<ARTICLE> 5 <PERIOD-TYPE> 12-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> DEC-31-1998 <CASH> 9,346,000 <SECURITIES> 17,700,000 <RECEIVABLES> 851,000 <ALLOWANCES> (122,000) <INVENTORY> 0 <CURRENT-ASSETS> 27,850,000 <PP&E> 3,186,000 <DEPRECIATION> (717,000) <TOTAL-ASSETS> 30,364,000 <CURRENT-LIABILITIES> 3,051,000 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 1,000 <COMMON> 11,000 <OTHER-SE> 27,301,000 <TOTAL-LIABILITY-AND-EQUITY> 30,364,000 <SALES> 0 <TOTAL-REVENUES> 1,712,000 <CGS> 0 <TOTAL-COSTS> 0 <OTHER-EXPENSES> 18,542,000 <LOSS-PROVISION> 126,000 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> (15,710,000) <INCOME-TAX> 0 <INCOME-CONTINUING> 0 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (15,710,000) <EPS-PRIMARY> (1.73) <EPS-DILUTED> 0