<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS AND RELATED NOTES FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> YEAR YEAR <FISCAL-YEAR-END> DEC-31-1998 DEC-31-1997 <PERIOD-START> JAN-01-1998 JAN-01-1997 <PERIOD-END> DEC-31-1998 DEC-31-1997 <CASH> 4,452 5,395 <SECURITIES> 0 4,890 <RECEIVABLES> 3,194 1,626 <ALLOWANCES> 115 29 <INVENTORY> 3,787 1,424 <CURRENT-ASSETS> 11,932 13,667 <PP&E> 2,976 2,149 <DEPRECIATION> 1,186 804 <TOTAL-ASSETS> 15,257 15,168 <CURRENT-LIABILITIES> 4,759 2,601 <BONDS> 4,262 354 <PREFERRED-MANDATORY> 45,995 38,871 <PREFERRED> 1,567 1,567 <COMMON> 0 0 <OTHER-SE> (43,406) (28,011) <TOTAL-LIABILITY-AND-EQUITY> 15,257 15,168 <SALES> 10,555 6,221 <TOTAL-REVENUES> 10,555 6,221 <CGS> 5,809 3,228 <TOTAL-COSTS> 5,809 3,228 <OTHER-EXPENSES> 18,702 12,344 <LOSS-PROVISION> 0 0 <INTEREST-EXPENSE> (117) 61 <INCOME-PRETAX> (13,746) (9,156) <INCOME-TAX> 1 1 <INCOME-CONTINUING> 0 0 <DISCONTINUED> 0 0 <EXTRAORDINARY> 0 0 <CHANGES> 0 0 <NET-INCOME> (13,747) (9,157) <EPS-PRIMARY> (60.62) (59.36) <EPS-DILUTED> (60.62) (59.36)