<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from the consolidated balance sheets and statements of income for Telos Corporation and is qualified in its entirety by reference to such financial statements. </LEGEND> <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> Dec-31-1998 <PERIOD-END> Mar-31-1998 <CASH> 412,000 <SECURITIES> 0 <RECEIVABLES> 36,642,000 <ALLOWANCES> 1,215,000 <INVENTORY> 9,899,000 <CURRENT-ASSETS> 5,494,000 <PP&E> 38,217,000 <DEPRECIATION> 22,715,000 <TOTAL-ASSETS> 80,052,000 <CURRENT-LIABILITIES> 29,174,000 <BONDS> 41,874,000 <PREFERRED-MANDATORY> 47,944,000 <PREFERRED> 0 <COMMON> 78,000 <OTHER-SE> (39,018,000) <TOTAL-LIABILITY-AND-EQUITY> 80,052,000 <SALES> 16,193,000 <TOTAL-REVENUES> 43,794,000 <CGS> 16,029,000 <TOTAL-COSTS> 40,481,000 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 1,779,000 <INCOME-PRETAX> 0 <INCOME-TAX> 125,000 <INCOME-CONTINUING> 677,000 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 677,000 <EPS-PRIMARY> 0 <EPS-DILUTED> 0