<ARTICLE> 5 <MULTIPLIER> 1,000 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-START> JUL-01-1997 <PERIOD-END> SEP-30-1997 <CASH> 2,544 <SECURITIES> 1,923 <RECEIVABLES> 725 <ALLOWANCES> 200 <INVENTORY> 788 <CURRENT-ASSETS> 5,905 <PP&E> 3,127 <DEPRECIATION> 1,021 <TOTAL-ASSETS> 8,039 <CURRENT-LIABILITIES> 2,205 <BONDS> 400 <COMMON> 69,813 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <OTHER-SE> 322 <TOTAL-LIABILITY-AND-EQUITY> 8,039 <SALES> 658 <TOTAL-REVENUES> 835 <CGS> 354 <TOTAL-COSTS> 3,203 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 8 <INCOME-PRETAX> (2,730) <INCOME-TAX> 0 <INCOME-CONTINUING> (2,730) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (2,730) <EPS-PRIMARY> (0.08) <EPS-DILUTED> (0.08)