<ARTICLE> 5 <MULTIPLIER> 1,000 <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> MAR-31-1998 <PERIOD-START> APR-01-1997 <PERIOD-END> DEC-31-1997 <CASH> 3,408 <SECURITIES> 23,070 <RECEIVABLES> 1,383 <ALLOWANCES> 43 <INVENTORY> 1,588 <CURRENT-ASSETS> 30,468 <PP&E> 7,303 <DEPRECIATION> (4,638) <TOTAL-ASSETS> 33,544 <CURRENT-LIABILITIES> 10,411 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 1 <COMMON> 15 <OTHER-SE> 23,117 <TOTAL-LIABILITY-AND-EQUITY> 33,544 <SALES> 4,121 <TOTAL-REVENUES> 10,158 <CGS> 1,408 <TOTAL-COSTS> 18,891 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 63<F1> <INCOME-PRETAX> (8,796) <INCOME-TAX> 200 <INCOME-CONTINUING> (8,996) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (8,996) <EPS-PRIMARY> (0.60) <EPS-DILUTED> (0.60) <FN> <F1>net of interest income </FN>