<ARTICLE> 5 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-END> MAR-31-1998 <CASH> 9,952,000 <SECURITIES> 3,005 <RECEIVABLES> 944,000 <ALLOWANCES> (240,000) <INVENTORY> 3,032,000 <CURRENT-ASSETS> 17,126,000 <PP&E> 10,766 <DEPRECIATION> (4,835) <TOTAL-ASSETS> 23,759,000 <CURRENT-LIABILITIES> 4,540,000 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 75,235,000 <OTHER-SE> (56,119,000) <TOTAL-LIABILITY-AND-EQUITY> 23,759 <SALES> 365 <TOTAL-REVENUES> 945 <CGS> 688,000 <TOTAL-COSTS> 4,344,000 <OTHER-EXPENSES> (1,000) <LOSS-PROVISION> 0 <INTEREST-EXPENSE> (150,000) <INCOME-PRETAX> (3,936,000) <INCOME-TAX> 0 <INCOME-CONTINUING> (3,396,000) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (3,936,000) <EPS-PRIMARY> (.21) <EPS-DILUTED> (.21)