<ARTICLE> 5 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> Jul-31-1998 <PERIOD-START> Aug-01-1997 <PERIOD-END> Oct-31-1997 <CASH> 667,000 <SECURITIES> 0 <RECEIVABLES> 0 <ALLOWANCES> 0 <INVENTORY> 78,000 <CURRENT-ASSETS> 764,000 <PP&E> 183,000 <DEPRECIATION> 135,000 <TOTAL-ASSETS> 886,000 <CURRENT-LIABILITIES> 522,000 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 20,000 <OTHER-SE> 344,000 <TOTAL-LIABILITY-AND-EQUITY> 886,000 <SALES> 0 <TOTAL-REVENUES> 0 <CGS> 0 <TOTAL-COSTS> 1,176,000 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> (16,000) <INCOME-PRETAX> (1,160,000) <INCOME-TAX> 0 <INCOME-CONTINUING> (1,160,000) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (1,160,000) <EPS-PRIMARY> (.06) <EPS-DILUTED> (.06)