<ARTICLE> 5 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> MAR-31-1998 <PERIOD-START> OCT-01-1997 <PERIOD-END> DEC-31-1997 <CASH> 1,222,000 <SECURITIES> 5,935,000 <RECEIVABLES> 2,111,000 <ALLOWANCES> (66,000) <INVENTORY> 1,469,000 <CURRENT-ASSETS> 10,873,000 <PP&E> 7,119,000 <DEPRECIATION> (4,796,000) <TOTAL-ASSETS> 13,281,000 <CURRENT-LIABILITIES> 4,250,000 <BONDS> 275,000 <PREFERRED-MANDATORY> 0 <PREFERRED> 3,516,0000 <COMMON> 59,905,000 <OTHER-SE> (54,665,000) <TOTAL-LIABILITY-AND-EQUITY> 13,281,000 <SALES> 3,030,000 <TOTAL-REVENUES> 3,030,000 <CGS> 2,600,000 <TOTAL-COSTS> 4,117,000 <OTHER-EXPENSES> (9,000) <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 82,000 <INCOME-PRETAX> (996,000) <INCOME-TAX> 0 <INCOME-CONTINUING> (996,000) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (996,000) <EPS-PRIMARY> (0.09) <EPS-DILUTED> (0.09)