<ARTICLE> 5 <MULTIPLIER> 1,000 <PERIOD-TYPE> 3-MOS 3-MOS <FISCAL-YEAR-END> JUL-31-1998 JUL-31-1997 <PERIOD-START> AUG-01-1998 AUG-01-1997 <PERIOD-END> OCT-31-1998 OCT-31-1997 <CASH> 4,122 5,908 <SECURITIES> 0 0 <RECEIVABLES> 5,349 7,771 <ALLOWANCES> 0 0 <INVENTORY> 0 2,377 <CURRENT-ASSETS> 11,301 17,083 <PP&E> 0 0 <DEPRECIATION> 0 0 <TOTAL-ASSETS> 35,377 30,577 <CURRENT-LIABILITIES> 3,774 5,394 <BONDS> 0 0 <PREFERRED-MANDATORY> 0 0 <PREFERRED> 0 0 <COMMON> 8 8 <OTHER-SE> 24,820 24,915 <TOTAL-LIABILITY-AND-EQUITY> 35,377 30,577 <SALES> 9,222 4,140 <TOTAL-REVENUES> 9,222 4,140 <CGS> 6,934 3,155 <TOTAL-COSTS> 2,085 1,942 <OTHER-EXPENSES> (70) (51) <LOSS-PROVISION> 311 0 <INTEREST-EXPENSE> 32 434 <INCOME-PRETAX> (70) (1,340) <INCOME-TAX> 0 0 <INCOME-CONTINUING> (70) (1,340) <DISCONTINUED> 0 0 <EXTRAORDINARY> 0 0 <CHANGES> 0 0 <NET-INCOME> (70) (1,340) <EPS-PRIMARY> (.01) (.81) <EPS-DILUTED> (.01) (.81)