<ARTICLE> 5 <MULTIPLIER> 1,000 <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> JAN-01-1996 <PERIOD-END> DEC-31-1996 <CASH> 3,786 <SECURITIES> 42,867 <RECEIVABLES> 2,778 <ALLOWANCES> (350) <INVENTORY> 0 <CURRENT-ASSETS> 49,452 <PP&E> 10,066 <DEPRECIATION> (2,479) <TOTAL-ASSETS> 58,332 <CURRENT-LIABILITIES> 7,455 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 73,754 <OTHER-SE> (24,769)<F1> <TOTAL-LIABILITY-AND-EQUITY> 58,332 <SALES> 15,095 <TOTAL-REVENUES> 15,095 <CGS> 3,194 <TOTAL-COSTS> 3,194 <OTHER-EXPENSES> 29,182<F2> <LOSS-PROVISION> 342 <INTEREST-EXPENSE> 428 <INCOME-PRETAX> 0 <INCOME-TAX> 0 <INCOME-CONTINUING> 0 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (15,938) <EPS-PRIMARY> (0.73) <EPS-DILUTED> (0.73) <FN> <F1>INCLUDES ACCUMULATED DEFICIT OF $20,771, DEFERRED COMPENSATION OF $3,546 AND NOTES RECEIVABLE FROM SHAREHOLDERS OF $452. <F2>OTHER EXPENSES INCLUDE RESEARCH & DEVELOPMENT OF $4,550, SALES & MARKETING OF $20,455 AND GENERAL & ADMINISTRATIVE EXPENSE OF $4,177. </FN>