<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> 51,035 <SECURITIES> 27,540 <RECEIVABLES> 8,473 <ALLOWANCES> 821 <INVENTORY> 4,525 <CURRENT-ASSETS> 91,409 <PP&E> 9,962 <DEPRECIATION> 2,799 <TOTAL-ASSETS> 101,153 <CURRENT-LIABILITIES> 11,183 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 176 <OTHER-SE> 89,794 <TOTAL-LIABILITY-AND-EQUITY> 101,153 <SALES> 0 <TOTAL-REVENUES> 8,057 <CGS> 2,289 <TOTAL-COSTS> 2,289 <OTHER-EXPENSES> 13,454 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> (1,188) <INCOME-PRETAX> (6,498) <INCOME-TAX> 0 <INCOME-CONTINUING> (7,686) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (6,498) <EPS-PRIMARY> (.37) <EPS-DILUTED> (.37)