<ARTICLE> 5 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> JUL-31-2000 <PERIOD-START> AUG-01-1999 <PERIOD-END> OCT-31-1999 <CASH> 962,000 <SECURITIES> 18,816,000 <RECEIVABLES> 14,178,000 <ALLOWANCES> 5,040,000 <INVENTORY> 9,783,000 <CURRENT-ASSETS> 43,062,000 <PP&E> 12,804,000 <DEPRECIATION> 3,273,000 <TOTAL-ASSETS> 53,616,000 <CURRENT-LIABILITIES> 1,390,000 <BONDS> 7,500,000 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 112,000 <OTHER-SE> 32,614,000 <TOTAL-LIABILITY-AND-EQUITY> 53,616,000 <SALES> 18,909,000 <TOTAL-REVENUES> 18,909,000 <CGS> 13,668,000 <TOTAL-COSTS> 13,668,000 <OTHER-EXPENSES> 7,697,000 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> (2,170,000) <INCOME-TAX> (594,000) <INCOME-CONTINUING> 0 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (1,576,000) <EPS-BASIC> (.14) <EPS-DILUTED> (.14)