WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE. <ARTICLE> 5 <CIK> 0000352956 <NAME> FAFCO, INC. <CURRENCY> U.S. DOLLARS <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> MAR-31-1998 <CASH> 9,100 <SECURITIES> 0 <RECEIVABLES> 3,289,900 <ALLOWANCES> 568,200 <INVENTORY> 1,125,000 <CURRENT-ASSETS> 4,314,800 <PP&E> 2,673,400 <DEPRECIATION> 2,264,400 <TOTAL-ASSETS> 5,341,700 <CURRENT-LIABILITIES> 2,320,400 <BONDS> 974,300 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 412,800 <OTHER-SE> 1,634,200 <TOTAL-LIABILITY-AND-EQUITY> 5,341,700 <SALES> 2,699,500 <TOTAL-REVENUES> 2,699,800 <CGS> 1,763,400 <TOTAL-COSTS> 1,763,400 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 2,800 <INTEREST-EXPENSE> 35,100 <INCOME-PRETAX> 2,200 <INCOME-TAX> 0 <INCOME-CONTINUING> 2,200 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 2,200 <EPS-PRIMARY> 0.00 <EPS-DILUTED> 0.00