<ARTICLE> 5 <MULTIPLIER> 1 <CURRENCY> U.S. <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> JUN-30-1999 <PERIOD-START> OCT-01-1998 <PERIOD-END> DEC-31-1998 <EXCHANGE-RATE> 1 <CASH> 73,000 <SECURITIES> 0 <RECEIVABLES> 225,000 <ALLOWANCES> (28,000) <INVENTORY> 260,000 <CURRENT-ASSETS> 973,000 <PP&E> 1,365,000 <DEPRECIATION> 590,000 <TOTAL-ASSETS> 2,065,000 <CURRENT-LIABILITIES> 4,473,000 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 1,342,000 <COMMON> 13,586,000 <OTHER-SE> (18,909,000) <TOTAL-LIABILITY-AND-EQUITY> 2,065,000 <SALES> 0 <TOTAL-REVENUES> 520,000 <CGS> 424,000 <TOTAL-COSTS> 1,984,000 <OTHER-EXPENSES> 351,000 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 114,000 <INCOME-PRETAX> (1,929,000) <INCOME-TAX> 0 <INCOME-CONTINUING> (1,929,000) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (1,929,000) <EPS-PRIMARY> (0.14) <EPS-DILUTED> (0.14)