<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR THE THREE MONTH PERIOD ENDED MARCH 31, 1997 AND IS QUALIFIED IN IS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-START> JAN-01-1997 <PERIOD-END> MAR-31-1997 <CASH> 8,211,000 <SECURITIES> 3,054,000 <RECEIVABLES> 3,475,000 <ALLOWANCES> 327,000 <INVENTORY> 3,361,000 <CURRENT-ASSETS> 19,204,000 <PP&E> 2,856,000 <DEPRECIATION> 2,250,000 <TOTAL-ASSETS> 20,742,000 <CURRENT-LIABILITIES> 1,925,000 <BONDS> 3,000 <PREFERRED-MANDATORY> 0 <PREFERRED> 484,000 <COMMON> 35,460,000 <OTHER-SE> (17,127,000) <TOTAL-LIABILITY-AND-EQUITY> 20,742,000 <SALES> 4,725,000 <TOTAL-REVENUES> 4,725,000 <CGS> 1,269,000 <TOTAL-COSTS> 1,303,000 <OTHER-EXPENSES> 3,298,000 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> (135,000) <INCOME-PRETAX> 0 <INCOME-TAX> 259,000 <INCOME-CONTINUING> 259,000 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 259,000 <EPS-PRIMARY> .04 <EPS-DILUTED> .04