<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from Lancer Orthodontics, Inc first quarter 10-Q and is qualified in its entirety by reference to such 10-Q. </LEGEND> <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> MAY-31-1999 <PERIOD-END> AUG-31-1998 <CASH> 108,816 <SECURITIES> 0 <RECEIVABLES> 1,433,334 <ALLOWANCES> (99,825) <INVENTORY> 2,076,955 <CURRENT-ASSETS> 3,553,512 <PP&E> 2,330,494 <DEPRECIATION> (2,133,365) <TOTAL-ASSETS> 4,121,741 <CURRENT-LIABILITIES> 681,458 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 185,242 <COMMON> 4,700,906 <OTHER-SE> (1,445,865) <TOTAL-LIABILITY-AND-EQUITY> 4,121,741 <SALES> 1,540,302 <TOTAL-REVENUES> 1,540,302 <CGS> 941,277 <TOTAL-COSTS> 941,277 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 1,979 <INCOME-PRETAX> 41,023 <INCOME-TAX> 800 <INCOME-CONTINUING> 40,223 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 40,223 <EPS-PRIMARY> .019 <EPS-DILUTED> .019