<ARTICLE> 5 <MULTIPLIER> 1,000 <PERIOD-TYPE> 6-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> JUN-30-1998 <CASH> 26,072 <SECURITIES> 59,732 <RECEIVABLES> 21,506 <ALLOWANCES> (1,202) <INVENTORY> 5,886 <CURRENT-ASSETS> 116,658 <PP&E> 8,770 <DEPRECIATION> (4,806) <TOTAL-ASSETS> 124,434 <CURRENT-LIABILITIES> 24,440 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 155 <OTHER-SE> 99,839 <TOTAL-LIABILITY-AND-EQUITY> 124,434 <SALES> 16,995 <TOTAL-REVENUES> 55,973 <CGS> 13,307 <TOTAL-COSTS> 13,307 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 387 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> (7,404) <INCOME-TAX> (1,037) <INCOME-CONTINUING> (6,367) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (6,367) <EPS-PRIMARY> (0.42) <EPS-DILUTED> (0.42)<F1> <FN> <F1>For Purposes of This Exhibit, Diluted means Basic. </FN>