<ARTICLE> 5 <MULTIPLIER> 1,000 <CURRENCY> U.S. DOLLARS <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> DEC-31-1998 <EXCHANGE-RATE> 1 <CASH> 26,567 <SECURITIES> 0 <RECEIVABLES> 3,002 <ALLOWANCES> 100 <INVENTORY> 121 <CURRENT-ASSETS> 29,842 <PP&E> 13,181 <DEPRECIATION> 2,861 <TOTAL-ASSETS> 40,162 <CURRENT-LIABILITIES> 1,028 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 209 <OTHER-SE> 38,925 <TOTAL-LIABILITY-AND-EQUITY> 40,162 <SALES> 3,093 <TOTAL-REVENUES> 11,796 <CGS> 1,394 <TOTAL-COSTS> 0 <OTHER-EXPENSES> 14,354 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> (2,249) <INCOME-TAX> 0 <INCOME-CONTINUING> (2,249) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (2,249) <EPS-PRIMARY> (0.11) <EPS-DILUTED> (0.11)