<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> 3,683 <SECURITIES> 0 <RECEIVABLES> 12,961 <ALLOWANCES> (1,103) <INVENTORY> 9,709 <CURRENT-ASSETS> 56,751 <PP&E> 29,253 <DEPRECIATION> (22,847) <TOTAL-ASSETS> 65,182 <CURRENT-LIABILITIES> 19,073 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 6,222 <COMMON> 99,550 <OTHER-SE> (59,737) <TOTAL-LIABILITY-AND-EQUITY> 65,182 <SALES> 7,238 <TOTAL-REVENUES> 7,238 <CGS> 6,941 <TOTAL-COSTS> 14,496 <OTHER-EXPENSES> (72) <LOSS-PROVISION> 0 <INTEREST-EXPENSE> (84) <INCOME-PRETAX> (7,414) <INCOME-TAX> 0 <INCOME-CONTINUING> (7,414) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (9,243)<F1> <EPS-PRIMARY> (0.54) <EPS-DILUTED> (0.54) <FN> <F1>Deemed dividends on preferred stock = (1,829) </FN>