<ARTICLE> 5 <MULTIPLIER> 1000 <CURRENCY> US DOLLARS <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> MAR-31-1998 <PERIOD-START> JUL-01-1997 <PERIOD-END> SEP-30-1997 <EXCHANGE-RATE> 1 <CASH> 4,489 <SECURITIES> 0 <RECEIVABLES> 6,010 <ALLOWANCES> 225 <INVENTORY> 0 <CURRENT-ASSETS> 12,056 <PP&E> 2,321 <DEPRECIATION> 5,601 <TOTAL-ASSETS> 17,389 <CURRENT-LIABILITIES> 6,803 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 0 <OTHER-SE> 9,911 <TOTAL-LIABILITY-AND-EQUITY> 17,389 <SALES> 4,978 <TOTAL-REVENUES> 4,978 <CGS> 900 <TOTAL-COSTS> 900 <OTHER-EXPENSES> 3,912 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 26 <INCOME-PRETAX> (394) <INCOME-TAX> 10 <INCOME-CONTINUING> (404) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (404) <EPS-PRIMARY> (.07) <EPS-DILUTED> (.07)