<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE QUALIFIED PERIOD ENDED JANUARY 31, 1998 AND IS QUALIFIED BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> JUL-31-1998 <PERIOD-START> AUG-01-1997 <PERIOD-END> JAN-31-1998 <CASH> 31,010 <SECURITIES> 0 <RECEIVABLES> 29,747 <ALLOWANCES> (11,646) <INVENTORY> 1,659 <CURRENT-ASSETS> 52,137 <PP&E> 9,262 <DEPRECIATION> (6,615) <TOTAL-ASSETS> 68,628 <CURRENT-LIABILITIES> 2,330 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 246 <OTHER-SE> 90,942 <TOTAL-LIABILITY-AND-EQUITY> 68,628 <SALES> 19,640 <TOTAL-REVENUES> 19,640 <CGS> 7,322 <TOTAL-COSTS> 19,406 <OTHER-EXPENSES> 7,101 <LOSS-PROVISION> 4,983 <INTEREST-EXPENSE> (895) <INCOME-PRETAX> 1,129 <INCOME-TAX> 48 <INCOME-CONTINUING> 1,081 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 1,081 <EPS-PRIMARY> .04 <EPS-DILUTED> .04