<ARTICLE> 5 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> MAR-31-1997 <PERIOD-START> JUL-01-1997 <PERIOD-END> SEP-30-1997 <CASH> 939,000 <SECURITIES> 7,605,000 <RECEIVABLES> 1,736,000 <ALLOWANCES> (61,000) <INVENTORY> 1,333,000 <CURRENT-ASSETS> 11,722,000 <PP&E> 6,994,000 <DEPRECIATION> (4,671,000) <TOTAL-ASSETS> 14,133,000 <CURRENT-LIABILITIES> 4,137,000 <BONDS> 313,000 <PREFERRED-MANDATORY> 0 <PREFERRED> 2,732,000 <COMMON> 60,535,000 <OTHER-SE> (53,584,000) <TOTAL-LIABILITY-AND-EQUITY> 14,133,000 <SALES> 3,288,000 <TOTAL-REVENUES> 3,288,000 <CGS> 2,866,000 <TOTAL-COSTS> 4,406,000 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> (85,000) <INCOME-PRETAX> (1,033,000) <INCOME-TAX> 0 <INCOME-CONTINUING> (1,033,000) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (1,033,000) <EPS-PRIMARY> (0.15) <EPS-DILUTED> (0.15)