<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE JULY 31, 1997 AUDITED FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <PERIOD-TYPE> 12-MOS 12-MOS <FISCAL-YEAR-END> JUL-31-1997 JUL-31-1996 <PERIOD-START> AUG-01-1996 AUG-01-1995 <PERIOD-END> JUL-31-1997 JUL-31-1996 <CASH> 107,530 16,975 <SECURITIES> 0 0 <RECEIVABLES> 427,465 728,114 <ALLOWANCES> 70,070 190,669 <INVENTORY> 493,466 506,995 <CURRENT-ASSETS> 996,623 1,093,040 <PP&E> 1,521,522 1,260,831 <DEPRECIATION> 800,501 373,589 <TOTAL-ASSETS> 2,742,488 3,203,702 <CURRENT-LIABILITIES> 2,778,067 2,533,588 <BONDS> 0 0 <PREFERRED-MANDATORY> 0 0 <PREFERRED> 887,500 1,287,500 <COMMON> 5,913,415 5,454,040 <OTHER-SE> (7,800,039) (6,408,498) <TOTAL-LIABILITY-AND-EQUITY> 2,742,488 3,203,702 <SALES> 3,796,432 3,062,948 <TOTAL-REVENUES> 3,796,432 3,062,948 <CGS> 3,064,863 2,411,017 <TOTAL-COSTS> 3,064,863 2,411,017 <OTHER-EXPENSES> 1,928,959 2,078,425 <LOSS-PROVISION> (1,197,390) (1,426,494) <INTEREST-EXPENSE> 192,551 146,887 <INCOME-PRETAX> (1,389,941) (1,573,381) <INCOME-TAX> 1,600 1,600 <INCOME-CONTINUING> (1,391,541) (1,574,981) <DISCONTINUED> 0 0 <EXTRAORDINARY> 0 0 <CHANGES> 0 0 <NET-INCOME> (1,391,541) (1,574,981) <EPS-PRIMARY> (0.24) (0.33) <EPS-DILUTED> 0 0