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

  


<ARTICLE>                     5
<LEGEND>
THIS SCHEDULE CONTAINS CUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) AND NOTES TO THE
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTH PERIOD ENDED
SEPTEMBER 30, 1997, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH 10-K
FOR THE YEAR ENDED DECEMBER 31, 1996, AS AMENDED, FILED APRIL 15, 1997.
</LEGEND>
<CIK>                         0000722051
<NAME>                        NOISE CANCELLATION TECHNOLOGIES, INC.
<MULTIPLIER>                                   1000
<CURRENCY>                                    US DOLLARS
       
                             
<PERIOD-TYPE>                                  YEAR
<FISCAL-YEAR-END>                              DEC-31-1997
<PERIOD-START>                                 JAN-01-1997
<PERIOD-END>                                   DEC-31-1997
<CASH>                                         1,038
<SECURITIES>                                       0
<RECEIVABLES>                                    620
<ALLOWANCES>                                     124
<INVENTORY>                                    1,350
<CURRENT-ASSETS>                               3,167
<PP&E>                                         5,416
<DEPRECIATION>                                 3,950
<TOTAL-ASSETS>                                 6,254
<CURRENT-LIABILITIES>                          3,878
<BONDS>                                            0
<PREFERRED-MANDATORY>                              0
<PREFERRED>                                        0
<COMMON>                                       1,312
<OTHER-SE>                                     1,064
<TOTAL-LIABILITY-AND-EQUITY>                   6,254
<SALES>                                        1,069
<TOTAL-REVENUES>                               4,840
<CGS>                                          1,401
<TOTAL-COSTS>                                  1,696
<OTHER-EXPENSES>                               8,312
<LOSS-PROVISION>                                 148
<INTEREST-EXPENSE>                                54
<INCOME-PRETAX>                               (5,178)
<INCOME-TAX>                                       0
<INCOME-CONTINUING>                           (5,178)
<DISCONTINUED>                                     0
<EXTRAORDINARY>                                    0
<CHANGES>                                          0
<NET-INCOME>                                  (5,178)
<EPS-PRIMARY>                                   (.04)
<EPS-DILUTED>                                   (.04)