<ARTICLE> 5 <LEGEND> This Schedule contains summary financial information extracted from financial statements included in our quarterly report for the period ending July 3, 1998 and is qualified in its entirety by reference to such financial statements. </LEGEND> <MULTIPLIER> 1 <CURRENCY> USD <PERIOD-TYPE> 6-MOS <FISCAL-YEAR-END> JAN-01-1999 <PERIOD-START> JAN-03-1998 <PERIOD-END> JUL-03-1998 <EXCHANGE-RATE> 1 <CASH> 9,098,000 <SECURITIES> 30,067,000 <RECEIVABLES> 2,280,000 <ALLOWANCES> (287,000) <INVENTORY> 771,000 <CURRENT-ASSETS> 43,104,000 <PP&E> 5,977,000 <DEPRECIATION> (2,337,000) <TOTAL-ASSETS> 58,969,000 <CURRENT-LIABILITIES> 5,947,000 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 103,375,000 <OTHER-SE> (53,596,000) <TOTAL-LIABILITY-AND-EQUITY> 58,969,000 <SALES> 6,779,000 <TOTAL-REVENUES> 6,779,000 <CGS> 3,302,000 <TOTAL-COSTS> 3,302,000 <OTHER-EXPENSES> 16,349,000 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 191,000 <INCOME-PRETAX> (11,580,000) <INCOME-TAX> 0 <INCOME-CONTINUING> (11,580,000) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (11,580,000) <EPS-PRIMARY> (.84) <EPS-DILUTED> (.84)