<ARTICLE> 5 <MULTIPLIER> 1,000 <CURRENCY> U.S. DOLLARS <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-START> JAN-01-1997 <PERIOD-END> SEP-30-1997 <EXCHANGE-RATE> 1 <CASH> 24,485 <SECURITIES> 19,031 <RECEIVABLES> 7,062 <ALLOWANCES> (1,213) <INVENTORY> 5,170 <CURRENT-ASSETS> 58,009 <PP&E> 5,065 <DEPRECIATION> 0 <TOTAL-ASSETS> 69,696 <CURRENT-LIABILITIES> 10,671 <BONDS> 7 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 129 <OTHER-SE> 59,018 <TOTAL-LIABILITY-AND-EQUITY> 69,696 <SALES> 39,657 <TOTAL-REVENUES> 39,657 <CGS> 14,121 <TOTAL-COSTS> 14,121 <OTHER-EXPENSES> 35,466 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> (8,613) <INCOME-TAX> (3,316) <INCOME-CONTINUING> (5,297) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (5,297) <EPS-PRIMARY> (0.41) <EPS-DILUTED> (0.41) <FN> ADDITIONAL CURRENT ASSET - DEFERRED TAXES 2,614 ADDITIONAL CURRENT ASSET - OTHER 860 OTHER ASSET - DEFERRED TAXES 4,346 OTHER ASSETS - NET 2,276 INTEREST INCOME, NET 1,317