<ARTICLE> 5 <PERIOD-TYPE> 12-MOS <FISCAL-YEAR-END> JUL-31-1997 <PERIOD-END> JUL-31-1997 <CASH> 813,000 <SECURITIES> 0 <RECEIVABLES> 1,129,000 <ALLOWANCES> 140,000 <INVENTORY> 0 <CURRENT-ASSETS> 3,246,000 <PP&E> 281,000 <DEPRECIATION> 179,000 <TOTAL-ASSETS> 8,144,000 <CURRENT-LIABILITIES> 1,196,000 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 72,000 <OTHER-SE> 6,850,000 <TOTAL-LIABILITY-AND-EQUITY> 8,144,000 <SALES> 11,602,000 <TOTAL-REVENUES> 11,602,000 <CGS> 7,611,000 <TOTAL-COSTS> 13,814,000 <OTHER-EXPENSES> 78,000 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> (2,290,000) <INCOME-TAX> (396,000) <INCOME-CONTINUING> (1,894,000) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (1,894,000) <EPS-BASIC> (.27) <EPS-DILUTED> (.27)