<ARTICLE> 5 <MULTIPLIER> 1,000 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> MAR-31-1998 <CASH> 11,433 <SECURITIES> 49,121 <RECEIVABLES> 8,267 <ALLOWANCES> 651 <INVENTORY> 6,734 <CURRENT-ASSETS> 76,185 <PP&E> 4,254 <DEPRECIATION> 434 <TOTAL-ASSETS> 81,722 <CURRENT-LIABILITIES> 18,163 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 14 <OTHER-SE> 63,217 <TOTAL-LIABILITY-AND-EQUITY> 81,722 <SALES> 12,965 <TOTAL-REVENUES> 15,235 <CGS> 6,038 <TOTAL-COSTS> 7,226 <OTHER-EXPENSES> 5,850 <LOSS-PROVISION> 150 <INTEREST-EXPENSE> (851) <INCOME-PRETAX> 3,010 <INCOME-TAX> 254 <INCOME-CONTINUING> 2,756 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 2,756 <EPS-PRIMARY> .20<F1> <EPS-DILUTED> .19 <FN> <F1>FOR PURPOSES OF THIS EXHIBIT, PRIMARY MEANS BASIC </FN>