<ARTICLE> 5 <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1996 <PERIOD-START> JAN-01-1996 <PERIOD-END> SEP-30-1996 <CASH> 1,727,000 <SECURITIES> 0 <RECEIVABLES> 8,689,000 <ALLOWANCES> 1,770,000 <INVENTORY> 1,295,000 <CURRENT-ASSETS> 10,971,000 <PP&E> 958,000 <DEPRECIATION> 145,000 <TOTAL-ASSETS> 11,784,000 <CURRENT-LIABILITIES> 9,706,000 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 10,500,000 <COMMON> 218,000 <OTHER-SE> (9,102,000) <TOTAL-LIABILITY-AND-EQUITY> 11,784,000 <SALES> 22,680,000 <TOTAL-REVENUES> 22,680,000 <CGS> 7,280,000 <TOTAL-COSTS> 7,280,000 <OTHER-EXPENSES> 18,927,000 <LOSS-PROVISION> 1,003,000 <INTEREST-EXPENSE> 68,000 <INCOME-PRETAX> (3,550,000) <INCOME-TAX> 0 <INCOME-CONTINUING> (3,550,000) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (3,550,000) <EPS-PRIMARY> (0.45) <EPS-DILUTED> (0.45)