<ARTICLE> 5 <MULTIPLIER> 1,000 <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-END> SEP-30-1998 <CASH> 19,411 <SECURITIES> 8,840 <RECEIVABLES> 1,052 <ALLOWANCES> 44 <INVENTORY> 207 <CURRENT-ASSETS> 29,723 <PP&E> 3,543 <DEPRECIATION> 409 <TOTAL-ASSETS> 32,961 <CURRENT-LIABILITIES> 3,616 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 167 <OTHER-SE> 29,178 <TOTAL-LIABILITY-AND-EQUITY> 32,961 <SALES> 11,504 <TOTAL-REVENUES> 11,504 <CGS> 9,610 <TOTAL-COSTS> 9,610 <OTHER-EXPENSES> 11,430 <LOSS-PROVISION> 175 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> (9,292) <INCOME-TAX> 0 <INCOME-CONTINUING> (9,292) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (9,292) <EPS-PRIMARY> (.74) <EPS-DILUTED> (.74)