<ARTICLE> 5 <PERIOD-TYPE> 12-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-END> DEC-31-1998 <CASH> 924,000 <SECURITIES> 0 <RECEIVABLES> 1,486,000 <ALLOWANCES> (155,000) <INVENTORY> 1,123,000 <CURRENT-ASSETS> 7,523,000 <PP&E> 1,182,000 <DEPRECIATION> (667,000) <TOTAL-ASSETS> 8,118,000 <CURRENT-LIABILITIES> 1,740,000 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 315,000 <OTHER-SE> 12,015,000 <TOTAL-LIABILITY-AND-EQUITY> 8,118,000 <SALES> 11,553,000 <TOTAL-REVENUES> 11,980,000 <CGS> 6,850,000 <TOTAL-COSTS> 37,983,000 <OTHER-EXPENSES> 1,263,000 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 459,000 <INCOME-PRETAX> (27,266,000) <INCOME-TAX> 0 <INCOME-CONTINUING> (27,266,000) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (27,266,000) <EPS-PRIMARY> (1.02) <EPS-DILUTED> (1.02)