<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>