<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE INCOME STATEMENT FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 1998, AND THE BALANCE SHEET AS OF SEPTEMBER 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> SEP-30-1998 <CASH> 5,575 <SECURITIES> 7,546 <RECEIVABLES> 13,487 <ALLOWANCES> 502 <INVENTORY> 15,017 <CURRENT-ASSETS> 46,178 <PP&E> 21,374 <DEPRECIATION> 11,727 <TOTAL-ASSETS> 63,585 <CURRENT-LIABILITIES> 7,704 <BONDS> 468 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 74 <OTHER-SE> 53,403 <TOTAL-LIABILITY-AND-EQUITY> 63,585 <SALES> 19,575 <TOTAL-REVENUES> 26,372 <CGS> 8,239 <TOTAL-COSTS> 11,210 <OTHER-EXPENSES> 19,332 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 19 <INCOME-PRETAX> (3,552) <INCOME-TAX> (162) <INCOME-CONTINUING> (3,390) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (3,390) <EPS-PRIMARY> (.45) <EPS-DILUTED> (.45)