<ARTICLE> 5 <MULTIPLIER> 1,000 <CURRENCY> U.S. DOLLARS <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> JUL-31-1998 <PERIOD-START> AUG-01-1997 <PERIOD-END> OCT-31-1997 <EXCHANGE-RATE> 1 <CASH> 19 <SECURITIES> 0 <RECEIVABLES> 4,588 <ALLOWANCES> 200 <INVENTORY> 11,977 <CURRENT-ASSETS> 16,646 <PP&E> 3,291 <DEPRECIATION> 2,362 <TOTAL-ASSETS> 18,648 <CURRENT-LIABILITIES> 12,417 <BONDS> 5,526 <PREFERRED-MANDATORY> 1,051 <PREFERRED> 0 <COMMON> 42 <OTHER-SE> (627) <TOTAL-LIABILITY-AND-EQUITY> 18,648 <SALES> 8,187 <TOTAL-REVENUES> 8,187 <CGS> 5,914 <TOTAL-COSTS> 7,747 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 469 <INCOME-PRETAX> (29) <INCOME-TAX> 0 <INCOME-CONTINUING> 0 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (29) <EPS-PRIMARY> (0.01) <EPS-DILUTED> (0.01)