<ARTICLE> 5 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> MAR-31-1999 <PERIOD-START> OCT-1-1998 <PERIOD-END> DEC-31-1998 <CASH> 5,364,000 <SECURITIES> 800,000 <RECEIVABLES> 2,286,000 <ALLOWANCES> 0 <INVENTORY> 2,222,000 <CURRENT-ASSETS> 10,911,000 <PP&E> 7,994,000 <DEPRECIATION> 5,421,000 <TOTAL-ASSETS> 13,558,000 <CURRENT-LIABILITIES> 4,126,000 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 3,580,000 <COMMON> 63,777,000 <OTHER-SE> (58,997,000) <TOTAL-LIABILITY-AND-EQUITY> 8,360,000 <SALES> 3,082,000 <TOTAL-REVENUES> 3,103,000 <CGS> 2,144,000 <TOTAL-COSTS> 4,266,000 <OTHER-EXPENSES> 26,000 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 53,000 <INCOME-PRETAX> (1,242,000) <INCOME-TAX> 0 <INCOME-CONTINUING> (1,242,000) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (1,242,000) <EPS-PRIMARY> (0.09) <EPS-DILUTED> (0.09)