<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from Lancer Orthodontics, Inc.'s First quarter 1997 10-QSB and is qualified in its entirety by reference to such 10-QSB. </LEGEND> <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> MAY-31-1997 <PERIOD-END> AUG-31-1996 <CASH> 150,418 <SECURITIES> 0 <RECEIVABLES> 1,445,511 <ALLOWANCES> 114,489 <INVENTORY> 1,675,801 <CURRENT-ASSETS> 3,174,512 <PP&E> 2,535,901 <DEPRECIATION> (2,218,665) <TOTAL-ASSETS> 4,007,881 <CURRENT-LIABILITIES> 860,105 <BONDS> 197,518 <PREFERRED-MANDATORY> 0 <PREFERRED> 185,242 <COMMON> 4,710,614 <OTHER-SE> (1,955,642) <TOTAL-LIABILITY-AND-EQUITY> 4,007,881 <SALES> 1,485,282 <TOTAL-REVENUES> 1,485,282 <CGS> 913,903 <TOTAL-COSTS> 913,903 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 16,803 <INCOME-PRETAX> 14,056 <INCOME-TAX> 800 <INCOME-CONTINUING> 13,256 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 13,256 <EPS-PRIMARY> .001 <EPS-DILUTED> .001