<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE SHEET AND STATEMENT OF OPERATIONS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> MAR-31-1999 <PERIOD-START> APR-01-1998 <PERIOD-END> DEC-31-1998 <CASH> 1,350 <SECURITIES> 9,050 <RECEIVABLES> 3,614 <ALLOWANCES> (32) <INVENTORY> 1,425 <CURRENT-ASSETS> 16,239 <PP&E> 8,304 <DEPRECIATION> (5,002) <TOTAL-ASSETS> 19,926 <CURRENT-LIABILITIES> 7,970 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 1 <COMMON> 15 <OTHER-SE> 9,680 <TOTAL-LIABILITY-AND-EQUITY> 19,926 <SALES> 3,774 <TOTAL-REVENUES> 10,983 <CGS> 977 <TOTAL-COSTS> 21,130 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> (585)<F1> <INCOME-PRETAX> 0 <INCOME-TAX> 0 <INCOME-CONTINUING> 0 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (9,562) <EPS-PRIMARY> (0.72)<F2> <EPS-DILUTED> (0.72)<F2> <FN> <F1>Interest and other income - net <F2>Includes Series B convertible preferred stock dividend of $1.5 million </FN>