<ARTICLE> 5 <MULTIPLIER> 1,000 <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> DEC-31-1998 <CASH> 7,135 <SECURITIES> 58,609 <RECEIVABLES> 5,742 <ALLOWANCES> 908 <INVENTORY> 5,282 <CURRENT-ASSETS> 76,446 <PP&E> 12,915 <DEPRECIATION> 6,668 <TOTAL-ASSETS> 82,948 <CURRENT-LIABILITIES> 8,362 <BONDS> 936 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 19 <OTHER-SE> 73,347 <TOTAL-LIABILITY-AND-EQUITY> 82,948 <SALES> 47,121 <TOTAL-REVENUES> 48,114 <CGS> 29,573 <TOTAL-COSTS> 29,573 <OTHER-EXPENSES> 34,080 <LOSS-PROVISION> 787 <INTEREST-EXPENSE> 318 <INCOME-PRETAX> (13,349) <INCOME-TAX> 14 <INCOME-CONTINUING> (13,363) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (13,363) <EPS-PRIMARY> (0.83) <EPS-DILUTED> (0.83)