<ARTICLE> 5 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> JUL-31-1996 <PERIOD-END> JAN-31-1997 <CASH> $896,000 <SECURITIES> $770,000 <RECEIVABLES> $1,643,000 <ALLOWANCES> 0 <INVENTORY> $2,637,000 <CURRENT-ASSETS> $5,017,000 <PP&E> $722,000 <DEPRECIATION> 0 <TOTAL-ASSETS> $8,376,000 <CURRENT-LIABILITIES> $1,695,000 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> $56,000 <OTHER-SE> $6,625,000 <TOTAL-LIABILITY-AND-EQUITY> $8,376,000 <SALES> $2,930,000 <TOTAL-REVENUES> $2,930,000 <CGS> $1,515,000 <TOTAL-COSTS> $2,694,000 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> $11,000 <INCOME-PRETAX> $236,000 <INCOME-TAX> $68,000 <INCOME-CONTINUING> $168,000 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> $168,000 <EPS-PRIMARY> $.003 <EPS-DILUTED> $.003