<ARTICLE> 5 <MULTIPLIER> 1,000 <PERIOD-TYPE> 6-MOS <FISCAL-YEAR-END> MAR-31-1999 <PERIOD-START> APR-01-1998 <PERIOD-END> SEP-30-1998 <CASH> 882 <SECURITIES> 13,043 <RECEIVABLES> 2,786 <ALLOWANCES> 32 <INVENTORY> 1,439 <CURRENT-ASSETS> 19,048 <PP&E> 8,139 <DEPRECIATION> 4,697 <TOTAL-ASSETS> 22,881 <CURRENT-LIABILITIES> 7,696 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 1 <COMMON> 15 <OTHER-SE> 13,343 <TOTAL-LIABILITY-AND-EQUITY> 22,881 <SALES> 2,347 <TOTAL-REVENUES> 6,790 <CGS> 618 <TOTAL-COSTS> 13,522 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> (412)<F1> <INCOME-PRETAX> 0 <INCOME-TAX> 0 <INCOME-CONTINUING> 0 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (6,320) <EPS-PRIMARY> (0.477)<F2> <EPS-DILUTED> (0.477)<F2> <FN> <F1>Represents interest income, net of interest expense. <F2>Includes $972 of convertible preferred stock dividends payable. </FN>