<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> 6408 <SECURITIES> 0 <RECEIVABLES> 10254 <ALLOWANCES> (245) <INVENTORY> 4685 <CURRENT-ASSETS> 22900 <PP&E> 25324 <DEPRECIATION> (20859) <TOTAL-ASSETS> 27835 <CURRENT-LIABILITIES> 7813 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 1324 <COMMON> 99778 <OTHER-SE> (81090) <TOTAL-LIABILITY-AND-EQUITY> 27835 <SALES> 27312 <TOTAL-REVENUES> 27312 <CGS> 22554 <TOTAL-COSTS> 55811 <OTHER-EXPENSES> (404) <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> (28903) <INCOME-TAX> 0 <INCOME-CONTINUING> (28903) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (30806)<F1> <EPS-PRIMARY> (1.79) <EPS-DILUTED> (1.79) <FN> <F1>Deemed dividends on preferred stock (1903) </FN>