<ARTICLE> 5 <MULTIPLIER> 1,000 <CURRENCY> US DOLLARS <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-START> JAN-01-1997 <PERIOD-END> DEC-31-1997 <EXCHANGE-RATE> 1 <CASH> 24,866 <SECURITIES> 21,665 <RECEIVABLES> 8,582 <ALLOWANCES> (1,338) <INVENTORY> 3,882 <CURRENT-ASSETS> 61,217 <PP&E> 5,142 <DEPRECIATION> 0 <TOTAL-ASSETS> 72,899 <CURRENT-LIABILITIES> 12,808 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 131 <OTHER-SE> 59,960 <TOTAL-LIABILITY-AND-EQUITY> 72,899 <SALES> 53,495 <TOTAL-REVENUES> 53,495 <CGS> 19,396 <TOTAL-COSTS> 19,396 <OTHER-EXPENSES> 43,593 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> (165) <INCOME-PRETAX> (7,782) <INCOME-TAX> (3,050) <INCOME-CONTINUING> (4,732) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (4,732) <EPS-PRIMARY> (0.37) <EPS-DILUTED> (0.37)<F1> <FN> <F1>ADDITIONAL CURRENT ASSET - DEFERRED TAXES 2,619 ADDITIONAL CURRENT ASSET - OTHER 941 OTHER ASSET - DEFERRED TAXES 4,341 OTHER ASSETS - NET 2,199 INTEREST INCOME 1,877 </FN>