<ARTICLE> 5 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> JAN-02-1998 <PERIOD-END> MAR-31-1997 <CASH> 5,058,000 <SECURITIES> 38,648,000 <RECEIVABLES> 1,495,000 <ALLOWANCES> (45,000) <INVENTORY> 561,000 <CURRENT-ASSETS> 47,012,000 <PP&E> 3,273,000 <DEPRECIATION> (467,000) <TOTAL-ASSETS> 82,339,000 <CURRENT-LIABILITIES> 4,650,000 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 116,071,000 <OTHER-SE> (5,801,000) <TOTAL-LIABILITY-AND-EQUITY> 82,339,000 <SALES> 2,112,000 <TOTAL-REVENUES> 2,112,000 <CGS> 1,472,000 <TOTAL-COSTS> 6,360,000 <OTHER-EXPENSES> 24,000 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 42,000 <INCOME-PRETAX> (4,704,000) <INCOME-TAX> 0 <INCOME-CONTINUING> (4,704,000) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (4,704,000) <EPS-PRIMARY> (0.35) <EPS-DILUTED> (0.35)