<ARTICLE> 5 <MULTIPLIER> 1000 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-END> JUN-30-1998 <CASH> 1,851 <SECURITIES> 12,364 <RECEIVABLES> 964 <ALLOWANCES> 25 <INVENTORY> 183 <CURRENT-ASSETS> 15,829 <PP&E> 4,749 <DEPRECIATION> 2,054 <TOTAL-ASSETS> 19,123 <CURRENT-LIABILITIES> 1,333 <BONDS> 197 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 127 <OTHER-SE> 17,466 <TOTAL-LIABILITY-AND-EQUITY> 19,123 <SALES> 1,011 <TOTAL-REVENUES> 1,011 <CGS> 263 <TOTAL-COSTS> 263 <OTHER-EXPENSES> 2,460 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 187 <INCOME-PRETAX> (1,525) <INCOME-TAX> 0 <INCOME-CONTINUING> (1,525) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (1,525) <EPS-PRIMARY> (.12) <EPS-DILUTED> (.12)