<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>