<ARTICLE> 5 <PERIOD-TYPE> 12-MOS <FISCAL-YEAR-END> JUL-31-1998 <PERIOD-END> JUL-31-1998 <CASH> 936,000 <SECURITIES> 0 <RECEIVABLES> 1,430,000 <ALLOWANCES> 0 <INVENTORY> 0 <CURRENT-ASSETS> 2,761,000 <PP&E> 676,000 <DEPRECIATION> 249,000 <TOTAL-ASSETS> 12,956,000 <CURRENT-LIABILITIES> 3,488,000 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 114,000 <OTHER-SE> 9,097,000 <TOTAL-LIABILITY-AND-EQUITY> 12,956,000 <SALES> 0 <TOTAL-REVENUES> 1,389,000 <CGS> 8,108,000 <TOTAL-COSTS> 17,746,000 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> (2,940,000) <INCOME-TAX> 1,837,000 <INCOME-CONTINUING> (4,777,000) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (4,777,000) <EPS-BASIC> (.61) <EPS-DILUTED> (.61)