<ARTICLE> 5 <RESTATED> <MULTIPLIER> 1,000 <CURRENCY> U.S. DOLLARS <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1996 <PERIOD-START> JAN-01-1996 <PERIOD-END> DEC-31-1996 <EXCHANGE-RATE> 1 <CASH> 3,273 <SECURITIES> 0 <RECEIVABLES> 3,466 <ALLOWANCES> 405 <INVENTORY> 0 <CURRENT-ASSETS> 6,951 <PP&E> 1,552 <DEPRECIATION> 905 <TOTAL-ASSETS> 7,833 <CURRENT-LIABILITIES> 5,471 <BONDS> 0 <PREFERRED-MANDATORY> 15,509 <PREFERRED> 0 <COMMON> 48 <OTHER-SE> 5,694 <TOTAL-LIABILITY-AND-EQUITY> 7,833 <SALES> 5,205 <TOTAL-REVENUES> 8,347 <CGS> 311 <TOTAL-COSTS> 2,492 <OTHER-EXPENSES> 13,164 <LOSS-PROVISION> 665 <INTEREST-EXPENSE> 138 <INCOME-PRETAX> (7,447) <INCOME-TAX> 0 <INCOME-CONTINUING> (7,447) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (7,447) <EPS-PRIMARY> (1.91) <EPS-DILUTED> (1.91)