<ARTICLE> 5 <RESTATED> <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> DEC-31-1998 <CASH> 14,060,000 <SECURITIES> 0 <RECEIVABLES> 4,782,000 <ALLOWANCES> (398,000) <INVENTORY> 0 <CURRENT-ASSETS> 19,022,000 <PP&E> 5,477,000 <DEPRECIATION> (2,024,000) <TOTAL-ASSETS> 38,747,000 <CURRENT-LIABILITIES> 8,764,000 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 53,520,000 <OTHER-SE> (24,126,000) <TOTAL-LIABILITY-AND-EQUITY> 38,747,000 <SALES> 18,149,000 <TOTAL-REVENUES> 18,149,000 <CGS> 4,302,000 <TOTAL-COSTS> 32,860,000 <OTHER-EXPENSES> 317,000 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> (226,000) <INCOME-PRETAX> (14,802,000) <INCOME-TAX> (11,000) <INCOME-CONTINUING> (14,791,000) <DISCONTINUED> 0 <EXTRAORDINARY> 476,000 <CHANGES> 0 <NET-INCOME> (15,267,000) <EPS-BASIC> (1.21) <EPS-DILUTED> (1.21)