WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

  

<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM FORM 10-Q FOR THE QUARTER ENDED FEBRUARY 28, 1997 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>                             NOV 30-1996
<PERIOD-END>                               FEB-28-1996
<CASH>                                          11,128
<SECURITIES>                                     5,731
<RECEIVABLES>                                    3,278
<ALLOWANCES>                                       103
<INVENTORY>                                      2,317
<CURRENT-ASSETS>                                23,969
<PP&E>                                          12,878
<DEPRECIATION>                                   9,417
<TOTAL-ASSETS>                                  29,085
<CURRENT-LIABILITIES>                            1,040
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                            30
<OTHER-SE>                                      25,846
<TOTAL-LIABILITY-AND-EQUITY>                    29,085
<SALES>                                          4,010
<TOTAL-REVENUES>                                 3,765
<CGS>                                            1,555
<TOTAL-COSTS>                                    3,983
<OTHER-EXPENSES>                                 (218)
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                     (2)
<INCOME-TAX>                                        (4)
<INCOME-CONTINUING>                                  2
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                         2
<EPS-PRIMARY>                                     0.00
<EPS-DILUTED>                                     0.00