<ARTICLE> 5 <MULTIPLIER> 1,000 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> MAR-31-1998 <CASH> 4,355 <SECURITIES> 0 <RECEIVABLES> 4,993 <ALLOWANCES> 0 <INVENTORY> 3,425 <CURRENT-ASSETS> 13,056 <PP&E> 4,737 <DEPRECIATION> 0 <TOTAL-ASSETS> 23,759 <CURRENT-LIABILITIES> 7,222 <BONDS> 6,943 <PREFERRED-MANDATORY> 0 <PREFERRED> 5,604 <COMMON> 58,234 <OTHER-SE> (54,243) <TOTAL-LIABILITY-AND-EQUITY> 23,759 <SALES> 5,685 <TOTAL-REVENUES> 5,685 <CGS> 3,138 <TOTAL-COSTS> 3,138 <OTHER-EXPENSES> 3,696 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 564 <INCOME-PRETAX> (1,627) <INCOME-TAX> 0 <INCOME-CONTINUING> (1,627) <DISCONTINUED> 0 <EXTRAORDINARY> (1,168) <CHANGES> 0 <NET-INCOME> (2,795) <EPS-PRIMARY> (0.11) <EPS-DILUTED> (0.11)