<ARTICLE> 5 <MULTIPLIER> 1,000 <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-START> JUL-01-1997 <PERIOD-END> SEP-30-1997 <CASH> 2,242 <SECURITIES> 7,929 <RECEIVABLES> 8,061 <ALLOWANCES> 224 <INVENTORY> 3,487 <CURRENT-ASSETS> 22,281 <PP&E> 1,668 <DEPRECIATION> 672 <TOTAL-ASSETS> 23,277 <CURRENT-LIABILITIES> 8,131 <BONDS> 0 <PREFERRED-MANDATORY> 22,147 <PREFERRED> 1 <COMMON> 2 <OTHER-SE> (7,004) <TOTAL-LIABILITY-AND-EQUITY> 23,277 <SALES> 17,935 <TOTAL-REVENUES> 17,935 <CGS> 11,234 <TOTAL-COSTS> 11,234 <OTHER-EXPENSES> 7,317 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> (169) <INCOME-PRETAX> (46) <INCOME-TAX> 30 <INCOME-CONTINUING> (76) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (76) <EPS-PRIMARY> (0.01) <EPS-DILUTED> (0.01)