<ARTICLE> 5 <MULTIPLIER> 1,000 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> OCT-31-1997 <PERIOD-START> NOV-01-1996 <PERIOD-END> JAN-31-1997 <CASH> 795 <SECURITIES> 21,455 <RECEIVABLES> 4,968 <ALLOWANCES> 100 <INVENTORY> 3,033 <CURRENT-ASSETS> 31,552 <PP&E> 4,292 <DEPRECIATION> 862 <TOTAL-ASSETS> 45,059 <CURRENT-LIABILITIES> 6,207 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 110 <OTHER-SE> 38,510 <TOTAL-LIABILITY-AND-EQUITY> 45,059 <SALES> 1,706 <TOTAL-REVENUES> 6,487 <CGS> 563 <TOTAL-COSTS> 2,393 <OTHER-EXPENSES> 337 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 1,677 <INCOME-TAX> 600 <INCOME-CONTINUING> 1,077 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 1,077 <EPS-PRIMARY> .10 <EPS-DILUTED> .10