<ARTICLE> 5 <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> SEP-30-1998 <PERIOD-START> OCT-01-1997 <PERIOD-END> SEP-30-1998 <CASH> 1,974,000 <SECURITIES> 1,009,000 <RECEIVABLES> 2,024,000 <ALLOWANCES> (358,000) <INVENTORY> 3,492,000 <CURRENT-ASSETS> 8,624,000 <PP&E> 3,456,000 <DEPRECIATION> (2,831,000) <TOTAL-ASSETS> 9,249,000 <CURRENT-LIABILITIES> 1,258,000 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 43,220,000 <OTHER-SE> (25,000) <TOTAL-LIABILITY-AND-EQUITY> 9,249,000 <SALES> 6,985,000 <TOTAL-REVENUES> 6,985,000 <CGS> 4,104,000 <TOTAL-COSTS> 13,470,000 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 126,000 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> (2,538,000) <INCOME-TAX> 0 <INCOME-CONTINUING> (2,538,000) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (2,538,000) <EPS-PRIMARY> (0.23) <EPS-DILUTED> (0.23)