<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-31-1999 <PERIOD-END> NOV-30-1998 <CASH> 97,810 <SECURITIES> 0 <RECEIVABLES> 1,407,971 <ALLOWANCES> (99,118) <INVENTORY> 2,142,774 <CURRENT-ASSETS> 3,568,157 <PP&E> 2,363,998 <DEPRECIATION> (2,155,685) <TOTAL-ASSETS> 4,129,172 <CURRENT-LIABILITIES> 768,847 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 185,242 <COMMON> 4,700,906 <OTHER-SE> (1,525,823) <TOTAL-LIABILITY-AND-EQUITY> 4,129,172 <SALES> 3,074,520 <TOTAL-REVENUES> 3,074,520 <CGS> 1,963,574 <TOTAL-COSTS> 1,963,574 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 4,608 <INCOME-PRETAX> (38,936) <INCOME-TAX> 800 <INCOME-CONTINUING> (39,736) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (39,736) <EPS-PRIMARY> (.02) <EPS-DILUTED> (.02)