<ARTICLE> 5 <MULTIPLIER> 1,000 <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-END> DEC-31-1997 <CASH> 2,044 <SECURITIES> 24,076 <RECEIVABLES> 442 <ALLOWANCES> 0 <INVENTORY> 58 <CURRENT-ASSETS> 26,902 <PP&E> 4,861 <DEPRECIATION> 3,549 <TOTAL-ASSETS> 28,214 <CURRENT-LIABILITIES> 5,769 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 1 <COMMON> 14 <OTHER-SE> 22,430 <TOTAL-LIABILITY-AND-EQUITY> 28,214 <SALES> 374 <TOTAL-REVENUES> 10,405 <CGS> 194 <TOTAL-COSTS> 14,368 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> (2,452) <INCOME-TAX> 0 <INCOME-CONTINUING> (2,452) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (2,452) <EPS-PRIMARY> (.18) <EPS-DILUTED> (.18)