<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from Lancer Orthodontics, Inc. Third quarter 1996 10-QSB and is qualified in its entirety to such 10-QSB. </LEGEND> <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> MAY-31-1996 <PERIOD-END> FEB-29-1996 <CASH> 124,776 <SECURITIES> 0 <RECEIVABLES> 1,284,767 <ALLOWANCES> 99,251 <INVENTORY> 1,662,322 <CURRENT-ASSETS> 3,010,371 <PP&E> 2,517,884 <DEPRECIATION> (2,178,320) <TOTAL-ASSETS> 3,902,865 <CURRENT-LIABILITIES> 896,556 <BONDS> 333,224 <PREFERRED-MANDATORY> 0 <PREFERRED> 185,242 <COMMON> 4,689,380 <OTHER-SE> (2,201,537) <TOTAL-LIABILITY-AND-EQUITY> 3,902,865 <SALES> 4,826,207 <TOTAL-REVENUES> 4,826,207 <CGS> 2,892,627 <TOTAL-COSTS> 2,892,627 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 86,370 <INCOME-PRETAX> 87,132 <INCOME-TAX> 800 <INCOME-CONTINUING> 86,336 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 86,336 <EPS-PRIMARY> .006 <EPS-DILUTED> .006