<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> 43,378 <SECURITIES> 91,199 <RECEIVABLES> 12,308 <ALLOWANCES> 418 <INVENTORY> 5,480 <CURRENT-ASSETS> 153,113 <PP&E> 4,470 <DEPRECIATION> 2,122 <TOTAL-ASSETS> 162,736 <CURRENT-LIABILITIES> 9,734 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 13 <OTHER-SE> 152,989 <TOTAL-LIABILITY-AND-EQUITY> 162,736 <SALES> 18,408 <TOTAL-REVENUES> 18,408 <CGS> 11,327 <TOTAL-COSTS> 11,327 <OTHER-EXPENSES> 12,568 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> (2,388) <INCOME-PRETAX> (3,099) <INCOME-TAX> 870 <INCOME-CONTINUING> (3,969) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (3,969) <EPS-PRIMARY> (0.34) <EPS-DILUTED> (0.34)