<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from Lancer Orthodontics, Inc.'s second quarter 10-Q and is qualified in its entirety by reference to such 10-Q. </LEGEND> <PERIOD-TYPE> 6-MOS <FISCAL-YEAR-END> MAY-31-1998 <PERIOD-END> NOV-30-1997 <CASH> 149,178 <SECURITIES> 0 <RECEIVABLES> 1,293,614 <ALLOWANCES> (97,727) <INVENTORY> 1,733,887 <CURRENT-ASSETS> 3,130,603 <PP&E> 2,308,282 <DEPRECIATION> (2,096,131) <TOTAL-ASSETS> 3,766,892 <CURRENT-LIABILITIES> 587,163 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 185,242 <COMMON> 4,710,614 <OTHER-SE> (1,716,127) <TOTAL-LIABILITY-AND-EQUITY> 3,766,892 <SALES> 3,011,290 <TOTAL-REVENUES> 3,011,290 <CGS> 1,866,011 <TOTAL-COSTS> 1,866,011 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 17,074 <INCOME-PRETAX> 30,246 <INCOME-TAX> 800 <INCOME-CONTINUING> 29,446 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 29,446 <EPS-PRIMARY> .014 <EPS-DILUTED> .014