<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM FORM 10-Q FOR THE QUARTER ENDED NOVEMBER 29, 1996 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000356037
<NAME> CSP INC
<MULTIPLIER> 1,000
       
                                        
<PERIOD-TYPE>                              3-MOS
<FISCAL-YEAR-END>                          AUG-29-1997
<PERIOD-START>                             AUG-31-1996
<PERIOD-END>                               NOV-29-1996
<CASH>                                          10,549
<SECURITIES>                                     7,477
<RECEIVABLES>                                    3,021
<ALLOWANCES>                                       103
<INVENTORY>                                      2,618
<CURRENT-ASSETS>                                24,476
<PP&E>                                          12,644
<DEPRECIATION>                                   9,137
<TOTAL-ASSETS>                                  29,472
<CURRENT-LIABILITIES>                            1,496
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                            29
<OTHER-SE>                                      25,794
<TOTAL-LIABILITY-AND-EQUITY>                    29,472
<SALES>                                          4,010
<TOTAL-REVENUES>                                 4,010
<CGS>                                            1,725
<TOTAL-COSTS>                                    4,203
<OTHER-EXPENSES>                                 (198)
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   1
<INCOME-PRETAX>                                      5
<INCOME-TAX>                                       (3)
<INCOME-CONTINUING>                                  8
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                         8
<EPS-PRIMARY>                                     0.00
<EPS-DILUTED>                                     0.00