<ARTICLE> 5 <CURRENCY> U.S. DOLLARS <PERIOD-TYPE> 12-MOS <FISCAL-YEAR-END> Dec-31-1998 <PERIOD-START> Jan-1-1998 <PERIOD-END> Dec-31-1998 <EXCHANGE-RATE> 1 <CASH> 17,437,000 <SECURITIES> 104,000 <RECEIVABLES> 2,692,000 <ALLOWANCES> (320,000) <INVENTORY> 0 <CURRENT-ASSETS> 20,448,000 <PP&E> 9,103,000 <DEPRECIATION> (4,077,000) <TOTAL-ASSETS> 33,821,000 <CURRENT-LIABILITIES> 4,966,000 <BONDS> 10,000,000 <PREFERRED-MANDATORY> 12,914,000 <PREFERRED> 0 <COMMON> 18,731,000 <OTHER-SE> (16,359,000) <TOTAL-LIABILITY-AND-EQUITY> 33,821,000 <SALES> 7,550,000 <TOTAL-REVENUES> 7,550,000 <CGS> 9,639,000 <TOTAL-COSTS> 25,588,000 <OTHER-EXPENSES> (607,000) <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 1,589,000 <INCOME-PRETAX> (19,020,000) <INCOME-TAX> 0 <INCOME-CONTINUING> (19,020,000) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (19,020,000) <EPS-PRIMARY> (2.09) <EPS-DILUTED> (2.09)