<ARTICLE> 5 <MULTIPLIER> 1,000 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> MAR-31-1998 <CASH> 21,417 <SECURITIES> 34,101 <RECEIVABLES> 13,592 <ALLOWANCES> 910 <INVENTORY> 940 <CURRENT-ASSETS> 79,234 <PP&E> 4,440 <DEPRECIATION> 0 <TOTAL-ASSETS> 84,435 <CURRENT-LIABILITIES> 25,294 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 1,192 <OTHER-SE> 57,973 <TOTAL-LIABILITY-AND-EQUITY> 84,435 <SALES> 15,440 <TOTAL-REVENUES> 23,160 <CGS> 3,124 <TOTAL-COSTS> 7,568 <OTHER-EXPENSES> 2,486 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 758 <INCOME-PRETAX> 6,717 <INCOME-TAX> 2,284 <INCOME-CONTINUING> 4,433 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 4,433 <EPS-PRIMARY> 0.37<F1> <EPS-DILUTED> 0.35 <FN> <F1>Information has been prepared in accordance with SFAS No. 128. Basic and diluted EPS have been reported in place of primary and fully diluted. </FN>