<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ANNUAL FORM 10-K AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-START> JAN-01-1997 <PERIOD-END> DEC-31-1997 <CASH> 3,103 <SECURITIES> 2,233 <RECEIVABLES> 785 <ALLOWANCES> (224) <INVENTORY> 0 <CURRENT-ASSETS> 6,092 <PP&E> 2,238 <DEPRECIATION> (1,452) <TOTAL-ASSETS> 7,237 <CURRENT-LIABILITIES> 960 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 71,515 <OTHER-SE> (150) <TOTAL-LIABILITY-AND-EQUITY> 7,237 <SALES> 876 <TOTAL-REVENUES> 5,620 <CGS> 1,266 <TOTAL-COSTS> 5,493 <OTHER-EXPENSES> 9,780 <LOSS-PROVISION> 118 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> (9,334) <INCOME-TAX> 0 <INCOME-CONTINUING> (9,344) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (9,334) <EPS-PRIMARY> (.37) <EPS-DILUTED> (.37)