<ARTICLE> 5 <MULTIPLIER> 1,000 <PERIOD-TYPE> 12-MOS 9-MOS <FISCAL-YEAR-END> DEC-31-1996 DEC-31-1997 <PERIOD-START> JAN-01-1996 JAN-01-1997 <PERIOD-END> DEC-31-1996 SEP-30-1997 <CASH> 4,781 3,363 <SECURITIES> 11,418 5,127 <RECEIVABLES> 5,164 5,654 <ALLOWANCES> 265 298 <INVENTORY> 809 1,141 <CURRENT-ASSETS> 22,241 15,279 <PP&E> 1,236 1,650 <DEPRECIATION> 423 633 <TOTAL-ASSETS> 24,009 17,424 <CURRENT-LIABILITIES> 2,611 2,201 <BONDS> 0 0 <PREFERRED-MANDATORY> 0 0 <PREFERRED> 0 0 <COMMON> 7 8 <OTHER-SE> 21,391 15,215 <TOTAL-LIABILITY-AND-EQUITY> 24,009 17,424 <SALES> 13,605 5,638 <TOTAL-REVENUES> 13,605 5,638 <CGS> 12,002 6,200 <TOTAL-COSTS> 12,002 6,200 <OTHER-EXPENSES> 6,916 6,231 <LOSS-PROVISION> 190 175 <INTEREST-EXPENSE> 500 550 <INCOME-PRETAX> (4,813) (6,243) <INCOME-TAX> (63) (50) <INCOME-CONTINUING> (4,876) (6,293) <DISCONTINUED> 0 0 <EXTRAORDINARY> 0 0 <CHANGES> 0 0 <NET-INCOME> (4,876) (6,293) <EPS-PRIMARY> (0.73) (0.84) <EPS-DILUTED> (0.73) (0.84)<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.