<ARTICLE> 5 <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> SEP-30-1998 <CASH> 21,907 <SECURITIES> 26,667 <RECEIVABLES> 10,526 <ALLOWANCES> 1,831 <INVENTORY> 6,860 <CURRENT-ASSETS> 70,490 <PP&E> 9,227 <DEPRECIATION> 1,941 <TOTAL-ASSETS> 79,743 <CURRENT-LIABILITIES> 25,493 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 18 <OTHER-SE> 52,325 <TOTAL-LIABILITY-AND-EQUITY> 79,743 <SALES> 36,938 <TOTAL-REVENUES> 49,909 <CGS> 14,758 <TOTAL-COSTS> 20,949 <OTHER-EXPENSES> 36,741 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> (1,969) <INCOME-PRETAX> (5,812) <INCOME-TAX> 364 <INCOME-CONTINUING> (6,176) <DISCONTINUED> 0 <EXTRAORDINARY> (226) <CHANGES> 0 <NET-INCOME> (6,402) <EPS-PRIMARY> (0.36) <EPS-DILUTED> (0.36)