<ARTICLE> 5 <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-START> JAN-01-1997 <PERIOD-END> DEC-31-1997 <CASH> 9,693,000 <SECURITIES> 5,057,000 <RECEIVABLES> 6,518,000 <ALLOWANCES> 1,252,000 <INVENTORY> 433,000 <CURRENT-ASSETS> 21,116,000 <PP&E> 10,721,000 <DEPRECIATION> 3,046,000 <TOTAL-ASSETS> 30,680,000 <CURRENT-LIABILITIES> 5,478,000 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 6,000 <OTHER-SE> 23,684,000 <TOTAL-LIABILITY-AND-EQUITY> 30,680,000 <SALES> 26,073,000 <TOTAL-REVENUES> 26,073,000 <CGS> 20,182,000 <TOTAL-COSTS> 20,182,000 <OTHER-EXPENSES> 4,626,000 <LOSS-PROVISION> (962,000) <INTEREST-EXPENSE> (933,000) <INCOME-PRETAX> (657,000) <INCOME-TAX> 0 <INCOME-CONTINUING> (657,000) <DISCONTINUED> 0 <EXTRAORDINARY> (1,441,000) <CHANGES> 0 <NET-INCOME> (2,098,000) <EPS-PRIMARY> (.45) <EPS-DILUTED> (.45)