<ARTICLE> 5 <MULTIPLIER> 1,000 <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-START> JAN-01-1997 <PERIOD-END> SEP-30-1997 <CASH> 34,206 <SECURITIES> 60,675 <RECEIVABLES> 18,905 <ALLOWANCES> (588) <INVENTORY> 5,120 <CURRENT-ASSETS> 119,279 <PP&E> 8,203 <DEPRECIATION> (4,081) <TOTAL-ASSETS> 125,968 <CURRENT-LIABILITIES> 21,663 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 155 <OTHER-SE> 104,150 <TOTAL-LIABILITY-AND-EQUITY> 125,968 <SALES> 27,486 <TOTAL-REVENUES> 49,305 <CGS> 16,133 <TOTAL-COSTS> 16,133 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 8 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 8,045 <INCOME-TAX> 966 <INCOME-CONTINUING> 7,079 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 7,079 <EPS-PRIMARY> 0.45 <EPS-DILUTED> 0.45