<ARTICLE> 5 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> SEP-30-1998 <PERIOD-START> OCT-01-1997 <PERIOD-END> DEC-31-1997 <CASH> 2,662,731 <SECURITIES> 3,702,904 <RECEIVABLES> 5,580,004 <ALLOWANCES> 913,332 <INVENTORY> 3,758,025 <CURRENT-ASSETS> 17,435,000 <PP&E> 14,147,419 <DEPRECIATION> 9,124,155 <TOTAL-ASSETS> 22,853,000 <CURRENT-LIABILITIES> 7,702,000 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 16,851 <COMMON> 0 <OTHER-SE> 14,259,350 <TOTAL-LIABILITY-AND-EQUITY> 22,853,000 <SALES> 9,406,000 <TOTAL-REVENUES> 9,406,000 <CGS> 8,852,000 <TOTAL-COSTS> 9,868,000 <OTHER-EXPENSES> (13,000) <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 84,000 <INCOME-PRETAX> (462,000) <INCOME-TAX> (157,000) <INCOME-CONTINUING> (305,000) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (305,000) <EPS-PRIMARY> (.09) <EPS-DILUTED> (.09)