<ARTICLE> 5 <MULTIPLIER> 1,000 <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> SEP-30-1998 <CASH> 33,275 <SECURITIES> 98,107 <RECEIVABLES> 19,749 <ALLOWANCES> 807 <INVENTORY> 8,345 <CURRENT-ASSETS> 159,838 <PP&E> 3,172 <DEPRECIATION> 508 <TOTAL-ASSETS> 169,495 <CURRENT-LIABILITIES> 13,118 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 13 <OTHER-SE> 156,377 <TOTAL-LIABILITY-AND-EQUITY> 169,495 <SALES> 32,642 <TOTAL-REVENUES> 32,642 <CGS> 19,677 <TOTAL-COSTS> 19,677 <OTHER-EXPENSES> 3,580 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> (4,418) <INCOME-PRETAX> 838 <INCOME-TAX> 2,020 <INCOME-CONTINUING> (1,182) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (1,182) <EPS-PRIMARY> (0.10) <EPS-DILUTED> (0.10)