<ARTICLE> 5 <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-1-1998 <PERIOD-END> DEC-31-1998 <CASH> 2,744,000 <SECURITIES> 8,235,000 <RECEIVABLES> 518,000 <ALLOWANCES> 80,000 <INVENTORY> 247,000 <CURRENT-ASSETS> 12,084,000 <PP&E> 2,382,000 <DEPRECIATION> 685,000 <TOTAL-ASSETS> 15,065,000 <CURRENT-LIABILITIES> 1,460,000 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 127,000 <OTHER-SE> 13,361,000 <TOTAL-LIABILITY-AND-EQUITY> 15,065,000 <SALES> 3,047,000 <TOTAL-REVENUES> 3,047,000 <CGS> 814,000 <TOTAL-COSTS> 814,000 <OTHER-EXPENSES> 11,023,000 <LOSS-PROVISION> 55,000 <INTEREST-EXPENSE> 52,000 <INCOME-PRETAX> (8,095,000) <INCOME-TAX> 0 <INCOME-CONTINUING> (8,095,000) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (8,095,000) <EPS-PRIMARY> (0.64) <EPS-DILUTED> (0.64)