<ARTICLE> 5 <MULTIPLIER> 1,000 <PERIOD-TYPE> 6-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> JUN-30-1998 <CASH> 3,754 <SECURITIES> 0 <RECEIVABLES> 12,352 <ALLOWANCES> (497) <INVENTORY> 5,173 <CURRENT-ASSETS> 46,690 <PP&E> 24,979 <DEPRECIATION> (20,351) <TOTAL-ASSETS> 52,052 <CURRENT-LIABILITIES> 24,532 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 6,098 <COMMON> 99,779 <OTHER-SE> (78,393) <TOTAL-LIABILITY-AND-EQUITY> 52,052 <SALES> 20,208 <TOTAL-REVENUES> 20,208 <CGS> 18,659 <TOTAL-COSTS> 46,058 <OTHER-EXPENSES> (393) <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> (26,243) <INCOME-TAX> 0 <INCOME-CONTINUING> (26,243) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (28,146)<F1> <EPS-PRIMARY> (1.64) <EPS-DILUTED> (1.64) <FN> <F1>DEEMED DIVIDENDS ON PREFERRED STOCK = (1,903) </FN>