<ARTICLE> 5 <MULTIPLIER> 1,000 <CURRENCY> U.S. DOLLARS <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> MAR-31-1998 <EXCHANGE-RATE> 1 <CASH> 36,969 <SECURITIES> 12,100 <RECEIVABLES> 8,859 <ALLOWANCES> 1,100 <INVENTORY> 0 <CURRENT-ASSETS> 63,101 <PP&E> 18,475 <DEPRECIATION> 11,207 <TOTAL-ASSETS> 90,064 <CURRENT-LIABILITIES> 18,790 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 340 <OTHER-SE> 70,934 <TOTAL-LIABILITY-AND-EQUITY> 90,064 <SALES> 7,699 <TOTAL-REVENUES> 10,928 <CGS> 1,180 <TOTAL-COSTS> 2,545 <OTHER-EXPENSES> 13,110 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> (3,717) <INCOME-TAX> 100 <INCOME-CONTINUING> (3,818) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (3,818) <EPS-PRIMARY> (.11) <EPS-DILUTED> (.11)