<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
QUALIFIED PERIOD ENDED OCTOBER 31, 1997 AND IS QUALIFIED BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          JUL-31-1998
<PERIOD-START>                             AUG-01-1997
<PERIOD-END>                               OCT-31-1997
<CASH>                                          30,024
<SECURITIES>                                         0
<RECEIVABLES>                                   27,592
<ALLOWANCES>                                  (10,029)
<INVENTORY>                                      1,593
<CURRENT-ASSETS>                                50,441
<PP&E>                                           9,323
<DEPRECIATION>                                 (6,459)
<TOTAL-ASSETS>                                  67,314
<CURRENT-LIABILITIES>                              826
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           233
<OTHER-SE>                                      90,854
<TOTAL-LIABILITY-AND-EQUITY>                    67,314
<SALES>                                          9,314
<TOTAL-REVENUES>                                 9,314
<CGS>                                            3,478
<TOTAL-COSTS>                                    9,185
<OTHER-EXPENSES>                                 3,391
<LOSS-PROVISION>                                 2,316
<INTEREST-EXPENSE>                               (439)
<INCOME-PRETAX>                                    568
<INCOME-TAX>                                        45
<INCOME-CONTINUING>                                523
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                       523
<EPS-PRIMARY>                                      .02
<EPS-DILUTED>                                      .02