<ARTICLE> 5 <MULTIPLIER> 1,000 <CURRENCY> US 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> 18,598 <SECURITIES> 28,565 <RECEIVABLES> 7,729 <ALLOWANCES> (1,338) <INVENTORY> 3,242 <CURRENT-ASSETS> 60,684<F1> <PP&E> 5,061 <DEPRECIATION> 0 <TOTAL-ASSETS> 72,216 <CURRENT-LIABILITIES> 12,850 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 132 <OTHER-SE> 59,234 <TOTAL-LIABILITY-AND-EQUITY> 72,216 <SALES> 11,753 <TOTAL-REVENUES> 11,753 <CGS> 5,004 <TOTAL-COSTS> 5,004 <OTHER-EXPENSES> 8,512 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> (1,298) <INCOME-TAX> 0 <INCOME-CONTINUING> (1,298) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (1,298) <EPS-PRIMARY> (0.10) <EPS-DILUTED> (0.10) <FN> <F1> ADDITIONAL CURRENT ASSET - DEFERRED TAX 2,619 ADDITIONAL CURRENT ASSET - OTHER 1,269 OTHER ASSET- DEFERRED TAXES 4,341 OTHER ASSETS - NET 2,130 INTEREST INCOME 465 </FN>