<ARTICLE> 5 <MULTIPLIER> 1,000 <PERIOD-TYPE> 3-MOS 6-MOS <FISCAL-YEAR-END> DEC-31-1998 DEC-31-1998 <PERIOD-START> APR-01-1998 JAN-01-1998 <PERIOD-END> JUN-30-1998 JUN-30-1998 <CASH> 5,285 5,285 <SECURITIES> 4,000 4,000 <RECEIVABLES> 10,475 10,475 <ALLOWANCES> (445) (445) <INVENTORY> 0 0 <CURRENT-ASSETS> 25,056 25,056 <PP&E> 9,074 9,074 <DEPRECIATION> (3,553) (3,553) <TOTAL-ASSETS> 35,797 35,717 <CURRENT-LIABILITIES> 6,813 6,813 <BONDS> 0 0 <PREFERRED-MANDATORY> 0 0 <PREFERRED> 0 0 <COMMON> 163 163 <OTHER-SE> 28,204 28,204 <TOTAL-LIABILITY-AND-EQUITY> 35,797 35,797 <SALES> 11,830 21,980 <TOTAL-REVENUES> 11,830 21,980 <CGS> 5,003 10,078 <TOTAL-COSTS> 0 0 <OTHER-EXPENSES> 7,929 15,779 <LOSS-PROVISION> 0 0 <INTEREST-EXPENSE> (185) 345 <INCOME-PRETAX> (917) (3,532) <INCOME-TAX> 25 25 <INCOME-CONTINUING> (942) (3,557) <DISCONTINUED> 0 0 <EXTRAORDINARY> 0 0 <CHANGES> (37) 12 <NET-INCOME> (979) (3,545) <EPS-PRIMARY> (0.06) (0.22) <EPS-DILUTED> (0.06) (0.22)