<ARTICLE> 5 <MULTIPLIER> 1,000 <CURRENCY> U.S. DOLLARS <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> SEP-30-1998 <EXCHANGE-RATE> 1 <CASH> 21,276 <SECURITIES> 27,787 <RECEIVABLES> 8,445 <ALLOWANCES> (1,339) <INVENTORY> 3,571 <CURRENT-ASSETS> 63,828 <PP&E> 6,199 <DEPRECIATION> 0 <TOTAL-ASSETS> 76,497 <CURRENT-LIABILITIES> 14,988 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 133 <OTHER-SE> 61,376 <TOTAL-LIABILITY-AND-EQUITY> 76,497 <SALES> 39,477 <TOTAL-REVENUES> 39,477 <CGS> 15,365 <TOTAL-COSTS> 15,365 <OTHER-EXPENSES> 24,686 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 934 <INCOME-TAX> 672 <INCOME-CONTINUING> 262 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 262 <EPS-PRIMARY> 0.02 <EPS-DILUTED> 0.02 <FN> ADDITIONAL CURRENT ASSET - DEFERRED TAX 2,619 ADDITIONAL CURRENT ASSET - OTHER 1,469 OTHER ASSET - DEFERRED TAXES 4,341 OTHER ASSETS - NET 2,129 INTEREST INCOME 1,508 </FN>