<ARTICLE> 5 <MULTIPLIER> 1,000 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> JUL-31-2000 <PERIOD-START> AUG-01-1999 <PERIOD-END> OCT-31-1999 <CASH> 44,277 <SECURITIES> 0 <RECEIVABLES> 35,603 <ALLOWANCES> (18,541) <INVENTORY> 1,472 <CURRENT-ASSETS> 64,619 <PP&E> 10,685 <DEPRECIATION> (7,702) <TOTAL-ASSETS> 81,838 <CURRENT-LIABILITIES> 2,640 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 251 <OTHER-SE> 93,624 <TOTAL-LIABILITY-AND-EQUITY> 81,838 <SALES> 11,612 <TOTAL-REVENUES> 11,612 <CGS> 3,978 <TOTAL-COSTS> 10,562 <OTHER-EXPENSES> 4,098 <LOSS-PROVISION> 2,486 <INTEREST-EXPENSE> (564) <INCOME-PRETAX> 1,614 <INCOME-TAX> 97 <INCOME-CONTINUING> 1,517 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 1,517 <EPS-BASIC> 06 <EPS-DILUTED> 06