<ARTICLE> 5 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1999 <PERIOD-START> JUL-01-1999 <PERIOD-END> SEP-30-1999 <CASH> 2,473,000 <SECURITIES> 12,192,000 <RECEIVABLES> 883,000 <ALLOWANCES> 0 <INVENTORY> 121,000 <CURRENT-ASSETS> 15,881,000 <PP&E> 1,456,000 <DEPRECIATION> (728,000) <TOTAL-ASSETS> 18,188,000 <CURRENT-LIABILITIES> 3,117,000 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 151,000 <OTHER-SE> 9,350,000 <TOTAL-LIABILITY-AND-EQUITY> 18,188,000 <SALES> 540,000 <TOTAL-REVENUES> 540,000 <CGS> (392,000) <TOTAL-COSTS> (3,294,000) <OTHER-EXPENSES> (261,000) <LOSS-PROVISION> 0 <INTEREST-EXPENSE> (126,000) <INCOME-PRETAX> (3,015,000) <INCOME-TAX> 0 <INCOME-CONTINUING> 0 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (3,015,000) <EPS-BASIC> (0.20) <EPS-DILUTED> (0.20)