<ARTICLE> 5 <PERIOD-TYPE> 3-MOS 3-MOS <FISCAL-YEAR-END> DEC-31-1998 DEC-31-1997 <PERIOD-START> JAN-01-1998 JAN-01-1997 <PERIOD-END> MAR-31-1998 MAR-31-1997 <CASH> 5,650,000 8,745,000 <SECURITIES> 3,574,000 1,359,000 <RECEIVABLES> 16,866,000 20,355,000 <ALLOWANCES> 1,645,000 2,286,000 <INVENTORY> 0 0 <CURRENT-ASSETS> 29,537,000 33,156,000 <PP&E> 9,326,000 8,886,000 <DEPRECIATION> 5,475,000 4,928,000 <TOTAL-ASSETS> 37,939,000 41,773,000 <CURRENT-LIABILITIES> 23,777,000 25,356,000 <BONDS> 0 0 <PREFERRED-MANDATORY> 0 0 <PREFERRED> 0 0 <COMMON> 134,000 134,000 <OTHER-SE> 11,956,000 14,083,000 <TOTAL-LIABILITY-AND-EQUITY> 37,939,000 41,773,000 <SALES> 3,852,000 5,098,000 <TOTAL-REVENUES> 13,360,000 13,795,000 <CGS> 686,000 1,332,000 <TOTAL-COSTS> 7,070,000 7,995,000 <OTHER-EXPENSES> 8,510,000 21,631,000 <LOSS-PROVISION> 50,000 785,000 <INTEREST-EXPENSE> (44,000) 48,000 <INCOME-PRETAX> (2,226,000) (16,664,000) <INCOME-TAX> 0 0 <INCOME-CONTINUING> (2,226,000) (16,664,000) <DISCONTINUED> 0 0 <EXTRAORDINARY> 0 0 <CHANGES> 0 0 <NET-INCOME> (2,226,000) (16,664,000) <EPS-PRIMARY> (.17) (1.26) <EPS-DILUTED> (.17) (1.26)