<ARTICLE> 5 <MULTIPLIER> 1,000 <PERIOD-TYPE> 12-MOS 6-MOS <FISCAL-YEAR-END> DEC-31-1996 DEC-31-1997 <PERIOD-START> JAN-01-1996 JAN-01-1997 <PERIOD-END> DEC-31-1996 JUN-30-1997 <CASH> 4,781 3,850 <SECURITIES> 11,418 8,504 <RECEIVABLES> 5,164 4,287 <ALLOWANCES> 265 265 <INVENTORY> 809 997 <CURRENT-ASSETS> 22,241 17,725 <PP&E> 1,236 1,466 <DEPRECIATION> 423 543 <TOTAL-ASSETS> 24,009 19,725 <CURRENT-LIABILITIES> 2,611 2,469 <BONDS> 0 0 <PREFERRED-MANDATORY> 0 0 <PREFERRED> 0 0 <COMMON> 7 8 <OTHER-SE> 21,391 17,248 <TOTAL-LIABILITY-AND-EQUITY> 24,009 19,725 <SALES> 13,605 3,334 <TOTAL-REVENUES> 13,605 3,334 <CGS> 12,002 3,889 <TOTAL-COSTS> 12,002 3,889 <OTHER-EXPENSES> 6,916 4,052 <LOSS-PROVISION> 190 65 <INTEREST-EXPENSE> 500 397 <INCOME-PRETAX> (4,813) (4,210) <INCOME-TAX> (63) (33) <INCOME-CONTINUING> (4,876) (4,243) <DISCONTINUED> 0 0 <EXTRAORDINARY> 0 0 <CHANGES> 0 0 <NET-INCOME> (4,876) (4,243) <EPS-PRIMARY> (0.73) (0.57) <EPS-DILUTED> (0.73) (0.57)<FN> <FN> Per share information in 1996 has been retroactively adjusted to reflect a one for three reverse stock split that was approved in May, 1996. </FN>