<ARTICLE> 5 <MULTIPLIER> 1,000 <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1996 <PERIOD-START> JAN-01-1996 <PERIOD-END> SEP-30-1996 <CASH> 18,722 <SECURITIES> 12,526 <RECEIVABLES> 22,749 <ALLOWANCES> 3,792 <INVENTORY> 13,786 <CURRENT-ASSETS> 76,258 <PP&E> 24,236 <DEPRECIATION> 18,671 <TOTAL-ASSETS> 83,983 <CURRENT-LIABILITIES> 18,980 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 66,485 <OTHER-SE> (1,847) <TOTAL-LIABILITY-AND-EQUITY> 83,983 <SALES> 87,718<F1> <TOTAL-REVENUES> 87,718 <CGS> 61,556<F2> <TOTAL-COSTS> 61,556 <OTHER-EXPENSES> 44,741 <LOSS-PROVISION> 690 <INTEREST-EXPENSE> 98 <INCOME-PRETAX> (10,480) <INCOME-TAX> (4,193) <INCOME-CONTINUING> (6,287) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (6,287) <EPS-PRIMARY> (0.38) <EPS-DILUTED> (0.38) <FN> <F1>Includes revenues from licensing of software and support services. <F2>Includes costs from licensing of software and support services. </FN>