<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>