<ARTICLE> 5 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> JUL-31-1998 <PERIOD-START> AUG-01-1998 <PERIOD-END> OCT-31-1998 <CASH> 3,320,772 <SECURITIES> 0 <RECEIVABLES> 8,384,125 <ALLOWANCES> (571,785) <INVENTORY> 12,306,754 <CURRENT-ASSETS> 28,454,331 <PP&E> 8,696,138 <DEPRECIATION> (3,155,462) <TOTAL-ASSETS> 70,332,330 <CURRENT-LIABILITIES> 8,219,501 <BONDS> 1,338,636 <PREFERRED-MANDATORY> 31,387,056 <PREFERRED> 0 <COMMON> 35,302 <OTHER-SE> 29,341,835 <TOTAL-LIABILITY-AND-EQUITY> 70,322,330 <SALES> 16,468,558 <TOTAL-REVENUES> 16,502,808 <CGS> 7,858,646 <TOTAL-COSTS> 16,356,916 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 70,222 <INCOME-PRETAX> 159,508 <INCOME-TAX> (596,000) <INCOME-CONTINUING> 755,508 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 755,508 <EPS-PRIMARY> 0.02 <EPS-DILUTED> 0.02