<ARTICLE> 5 <MULTIPLIER> 1,000 <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> MAR-31-1997 <PERIOD-START> APR-01-1996 <PERIOD-END> DEC-31-1996 <CASH> 990 <SECURITIES> 7,088 <RECEIVABLES> 2,071 <ALLOWANCES> 0 <INVENTORY> 1,917 <CURRENT-ASSETS> 12,871 <PP&E> 6,727 <DEPRECIATION> 3,486 <TOTAL-ASSETS> 16,560 <CURRENT-LIABILITIES> 4,202 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 15 <OTHER-SE> 12,222 <TOTAL-LIABILITY-AND-EQUITY> 16,560 <SALES> 5,031 <TOTAL-REVENUES> 13,851 <CGS> 1,969 <TOTAL-COSTS> 19,993 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> (671)<F1> <INCOME-PRETAX> (5,471) <INCOME-TAX> 0 <INCOME-CONTINUING> 0 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (5,471) <EPS-PRIMARY> (.37) <EPS-DILUTED> (.37) <FN> <F1>Interest income, net. </FN>