<PAGE>
- --------------------------------------------------------------------------------
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------------------
AMENDMENT NO. 3 ON
FORM 10-K/A
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1997
------------------------
COMMISSION FILE NUMBER 0-19771
------------------------
DATA SYSTEMS & SOFTWARE INC.
(Exact name of registrant as specified in charter)
DELAWARE 22-2786081
(State or other jurisdiction of (I.R.S. employer identification
incorporation or organization) no.)
200 ROUTE 17, MAHWAH, NEW JERSEY 07430
Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (201) 529-2026
Securities registered pursuant to Section 12(b) of the Act: NONE
Securities registered pursuant to Section 12(g) of the Act:
COMMON STOCK, PAR VALUE $.01 PER SHARE
COMMON STOCK PURCHASE RIGHTS
(Title of Class)
------------------------
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes /X/ No / /
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10K. /X/
The aggregate market value of the common stock held by non-affiliates of the
registrant at March 18, 1998 was approximately $41.5 million. The aggregate
market value was calculated by using the closing price of the stock on that date
on the Nasdaq National Market.
Number of shares outstanding of the registrant's common stock, as of March
18, 1998: 7,369,178.
DOCUMENTS INCORPORATED BY REFERENCE:
None
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<PAGE>
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K.
Unless otherwise indicated, all exhibits have been previously filed.
(a) EXHIBITS:
27.1 Financial Data Schedule
27.2 Financial Data Schedule
27.3 Financial Data Schedule
27.4 Financial Data Schedule
27.5 Financial Data Schedule
27.6 Financial Data Schedule
27.7 Financial Data Schedule
27.8 Financial Data Schedule
- ------------------------
* This exhibit includes a management contract, compensatory plan or
arrangement in which one or more directors or executive officers of the
Company participate.
** Hebrew original, accompanied by English language translation or summary.
+ Filed herewith.
(b) FINANCIAL STATEMENT SCHEDULES.
None.
(c) REPORTS ON FORM 8-K.
The Company filed no reports on Form 8-K during the last three months of
1997.
<PAGE>
SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this amendment to be signed
on its behalf by the undersigned, thereunto duly authorized, in the Township of
Mahwah, State of New Jersey, on October 1, 1998.
DATA SYSTEMS & SOFTWARE INC.
BY /s/ YACOV KAUFMAN
-----------------------------------------
Yacov Kaufman
CHIEF FINANCIAL OFFICER
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from the
consolidated financial statements and is qualified in its entirety by reference
to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 49,675
<SECURITIES> 81,128
<RECEIVABLES> 19,480
<ALLOWANCES> 0
<INVENTORY> 16,816
<CURRENT-ASSETS> 191,594
<PP&E> 102,376
<DEPRECIATION> 17,860
<TOTAL-ASSETS> 282,365
<CURRENT-LIABILITIES> 54,176
<BONDS> 12,484
0
0
<COMMON> 77
<OTHER-SE> 65,234
<TOTAL-LIABILITY-AND-EQUITY> 282,365
<SALES> 30,602
<TOTAL-REVENUES> 35,732
<CGS> 22,040
<TOTAL-COSTS> 25,799
<OTHER-EXPENSES> 5,289
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 964
<INCOME-PRETAX> 5,499
<INCOME-TAX> 1,161
<INCOME-CONTINUING> 4,338
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 513
<EPS-PRIMARY> 0.07
<EPS-DILUTED> 0.07
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from the
consolidated financial statements and is qualified in tis entirety by reference
to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 58,663
<SECURITIES> 61,731
<RECEIVABLES> 19,434
<ALLOWANCES> 0
<INVENTORY> 16,561
<CURRENT-ASSETS> 174,441
<PP&E> 120,900
<DEPRECIATION> 21,512
<TOTAL-ASSETS> 280,525
<CURRENT-LIABILITIES> 53,342
<BONDS> 12,290
0
0
<COMMON> 77
<OTHER-SE> 65,663
<TOTAL-LIABILITY-AND-EQUITY> 280,525
<SALES> 63,056
<TOTAL-REVENUES> 72,443
<CGS> 47,519
<TOTAL-COSTS> 54,614
<OTHER-EXPENSES> 10,808
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,723
<INCOME-PRETAX> 8,642
<INCOME-TAX> 1,650
<INCOME-CONTINUING> 6,992
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 802
<EPS-PRIMARY> 0.11
<EPS-DILUTED> 0.11
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from the
consolidated financial statements and is qualified in tis entirety by reference
to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 49,024
<SECURITIES> 56,802
<RECEIVABLES> 15,545
<ALLOWANCES> 0
<INVENTORY> 14,986
<CURRENT-ASSETS> 156,197
<PP&E> 132,607
<DEPRECIATION> 25,222
<TOTAL-ASSETS> 272,008
<CURRENT-LIABILITIES> 43,962
<BONDS> 12,245
0
0
<COMMON> 77
<OTHER-SE> 64,390
<TOTAL-LIABILITY-AND-EQUITY> 272,008
<SALES> 87,630
<TOTAL-REVENUES> 101,145
<CGS> 68,263
<TOTAL-COSTS> 78,766
<OTHER-EXPENSES> 16,535
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,383
<INCOME-PRETAX> 9,868
<INCOME-TAX> 3,084
<INCOME-CONTINUING> 6,784
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (520)
<EPS-PRIMARY> (0.07)
<EPS-DILUTED> (0.07)
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from the
consolidated financial statements and is qualified in its entirety by reference
to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<CASH> 4,265
<SECURITIES> 5,226
<RECEIVABLES> 7,875
<ALLOWANCES> 0
<INVENTORY> 953
<CURRENT-ASSETS> 20,059
<PP&E> 4,459
<DEPRECIATION> 2,180
<TOTAL-ASSETS> 97,818
<CURRENT-LIABILITIES> 6,383
<BONDS> 331
0
0
<COMMON> 77
<OTHER-SE> 62,479
<TOTAL-LIABILITY-AND-EQUITY> 97,818
<SALES> 113,235
<TOTAL-REVENUES> 131,755
<CGS> 87,706
<TOTAL-COSTS> 102,094
<OTHER-EXPENSES> 23,694
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,218
<INCOME-PRETAX> 9,127
<INCOME-TAX> 2,141
<INCOME-CONTINUING> 6,986
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,480)
<EPS-PRIMARY> (0.33)
<EPS-DILUTED> (0.33)
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from the
consolidated financial statements and is qualified in its entirety by reference
to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 3,487
<SECURITIES> 3,000
<RECEIVABLES> 9,072
<ALLOWANCES> 0
<INVENTORY> 561
<CURRENT-ASSETS> 17,125
<PP&E> 4,777
<DEPRECIATION> 2,389
<TOTAL-ASSETS> 95,387
<CURRENT-LIABILITIES> 7,386
<BONDS> 601
0
0
<COMMON> 77
<OTHER-SE> 58,462
<TOTAL-LIABILITY-AND-EQUITY> 95,387
<SALES> 5,403
<TOTAL-REVENUES> 9,950
<CGS> 3,938
<TOTAL-COSTS> 7,903
<OTHER-EXPENSES> 6,848
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 152
<INCOME-PRETAX> (4,868)
<INCOME-TAX> 484
<INCOME-CONTINUING> (5,352)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (4,066)
<EPS-PRIMARY> (0.55)
<EPS-DILUTED> (0.55)
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from the
consolidated financial statements and is qualified in its entirety by reference
to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 1,148
<SECURITIES> 1,400
<RECEIVABLES> 9,268
<ALLOWANCES> 0
<INVENTORY> 744
<CURRENT-ASSETS> 16,473
<PP&E> 4,919
<DEPRECIATION> 2,612
<TOTAL-ASSETS> 96,605
<CURRENT-LIABILITIES> 8,860
<BONDS> 610
0
0
<COMMON> 77
<OTHER-SE> 57,516
<TOTAL-LIABILITY-AND-EQUITY> 96,605
<SALES> 9,897
<TOTAL-REVENUES> 20,001
<CGS> 7,799
<TOTAL-COSTS> 15,616
<OTHER-EXPENSES> 12,090
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 160
<INCOME-PRETAX> (7,297)
<INCOME-TAX> 533
<INCOME-CONTINUING> (7,830)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (5,061)
<EPS-PRIMARY> (0.69)
<EPS-DILUTED> (0.69)
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from the
consolidated financial statements and is qualified in its entirety by reference
to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 3,221
<SECURITIES> 0
<RECEIVABLES> 8,320
<ALLOWANCES> 0
<INVENTORY> 503
<CURRENT-ASSETS> 13,524
<PP&E> 5,123
<DEPRECIATION> 2,842
<TOTAL-ASSETS> 95,888
<CURRENT-LIABILITIES> 9,002
<BONDS> 560
0
0
<COMMON> 77
<OTHER-SE> 56,162
<TOTAL-LIABILITY-AND-EQUITY> 95,888
<SALES> 14,903
<TOTAL-REVENUES> 29,274
<CGS> 10,601
<TOTAL-COSTS> 22,499
<OTHER-EXPENSES> 16,907
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 11
<INCOME-PRETAX> (9,617)
<INCOME-TAX> 526
<INCOME-CONTINUING> (10,143)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (6,464)
<EPS-PRIMARY> (0.88)
<EPS-DILUTED> (0.88)
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from the
consolidated financial statements and is qualified in its entirety by reference
to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1997
<CASH> 3,283
<SECURITIES> 1,600
<RECEIVABLES> 9,441
<ALLOWANCES> 438
<INVENTORY> 377
<CURRENT-ASSETS> 17,684
<PP&E> 5,108
<DEPRECIATION> 2,927
<TOTAL-ASSETS> 92,366
<CURRENT-LIABILITIES> 10,483
<BONDS> 248
0
0
<COMMON> 77
<OTHER-SE> 52,231
<TOTAL-LIABILITY-AND-EQUITY> 92,366
<SALES> 19,950
<TOTAL-REVENUES> 39,996
<CGS> 16,744
<TOTAL-COSTS> 32,437
<OTHER-EXPENSES> 20,194
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 225
<INCOME-PRETAX> (12,493)
<INCOME-TAX> 3,507
<INCOME-CONTINUING> (16,000)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (10,444)
<EPS-PRIMARY> (1.42)
<EPS-DILUTED> (1.42)
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 58,663
<SECURITIES> 61,731
<RECEIVABLES> 19,434
<ALLOWANCES> 0
<INVENTORY> 16,561
<CURRENT-ASSETS> 174,441
<PP&E> 120,900
<DEPRECIATION> 21,512
<TOTAL-ASSETS> 280,525
<CURRENT-LIABILITIES> 53,342
<BONDS> 12,290
0
0
<COMMON> 77
<OTHER-SE> 65,663
<TOTAL-LIABILITY-AND-EQUITY> 280,525
<SALES> 63,056
<TOTAL-REVENUES> 72,443
<CGS> 47,519
<TOTAL-COSTS> 54,614
<OTHER-EXPENSES> 10,808
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,723
<INCOME-PRETAX> 8,642
<INCOME-TAX> 1,650
<INCOME-CONTINUING> 6,992
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 802
<EPS-PRIMARY> 0.11
<EPS-DILUTED> 0.11
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> SEP-30-1996
<CASH> 49,024
<SECURITIES> 56,802
<RECEIVABLES> 15,545
<ALLOWANCES> 0
<INVENTORY> 14,986
<CURRENT-ASSETS> 156,197
<PP&E> 132,607
<DEPRECIATION> 25,222
<TOTAL-ASSETS> 272,008
<CURRENT-LIABILITIES> 43,962
<BONDS> 12,245
0
0
<COMMON> 77
<OTHER-SE> 64,390
<TOTAL-LIABILITY-AND-EQUITY> 272,008
<SALES> 87,630
<TOTAL-REVENUES> 101,145
<CGS> 68,263
<TOTAL-COSTS> 78,766
<OTHER-EXPENSES> 16,535
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,383
<INCOME-PRETAX> 9,868
<INCOME-TAX> 3,084
<INCOME-CONTINUING> 6,784
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (520)
<EPS-PRIMARY> (0.07)
<EPS-DILUTED> (0.07)
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<CASH> 4,265
<SECURITIES> 5,226
<RECEIVABLES> 7,875
<ALLOWANCES> 0
<INVENTORY> 953
<CURRENT-ASSETS> 20,059
<PP&E> 4,459
<DEPRECIATION> 2,180
<TOTAL-ASSETS> 97,818
<CURRENT-LIABILITIES> 6,383
<BONDS> 331
0
0
<COMMON> 77
<OTHER-SE> 62,479
<TOTAL-LIABILITY-AND-EQUITY> 97,818
<SALES> 113,235
<TOTAL-REVENUES> 131,755
<CGS> 87,706
<TOTAL-COSTS> 102,094
<OTHER-EXPENSES> 23,694
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,218
<INCOME-PRETAX> 9,127
<INCOME-TAX> 2,141
<INCOME-CONTINUING> 6,986
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,480)
<EPS-PRIMARY> (0.33)
<EPS-DILUTED> (0.33)
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 3,487
<SECURITIES> 3,000
<RECEIVABLES> 9,072
<ALLOWANCES> 0
<INVENTORY> 561
<CURRENT-ASSETS> 17,125
<PP&E> 4,777
<DEPRECIATION> 2,389
<TOTAL-ASSETS> 95,387
<CURRENT-LIABILITIES> 7,386
<BONDS> 601
0
0
<COMMON> 77
<OTHER-SE> 58,462
<TOTAL-LIABILITY-AND-EQUITY> 95,387
<SALES> 5,403
<TOTAL-REVENUES> 9,950
<CGS> 3,938
<TOTAL-COSTS> 7,903
<OTHER-EXPENSES> 6,848
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 152
<INCOME-PRETAX> (4,868)
<INCOME-TAX> 484
<INCOME-CONTINUING> (5,352)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (4,066)
<EPS-PRIMARY> (0.55)
<EPS-DILUTED> (0.55)
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS AND IS QUALIFIED INITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 1,148
<SECURITIES> 1,400
<RECEIVABLES> 9,268
<ALLOWANCES> 0
<INVENTORY> 744
<CURRENT-ASSETS> 16,473
<PP&E> 4,919
<DEPRECIATION> 2,612
<TOTAL-ASSETS> 96,605
<CURRENT-LIABILITIES> 8,860
<BONDS> 610
0
0
<COMMON> 77
<OTHER-SE> 57,516
<TOTAL-LIABILITY-AND-EQUITY> 96,605
<SALES> 9,987
<TOTAL-REVENUES> 20,001
<CGS> 7,799
<TOTAL-COSTS> 15,616
<OTHER-EXPENSES> 12,090
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 160
<INCOME-PRETAX> (7,297)
<INCOME-TAX> 533
<INCOME-CONTINUING> (7,830)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (5,061)
<EPS-PRIMARY> (0.69)
<EPS-DILUTED> (0.69)
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 3,221
<SECURITIES> 0
<RECEIVABLES> 8,320
<ALLOWANCES> 0
<INVENTORY> 503
<CURRENT-ASSETS> 13,524
<PP&E> 5,123
<DEPRECIATION> 2,842
<TOTAL-ASSETS> 95,888
<CURRENT-LIABILITIES> 9,002
<BONDS> 560
0
0
<COMMON> 77
<OTHER-SE> 56,162
<TOTAL-LIABILITY-AND-EQUITY> 95,888
<SALES> 14,903
<TOTAL-REVENUES> 29,274
<CGS> 10,601
<TOTAL-COSTS> 22,499
<OTHER-EXPENSES> 16,907
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 11
<INCOME-PRETAX> (9617)
<INCOME-TAX> 526
<INCOME-CONTINUING> (10143)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (6,464)
<EPS-PRIMARY> (0.88)
<EPS-DILUTED> (0.88)
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FORM THE
CONSOLIDATED FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1997
<CASH> 3,283
<SECURITIES> 1,600
<RECEIVABLES> 9,441
<ALLOWANCES> 438
<INVENTORY> 377
<CURRENT-ASSETS> 17,684
<PP&E> 5,108
<DEPRECIATION> 2,927
<TOTAL-ASSETS> 92,366
<CURRENT-LIABILITIES> 10,483
<BONDS> 248
0
0
<COMMON> 77
<OTHER-SE> 52,231
<TOTAL-LIABILITY-AND-EQUITY> 92,366
<SALES> 19,950
<TOTAL-REVENUES> 39,996
<CGS> 16,744
<TOTAL-COSTS> 32,437
<OTHER-EXPENSES> 20,194
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 225
<INCOME-PRETAX> (12,493)
<INCOME-TAX> 3,507
<INCOME-CONTINUING> (16,000)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (10,444)
<EPS-PRIMARY> (1.42)
<EPS-DILUTED> (1.42)
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARU FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 1,953
<SECURITIES> 0
<RECEIVABLES> 10,739
<ALLOWANCES> 393
<INVENTORY> 841
<CURRENT-ASSETS> 16,326
<PP&E> 5,474
<DEPRECIATION> 2,999
<TOTAL-ASSETS> 91,011
<CURRENT-LIABILITIES> 13,325
<BONDS> 561
0
0
<COMMON> 77
<OTHER-SE> 49,382
<TOTAL-LIABILITY-AND-EQUITY> 91,011
<SALES> 6,765
<TOTAL-REVENUES> 11,717
<CGS> 5,797
<TOTAL-COSTS> 9,199
<OTHER-EXPENSES> 5,231
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 92
<INCOME-PRETAX> (2,699)
<INCOME-TAX> 23
<INCOME-CONTINUING> (2,722)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,898)
<EPS-PRIMARY> (0.39)
<EPS-DILUTED> (0.39)
</TABLE>