<ARTICLE> 5 <MULTIPLIER> 1000 <PERIOD-TYPE> YEAR YEAR <FISCAL-YEAR-END> JUL-31-1998 JUL-31-1997 <PERIOD-START> AUG-01-1997 AUG-01-1996 <PERIOD-END> JUL-31-1998 JUL-31-1997 <CASH> 5,908 325 <SECURITIES> 0 0 <RECEIVABLES> 8,035 3,264 <ALLOWANCES> 264 154 <INVENTORY> 2,377 220 <CURRENT-ASSETS> 17,083 4,153 <PP&E> 10,750 5,751 <DEPRECIATION> 2,322 1,313 <TOTAL-ASSETS> 30,577 9,974 <CURRENT-LIABILITIES> 5,394 3,416 <BONDS> 0 0 <PREFERRED-MANDATORY> 0 8,936 <PREFERRED> 0 0 <COMMON> 8 2 <OTHER-SE> 0 0 <TOTAL-LIABILITY-AND-EQUITY> 30,577 9,974 <SALES> 27,372 14,211 <TOTAL-REVENUES> 27,372 14,211 <CGS> 20,525 11,644 <TOTAL-COSTS> 20,525 11,644 <OTHER-EXPENSES> 7,743 6,672 <LOSS-PROVISION> 0 0 <INTEREST-EXPENSE> 1,707 1,665 <INCOME-PRETAX> (2,369) (5,584) <INCOME-TAX> (2,369) (5,584) <INCOME-CONTINUING> (2,369) (5,584) <DISCONTINUED> 0 0 <EXTRAORDINARY> 0 0 <CHANGES> 0 0 <NET-INCOME> (2,369) (5,584) <EPS-PRIMARY> (1.01) (3.74) <EPS-DILUTED> (1.01) (3.74)