<ARTICLE> 5 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> JUL-31-1998 <PERIOD-START> NOV-01-1997 <PERIOD-END> JAN-31-1998 <CASH> 819,000 <SECURITIES> 21,637,000 <RECEIVABLES> 10,827,000 <ALLOWANCES> 1,670,000 <INVENTORY> 9,118,000 <CURRENT-ASSETS> 44,164,000 <PP&E> 2,562,000 <DEPRECIATION> 1,662,000 <TOTAL-ASSETS> 45,097,000 <CURRENT-LIABILITIES> 10,825,000 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 111,000 <OTHER-SE> 0 <TOTAL-LIABILITY-AND-EQUITY> 45,097,000 <SALES> 23,514,000 <TOTAL-REVENUES> 23,514,000 <CGS> 15,098,000 <TOTAL-COSTS> 15,098,000 <OTHER-EXPENSES> 6,107,000 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> (291,000) <INCOME-PRETAX> 2,600,000 <INCOME-TAX> 1,005,000 <INCOME-CONTINUING> 1,595,000 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 1,595,000 <EPS-PRIMARY> .14 <EPS-DILUTED> .14