<ARTICLE> 5 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> JUL-31-1999 <PERIOD-END> OCT-31-1998 <CASH> $918,000 <SECURITIES> $1,017,000 <RECEIVABLES> $2,186,000 <ALLOWANCES> 0 <INVENTORY> $2,642,000 <CURRENT-ASSETS> $7,310,000 <PP&E> $3,190,000 <DEPRECIATION> 0 <TOTAL-ASSETS> $11,050,000 <CURRENT-LIABILITIES> $2,043,000 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> $1,000 <OTHER-SE> $8,892,000 <TOTAL-LIABILITY-AND-EQUITY> $11,050,000 <SALES> $3,659,000 <TOTAL-REVENUES> $3,626,000 <CGS> $1,716,000 <TOTAL-COSTS> $3,307,000 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> $7,000 <INCOME-PRETAX> $319,000 <INCOME-TAX> $32,000 <INCOME-CONTINUING> $287,000 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> $287,000 <EPS-PRIMARY> .26 <EPS-DILUTED> .24