<ARTICLE> 5 <RESTATED> <MULTIPLIER> 1,000 <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> DEC-31-1998 <CASH> 1,437 <SECURITIES> 23,375 <RECEIVABLES> 2,996 <ALLOWANCES> 583 <INVENTORY> 1,623 <CURRENT-ASSETS> 29,441 <PP&E> 2,652 <DEPRECIATION> 1,120 <TOTAL-ASSETS> 32,035 <CURRENT-LIABILITIES> 4,536 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 10 <OTHER-SE> 27,489 <TOTAL-LIABILITY-AND-EQUITY> 32,035 <SALES> 9,415 <TOTAL-REVENUES> 12,175 <CGS> 6,152 <TOTAL-COSTS> 6,152 <OTHER-EXPENSES> 21,364 <LOSS-PROVISION> 295 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> (7,986) <INCOME-TAX> 0 <INCOME-CONTINUING> (7,986) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (7,986) <EPS-BASIC> (0.90) <EPS-DILUTED> (0.90)