<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> 25,385 <SECURITIES> 25,922<F1> <RECEIVABLES> 8,019 <ALLOWANCES> 1,014 <INVENTORY> 2,166 <CURRENT-ASSETS> 61,418 <PP&E> 18,898 <DEPRECIATION> 13,198 <TOTAL-ASSETS> 69,283 <CURRENT-LIABILITIES> 23,268 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 116,732 <OTHER-SE> (85,045) <TOTAL-LIABILITY-AND-EQUITY> 69,283 <SALES> 23,562 <TOTAL-REVENUES> 23,562 <CGS> 11,052 <TOTAL-COSTS> 11,052 <OTHER-EXPENSES> 23,757 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 576 <INCOME-PRETAX> (9,928) <INCOME-TAX> 47 <INCOME-CONTINUING> (10,045) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (10,045) <EPS-PRIMARY> (.54) <EPS-DILUTED> (.54) <FN> <F1>THIS AMOUNT REPRESENTS SHORT TERM INVESTMENTS HELD BY THE COMPANY AT 9/30/96 </FN>