<ARTICLE> 5 <RESTATED> <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-START> JAN-01-1997 <PERIOD-END> DEC-31-1997 <CASH> 3,643,000 <SECURITIES> 0 <RECEIVABLES> 1,035,000 <ALLOWANCES> (36,000) <INVENTORY> 0 <CURRENT-ASSETS> 4,894,825 <PP&E> 2,399,000 <DEPRECIATION> (474,710) <TOTAL-ASSETS> 7,200,000 <CURRENT-LIABILITIES> 2,257,000 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 5,700,000 <OTHER-SE> (2,978,000) <TOTAL-LIABILITY-AND-EQUITY> 7,200,000 <SALES> 12,897,000 <TOTAL-REVENUES> 12,897,000 <CGS> 3,389,000 <TOTAL-COSTS> 15,025,000 <OTHER-EXPENSES> (1,000) <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 155,000 <INCOME-PRETAX> (2,282,000) <INCOME-TAX> 104,000 <INCOME-CONTINUING> (2,386,000) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (2,386,000) <EPS-BASIC> (0.21) <EPS-DILUTED> (0.21)