<ARTICLE> 5 <MULTIPLIER> 1,000 <CURRENCY> U.S. DOLLARS <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1996 <PERIOD-START> JAN-01-1996 <PERIOD-END> SEP-30-1996 <EXCHANGE-RATE> 1 <CASH> 28,750 <SECURITIES> 22,038 <RECEIVABLES> 7,512 <ALLOWANCES> (967) <INVENTORY> 2,266 <CURRENT-ASSETS> 61,633 <PP&E> 3,680 <DEPRECIATION> 0 <TOTAL-ASSETS> 65,499 <CURRENT-LIABILITIES> 10,858 <BONDS> 264 <COMMON> 125 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <OTHER-SE> 54,252 <TOTAL-LIABILITY-AND-EQUITY> 65,499 <SALES> 33,826 <TOTAL-REVENUES> 33,826 <CGS> 11,080 <TOTAL-COSTS> 11,080 <OTHER-EXPENSES> 14,579 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 9,465 <INCOME-TAX> 2,555 <INCOME-CONTINUING> 6,910 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 6,910 <EPS-PRIMARY> 0.52 <EPS-DILUTED> 0.52 <FN> ADDITIONAL CURRENT ASSET DEFERRED TAXES AND OTHER 2,034 OTHER ASSETS, NET 186 INTEREST INCOME, NET 1,298 </FN>