<ARTICLE> 5 <MULTIPLIER> 1,000 <PERIOD-TYPE> 12-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> DEC-31-1998 <CASH> 8,553 <SECURITIES> 12,806 <RECEIVABLES> 23,411 <ALLOWANCES> 1,821 <INVENTORY> 14,362 <CURRENT-ASSETS> 66,041 <PP&E> 29,074 <DEPRECIATION> 25,224 <TOTAL-ASSETS> 75,146 <CURRENT-LIABILITIES> 22,554 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 59,737 <OTHER-SE> (7,214) <TOTAL-LIABILITY-AND-EQUITY> 75,146 <SALES> 105,596<F1> <TOTAL-REVENUES> 105,596 <CGS> 67,030<F2> <TOTAL-COSTS> 67,030 <OTHER-EXPENSES> 52,012 <LOSS-PROVISION> 22 <INTEREST-EXPENSE> 14 <INCOME-PRETAX> (9,761) <INCOME-TAX> (658) <INCOME-CONTINUING> (9,103) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (9,103) <EPS-PRIMARY> (0.56) <EPS-DILUTED> (0.56) <FN> <F1>Includes revenues from licensing of software and support revenues. <F2>Includes costs from licensing of software and support revenues. </FN>