<ARTICLE> 5
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-START>                             JAN-01-1998
<PERIOD-END>                               SEP-30-1998
<CASH>                                          16,558
<SECURITIES>                                    12,157
<RECEIVABLES>                                   20,263
<ALLOWANCES>                                     1,717
<INVENTORY>                                     12,841
<CURRENT-ASSETS>                                68,216
<PP&E>                                          27,997
<DEPRECIATION>                                  24,760
<TOTAL-ASSETS>                                  73,572
<CURRENT-LIABILITIES>                           17,777
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        57,272
<OTHER-SE>                                     (1,569)
<TOTAL-LIABILITY-AND-EQUITY>                    73,572
<SALES>                                         79,444<F1>
<TOTAL-REVENUES>                                79,444
<CGS>                                           50,075<F2>
<TOTAL-COSTS>                                   50,075
<OTHER-EXPENSES>                                36,865
<LOSS-PROVISION>                                    22
<INTEREST-EXPENSE>                                  12
<INCOME-PRETAX>                                (4,116)
<INCOME-TAX>                                     (658)
<INCOME-CONTINUING>                            (3,458)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   (3,458)
<EPS-PRIMARY>                                   (0.21)
<EPS-DILUTED>                                   (0.21)
<FN>
<F1>Includes revenues from licensing of software and support services.
<F2>Includes costs from licensing of software and support services.
</FN>