<ARTICLE> 5 <MULTIPLIER> 1000 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> Dec-31-1996 <PERIOD-END> Sep-30-1996 <CASH> 4449 <SECURITIES> 16861 <RECEIVABLES> 10451<F1> <ALLOWANCES> 0 <INVENTORY> 4169 <CURRENT-ASSETS> 36359 <PP&E> 7425<F2> <DEPRECIATION> 0 <TOTAL-ASSETS> 50036 <CURRENT-LIABILITIES> 9523 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 87 <OTHER-SE> 34933 <TOTAL-LIABILITY-AND-EQUITY> 50036 <SALES> 9361 <TOTAL-REVENUES> 12145 <CGS> 3956 <TOTAL-COSTS> 6359 <OTHER-EXPENSES> 1649<F3> <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 125 <INCOME-PRETAX> 1065 <INCOME-TAX> 90 <INCOME-CONTINUING> 0 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 975 <EPS-PRIMARY> .10 <EPS-DILUTED> .10 <FN> <F1>Net of allowance for doubtful accounts, consistent with balance sheet presentation. <F2>Net of accumulated depreciation, consistent with balance sheet presentation. <F3>Research and development expenses </FN>