<ARTICLE> 5 <MULTIPLIER> 1 <CURRENCY> U.S. <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> JUN-30-1998 <PERIOD-START> OCT-01-1997 <PERIOD-END> DEC-31-1997 <EXCHANGE-RATE> 1 <CASH> 1,523,000 <SECURITIES> 0 <RECEIVABLES> 150,000 <ALLOWANCES> (16,000) <INVENTORY> 635,000 <CURRENT-ASSETS> 3,078,000 <PP&E> 531,000 <DEPRECIATION> 389,000 <TOTAL-ASSETS> 3,654,000 <CURRENT-LIABILITIES> 3,661,000 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 9,221,000 <OTHER-SE> (12,496,000) <TOTAL-LIABILITY-AND-EQUITY> 3,654,000 <SALES> 0 <TOTAL-REVENUES> 116,000 <CGS> 61,000 <TOTAL-COSTS> 2,992,000 <OTHER-EXPENSES> 1,000 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 244,000 <INCOME-PRETAX> (3,121,000) <INCOME-TAX> 0 <INCOME-CONTINUING> (3,121,000) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (3,121,000) <EPS-PRIMARY> (0.34) <EPS-DILUTED> (0.34)