<ARTICLE> 5 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> MAR-31-1998 <CASH> 2,146,021 <SECURITIES> 7,882,673 <RECEIVABLES> 1,696,393 <ALLOWANCES> (563,143) <INVENTORY> 3,188,521 <CURRENT-ASSETS> 14,497,261 <PP&E> 6,170,880 <DEPRECIATION> (2,815,025) <TOTAL-ASSETS> 18,504,327 <CURRENT-LIABILITIES> 2,473,725 <BONDS> 173,606 <PREFERRED-MANDATORY> 0 <PREFERRED> 4 <COMMON> 119,192 <OTHER-SE> 15,737,799 <TOTAL-LIABILITY-AND-EQUITY> 18,504,327 <SALES> 1,042,227 <TOTAL-REVENUES> 1,042,227 <CGS> 699,608 <TOTAL-COSTS> 699,608 <OTHER-EXPENSES> 3,160,323 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 13,055 <INCOME-PRETAX> (2,765,021) <INCOME-TAX> 0 <INCOME-CONTINUING> (2,765,021) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (2,765,021) <EPS-PRIMARY> (0.245) <EPS-DILUTED> (0.245)