<ARTICLE> 5 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> SEP-30-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> MAR-31-1998 <CASH> 4,887,000 <SECURITIES> 0 <RECEIVABLES> 3,117,000 <ALLOWANCES> (401,000) <INVENTORY> 1,897,000 <CURRENT-ASSETS> 10,208,000 <PP&E> 3,540,000 <DEPRECIATION> (2,331,000) <TOTAL-ASSETS> 11,466,000 <CURRENT-LIABILITIES> 3,299,000 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 21,464,000 <OTHER-SE> (13,297,000) <TOTAL-LIABILITY-AND-EQUITY> 11,466,000 <SALES> 3,037,000 <TOTAL-REVENUES> 3,037,000 <CGS> 1,363,000 <TOTAL-COSTS> 0 <OTHER-EXPENSES> 2,321,000 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 40,000 <INCOME-PRETAX> (571,000) <INCOME-TAX> 5,000 <INCOME-CONTINUING> (576,000) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (576,000) <EPS-PRIMARY> (0.09) <EPS-DILUTED> (0.09)