<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>                                   Sep-30-1998
<CASH>                                              471,000
<SECURITIES>                                              0
<RECEIVABLES>                                    36,268,000
<ALLOWANCES>                                        785,000
<INVENTORY>                                      12,581,000
<CURRENT-ASSETS>                                    477,000
<PP&E>                                           38,877,000
<DEPRECIATION>                                   24,270,000
<TOTAL-ASSETS>                                   81,469,000
<CURRENT-LIABILITIES>                            36,035,000
<BONDS>                                          49,933,000
<PREFERRED-MANDATORY>                            38,789,000
<PREFERRED>                                               0
<COMMON>                                             78,000
<OTHER-SE>                                      (43,288,000)
<TOTAL-LIABILITY-AND-EQUITY>                     81,469,000
<SALES>                                          16,802,000
<TOTAL-REVENUES>                                 40,458,000
<CGS>                                                15,640
<TOTAL-COSTS>                                    37,399,000
<OTHER-EXPENSES>                                          0
<LOSS-PROVISION>                                          0
<INTEREST-EXPENSE>                                1,662,000
<INCOME-PRETAX>                                           0
<INCOME-TAX>                                        117,000
<INCOME-CONTINUING>                              (5,284,000)
<DISCONTINUED>                                            0
<EXTRAORDINARY>                                           0
<CHANGES>                                                 0
<NET-INCOME>                                     (5,284,000)
<EPS-PRIMARY>                                             0
<EPS-DILUTED>                                             0