<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from Lancer Orthodontics, Inc. first quarter fiscal 1996 10-QSB and is qualified in its entirety by reference to such 10-QSB. </LEGEND> <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> MAY-31-1996 <PERIOD-END> AUG-31-1995 <CASH> 316,870 <SECURITIES> 0 <RECEIVABLES> 1,530,581 <ALLOWANCES> 129,521 <INVENTORY> 1,584,214 <CURRENT-ASSETS> 3,311,658 <PP&E> 2,454,365 <DEPRECIATION> 2,077,820 <TOTAL-ASSETS> 4,277,932 <CURRENT-LIABILITIES> 871,505 <BONDS> 756,309 <COMMON> 4,644,748 <PREFERRED-MANDATORY> 0 <PREFERRED> 185,242 <OTHER-SE> (2,179,872) <TOTAL-LIABILITY-AND-EQUITY> 4,277,932 <SALES> 1,796,602 <TOTAL-REVENUES> 1,796,602 <CGS> 1,011,023 <TOTAL-COSTS> 1,011,023 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 36,299 <INCOME-PRETAX> 108,797 <INCOME-TAX> 800 <INCOME-CONTINUING> 107,997 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 107,997 <EPS-PRIMARY> .007 <EPS-DILUTED> .007