<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION RESTATED TO REFLECT RETROACTIVE APPLICATION, IN 1998, OF THE REQUIREMENTS OF THE SEC STAFF ACCOUNTING BULLETIN NO. 98 FOR THE DETERMINATION OF THE NUMBER OF SHARES USED IN COMPUTING NET LOSS PER SHARE FOR THE PERIOD ENDED DECEMBER 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> 12-MOS <F1> <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-END> DEC-31-1997 <CASH> 4,200 <SECURITIES> 3,024 <RECEIVABLES> 4,820 <ALLOWANCES> 378 <INVENTORY> 4,029 <CURRENT-ASSETS> 16,350 <PP&E> 1,160 <DEPRECIATION> 0 <TOTAL-ASSETS> 18,856 <CURRENT-LIABILITIES> 3,536 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 117 <OTHER-SE> 15,154 <TOTAL-LIABILITY-AND-EQUITY> 18,856 <SALES> 16,281 <TOTAL-REVENUES> 23,020 <CGS> 11,886 <TOTAL-COSTS> 12,656 <OTHER-EXPENSES> 5,355 <F2> <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 120 <INCOME-PRETAX> (6,063) <INCOME-TAX> 96 <INCOME-CONTINUING> (6,159) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (6,159) <EPS-PRIMARY> (0.84) <F3> <EPS-DILUTED> (0.84) <FN> <F1> The Company changed its fiscal year end. The reporting year ended January 3, 1998 is referred to herein as ending on December 31, 1997. <F2> Item consists of research and development. <F3> Item consists of basic earnings per share. </FN>