<ARTICLE> 5 <MULTIPLIER> 1,000 <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1996 <PERIOD-START> JAN-01-1996 <PERIOD-END> DEC-31-1996 <CASH> 23,832 <SECURITIES> 11,839 <RECEIVABLES> 24,152 <ALLOWANCES> 2,603 <INVENTORY> 9,776 <CURRENT-ASSETS> 78,935 <PP&E> 24,234 <DEPRECIATION> 19,339 <TOTAL-ASSETS> 85,693 <CURRENT-LIABILITIES> 17,954 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 68,217 <OTHER-SE> (792) <TOTAL-LIABILITY-AND-EQUITY> 85,693 <SALES> 120,608<F1> <TOTAL-REVENUES> 120,608 <CGS> 80,484<F2> <TOTAL-COSTS> 80,484 <OTHER-EXPENSES> 57,365 <LOSS-PROVISION> 645 <INTEREST-EXPENSE> 68 <INCOME-PRETAX> (8,721) <INCOME-TAX> (3,489) <INCOME-CONTINUING> (5,232) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (5,232) <EPS-PRIMARY> (0.32) <EPS-DILUTED> (0.32) <FN> <F1>Includes revenues from licensing of software and support services <F2>Includes costs from licensing of software and support services </FN>