FORM 3
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility
Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
OMB APPROVAL



OMB Number: 3235-0104
Expires: January 31, 2005
Estimated average burden
hours per response. . . . . 0.5
1. Name and Address of Reporting Person*

Cary, David

(Last)                      (First)                      (Middle)

14100 Southwest Freeway, Suite 500

(Street)
Sugar Land,    TX   77478

(City)                      (State)                      (Zip)

2. Date of Event
Requiring Statement
    Month/Day/Year

12/5/02


3. I.R.S. Identification
    Number of Reporting
    Person, if an entity
    (voluntary)
4. Issuer Name andTicker or Trading Symbol

NEON Systems, Inc. (NEON)


5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

X Director      10% Owner
   Officer (give title below)    
   Other (specify below)

Description    

6. If Amendment,
    Date of Original
    (Month/Day/Year)



7. Individual or Joint/Group
    Filing (Check Applicable Line)

X   Form filed by One Reporting Person
     Form filed by More than One Reporting Person
Table I - Non-Derivative Securities Beneficially Owned
1. Title of Security
    (Instr. 4)

2. Amount of Securities Beneficially Owned

    (Instr.4)
3. Ownership Form:
    Direct (D)
    or
    Indirect (I)

    (Instr. 5)
4. Nature of Indirect Beneficial Ownership

    (Instr. 5)

 
Table II - Derivative Securities Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
    (Instr. 4)
2. Date Exercisable(DE) and
    Expiration Date(ED)
    (Month/Day/Year)






  DE     /     ED  
3. Title and Amount of
    Underlying Securities
    (Instr. 4)






Title     /         Amount or Number of Shares
4. Conver-
    sion or
    Exercise
    Price of
    Deri-
    vative
    Security
5. Owner-
ship
Form of
Deriv-
ative
Security:
Direct (D)
or
Indirect (I)

(Instr.5)
6. Nature of
      Indirect
      Beneficial
      Ownership
      (Instr.5)
Stock Options (Right to Buy) (1)
(1) / 12/5/12
Common Stock / 12,500
$2.50
D

Explanation of Responses:
 
(1) Granted under the Issurer's 2002 Director Option Plan and vesting quarterly over three (3) years from the date of grant.
By:
/s/ David F. Cary                                                                                                12/5/02
** Signature of Reporting Person                                                                                    Date      





SEC 1473 (07/02)
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.

* If the form is filed by more than one reporting person, see Instruction 5(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Potential persons who are to respond to the collection of information contained in this form are not
required to respond unless the form displays a currently valid OMB Number.