<ARTICLE> 5 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> MAR-31-1998 <CASH> 1,555,000 <SECURITIES> 0 <RECEIVABLES> 4,045,000 <ALLOWANCES> 1,097,000 <INVENTORY> 2,867,000 <CURRENT-ASSETS> 14,174,000 <PP&E> 5,165,000 <DEPRECIATION> 1,282,000 <TOTAL-ASSETS> 26,119,000 <CURRENT-LIABILITIES> 15,659,000 <BONDS> 9,218,000 <PREFERRED-MANDATORY> 0 <PREFERRED> 66,000 <COMMON> 2,000 <OTHER-SE> 1,174,000 <TOTAL-LIABILITY-AND-EQUITY> 26,119,000 <SALES> 2,693,000 <TOTAL-REVENUES> 2,693,000 <CGS> 2,130,000 <TOTAL-COSTS> 2,130,000 <OTHER-EXPENSES> 2,144,000 <LOSS-PROVISION> 35,000 <INTEREST-EXPENSE> 147,000 <INCOME-PRETAX> (1,763,000) <INCOME-TAX> 0 <INCOME-CONTINUING> 1,763,000 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (1,763,000) <EPS-PRIMARY> (0.28) <EPS-DILUTED> (0.30)