<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from Lancer Orthodontics, Inc.'s 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-31-2000 <PERIOD-END> AUG-31-1999 <CASH> 214,082 <SECURITIES> 0 <RECEIVABLES> 1,371,377 <ALLOWANCES> 169,600 <INVENTORY> 2,284,662 <CURRENT-ASSETS> 3,734,158 <PP&E> 2,396,227 <DEPRECIATION> (2,228,343) <TOTAL-ASSETS> 4,199,546 <CURRENT-LIABILITIES> 855,639 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 185,242 <COMMON> 4,661,575 <OTHER-SE> (1,502,910) <TOTAL-LIABILITY-AND-EQUITY> 4,119,546 <SALES> 1,271,545 <TOTAL-REVENUES> 1,271,545 <CGS> 901,083 <TOTAL-COSTS> 901,083 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 3,705 <INCOME-PRETAX> (58,054) <INCOME-TAX> 800 <INCOME-CONTINUING> (58,854) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (58,854) <EPS-BASIC> (.03) <EPS-DILUTED> (.03)