<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from Lancer Orthodontics, Inc.'s third quarter 10-Q and is qualified in its entirety by reference to such 10-Q. </LEGEND> <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> MAY-31-1998 <PERIOD-END> FEB-28-1998 <CASH> 245,083 <SECURITIES> 0 <RECEIVABLES> 1,253,245 <ALLOWANCES> (100,306) <INVENTORY> 1,650,811 <CURRENT-ASSETS> 3,071,785 <PP&E> 2,312,981 <DEPRECIATION> (2,082,121) <TOTAL-ASSETS> 3,708,384 <CURRENT-LIABILITIES> 549,399 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 185,242 <COMMON> 4,710,614 <OTHER-SE> (1,736,871) <TOTAL-LIABILITY-AND-EQUITY> 3,708,384 <SALES> 4,381,358 <TOTAL-REVENUES> 4,381,358 <CGS> 2,694,070 <TOTAL-COSTS> 2,694,070 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 23,412 <INCOME-PRETAX> 9,502 <INCOME-TAX> 800 <INCOME-CONTINUING> 8,702 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 8,702 <EPS-PRIMARY> .004 <EPS-DILUTED> .004