<ARTICLE> 5 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> OCT-31-1997 <PERIOD-START> NOV-01-1997 <PERIOD-END> JAN-31-1997 <CASH> 2,007,695 <SECURITIES> 0 <RECEIVABLES> 471,604 <ALLOWANCES> 12,000 <INVENTORY> 100,369 <CURRENT-ASSETS> 2,636,826 <PP&E> 1,210,939 <DEPRECIATION> 280,777 <TOTAL-ASSETS> 4,051,370 <CURRENT-LIABILITIES> 1,400,771 <BONDS> 0 <PREFERRED-MANDATORY> 6,532,973 <PREFERRED> 391,087 <COMMON> 524,996 <OTHER-SE> (4,961,901) <TOTAL-LIABILITY-AND-EQUITY> 4,051,370 <SALES> 509,783 <TOTAL-REVENUES> 838,603 <CGS> 423,717 <TOTAL-COSTS> 1,504,668 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 10,341 <INCOME-PRETAX> (676,406) <INCOME-TAX> 0 <INCOME-CONTINUING> (676,406) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (676,406) <EPS-PRIMARY> (.27) <EPS-DILUTED> (.22)