<ARTICLE> 5 <MULTIPLIER> 1,000 <PERIOD-TYPE> 12-MOS 9-MOS <FISCAL-YEAR-END> DEC-31-1997 DEC-31-1998 <PERIOD-START> JAN-01-1997 JAN-01-1998 <PERIOD-END> DEC-31-1997 SEP-30-1998 <CASH> 3,990 2,658 <SECURITIES> 3,587 1,647 <RECEIVABLES> 3,863 5,908 <ALLOWANCES> 343 338 <INVENTORY> 547 273 <CURRENT-ASSETS> 11,894 10,444 <PP&E> 1,685 1,832 <DEPRECIATION> 749 (1,152) <TOTAL-ASSETS> 13,987 12,478 <CURRENT-LIABILITIES> 2,038 4,450 <BONDS> 0 0 <PREFERRED-MANDATORY> 0 0 <PREFERRED> 0 0 <COMMON> 8 8 <OTHER-SE> 11,941 8,019 <TOTAL-LIABILITY-AND-EQUITY> 13,987 12,478 <SALES> 7,011 9,642 <TOTAL-REVENUES> 7,011 9,642 <CGS> 8,351 8,851 <TOTAL-COSTS> 8,351 8,851 <OTHER-EXPENSES> 8,908 5,166 <LOSS-PROVISION> 220 190 <INTEREST-EXPENSE> 674 341 <INCOME-PRETAX> (9,574) (4,034) <INCOME-TAX> (66) (49) <INCOME-CONTINUING> (9,640) (4,083) <DISCONTINUED> 0 0 <EXTRAORDINARY> 0 0 <CHANGES> 0 0 <NET-INCOME> (9,640) (4,083) <EPS-PRIMARY> (1.28) (0.53) <EPS-DILUTED> (1.28) (0.53)