<ARTICLE> 5 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> Jul-31-1996 <PERIOD-START> Aug-01-1995 <PERIOD-END> Oct-31-1996 <CASH> 896,000 <SECURITIES> 0 <RECEIVABLES> 219,000 <ALLOWANCES> 0 <INVENTORY> 201,000 <CURRENT-ASSETS> 1,342,000 <PP&E> 224,000 <DEPRECIATION> 138,000 <TOTAL-ASSETS> 1,493,000 <CURRENT-LIABILITIES> 487,000 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 1,000 <COMMON> 17,000 <OTHER-SE> 988,000 <TOTAL-LIABILITY-AND-EQUITY> 1,493,000 <SALES> 219,000 <TOTAL-REVENUES> 219,000 <CGS> 212,000 <TOTAL-COSTS> 734,000 <OTHER-EXPENSES> (10,000) <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> (717,000) <INCOME-TAX> 0 <INCOME-CONTINUING> (717,000) <DISCONTINUED> 0 <EXTRAORDINARY> 8,000 <CHANGES> 0 <NET-INCOME> (709,000) <EPS-PRIMARY> (.04) <EPS-DILUTED> (.04)