<ARTICLE> 5 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-END> SEP-30-1998 <CASH> 3,147 <SECURITIES> 9,796 <RECEIVABLES> 471 <ALLOWANCES> 50 <INVENTORY> 225 <CURRENT-ASSETS> 13,984 <PP&E> 4,770 <DEPRECIATION> 2,226 <TOTAL-ASSETS> 17,127 <CURRENT-LIABILITIES> 1,204 <BONDS> 188 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 127 <OTHER-SE> 15,608 <TOTAL-LIABILITY-AND-EQUITY> 17,127 <SALES> 623 <TOTAL-REVENUES> 623 <CGS> 217 <TOTAL-COSTS> 217 <OTHER-EXPENSES> 2,420 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 171 <INCOME-PRETAX> (1,843) <INCOME-TAX> 0 <INCOME-CONTINUING> (1,843) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (1,843) <EPS-PRIMARY> (.15) <EPS-DILUTED> (.15)