income (expense) $43K. </FN>