<ARTICLE> 5 <MULTIPLIER> 1000 <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> OCT-31-1997 <PERIOD-START> NOV-01-1997 <PERIOD-END> JUL-31-1997 <CASH> 7,740 <SECURITIES> 20,117 <RECEIVABLES> 2,390 <ALLOWANCES> (72) <INVENTORY> 2,125 <CURRENT-ASSETS> 32,867 <PP&E> 6,768 <DEPRECIATION> (2,690) <TOTAL-ASSETS> 44,063 <CURRENT-LIABILITIES> 11,715 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 70,490 <OTHER-SE> (38,406) <TOTAL-LIABILITY-AND-EQUITY> 44,063 <SALES> 5,076 <TOTAL-REVENUES> 5,747 <CGS> 3,731 <TOTAL-COSTS> 7,047 <OTHER-EXPENSES> 3,022 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 197 <INCOME-PRETAX> (6,881) <INCOME-TAX> 0 <INCOME-CONTINUING> (6,881) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (6,881) <EPS-PRIMARY> (0.63) <EPS-DILUTED> (0.63)