<ARTICLE> 5 <MULTIPLIER> 1,000 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> MAR-31-1998 <CASH> 28,870 <SECURITIES> 10,732 <RECEIVABLES> 25,801 <ALLOWANCES> 2,519 <INVENTORY> 13,761 <CURRENT-ASSETS> 84,832 <PP&E> 27,209 <DEPRECIATION> 23,346 <TOTAL-ASSETS> 90,254 <CURRENT-LIABILITIES> 22,680 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 66,037 <OTHER-SE> 1,400 <TOTAL-LIABILITY-AND-EQUITY> 90,254 <SALES> 30,664<F1> <TOTAL-REVENUES> 30,664 <CGS> 19,810<F2> <TOTAL-COSTS> 19,810 <OTHER-EXPENSES> 12,017 <LOSS-PROVISION> (26) <INTEREST-EXPENSE> 5 <INCOME-PRETAX> (752) <INCOME-TAX> (263) <INCOME-CONTINUING> (489) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (489) <EPS-PRIMARY> (0.03) <EPS-DILUTED> (0.03) <FN> <F1>INCLUDES REVENUES FROM LICENSING OF SOFTWARE AND SUPPORT SERVICES. <F2>INCLUDES COSTS FROM LICENSING OF SOFTWARE AND SUPPORT SERVICES. </FN>