<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED BALANCE SHEETS AND CONSOLIDATED STATEMENTS OF INCOME FOUND IN THE COMPANY'S FORM 10-Q FOR THE QUARTER ENDED JULY 31,1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> OCT-31-1998 <PERIOD-END> JUL-31-1998 <CASH> 880 <SECURITIES> 0 <RECEIVABLES> 18,081 <ALLOWANCES> 802 <INVENTORY> 775 <CURRENT-ASSETS> 20,364 <PP&E> 1,240 <DEPRECIATION> 4,595 <TOTAL-ASSETS> 29,022 <CURRENT-LIABILITIES> 26,524 <BONDS> 3,050 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 64 <OTHER-SE> (1,204) <TOTAL-LIABILITY-AND-EQUITY> 29,022 <SALES> 28,881 <TOTAL-REVENUES> 28,881 <CGS> 4,352 <TOTAL-COSTS> 4,352 <OTHER-EXPENSES> 24,793 <LOSS-PROVISION> 561 <INTEREST-EXPENSE> 1,369 <INCOME-PRETAX> (1,831) <INCOME-TAX> 0 <INCOME-CONTINUING> 0 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (1,831) <EPS-PRIMARY> (0.29) <EPS-DILUTED> (0.29)