<ARTICLE> 5 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> JUL-31-1999 <PERIOD-START> AUG-01-1998 <PERIOD-END> OCT-31-1998 <CASH> 1,229,000 <SECURITIES> 23,196,000 <RECEIVABLES> 18,840,000 <ALLOWANCES> 4,386,000 <INVENTORY> 8,675,000 <CURRENT-ASSETS> 50,041,000 <PP&E> 4,472,000 <DEPRECIATION> 2,401,000 <TOTAL-ASSETS> 53,858,000 <CURRENT-LIABILITIES> 15,739,000 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 112,000 <OTHER-SE> 38,007,000 <TOTAL-LIABILITY-AND-EQUITY> 53,858,000 <SALES> 30,401,000 <TOTAL-REVENUES> 30,401,000 <CGS> 20,701,000 <TOTAL-COSTS> 20,701,000 <OTHER-EXPENSES> 7,738,000 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 5,000 <INCOME-PRETAX> 2,282,000 <INCOME-TAX> 847,000 <INCOME-CONTINUING> 0 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 1,435,000 <EPS-PRIMARY> .13 <EPS-DILUTED> .13