<ARTICLE>                     5                                        
<LEGEND>                                                               
THIS  SCHEDULE  CONTAINS  SUMMARY  FINANCIAL   INFORMATION  EXTRACTED  
CONDENSED  CONSOLIDATED  FINANCIAL  STATEMENTS  (UNAUDITED)  AND  NOTES
CONDENSED  CONSOLIDATED FINANCIAL STATEMENTS FOR THE THE NINE-MONTH PER
SEPTEMBER  30, 1997 AND IS  QUALIFIED  IN ITS ENTIRETY BY REFERENCE TO 
10-K FOR THE YEAR ENDED DECEMBER 31, 1996, AS AMENDED, FILED ON APRIL 15, 1997.
</LEGEND>                                                              
<CIK>          0000722051                                              
<NAME>         NCT GROUP, 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                            
<EXCHANGE-RATE>                      1                                 
<CASH>                            1038                                 
<SECURITIES>                         0                                 
<RECEIVABLES>                      620                                 
<ALLOWANCES>                       124                                 
<INVENTORY>                       1350                                 
<CURRENT-ASSETS>                  3167                                 
<PP&E>                            5416                                 
<DEPRECIATION>                    3950                                 
<TOTAL-ASSETS>                    6254                                 
<CURRENT-LIABILITIES>             3878                                 
<BONDS>                              0                                 
<PREFERRED-MANDATORY>                0                                 
<PREFERRED>                          0                                 
<COMMON>                          1312                                 
<OTHER-SE>                        (356)                                
<TOTAL-LIABILITY-AND-EQUITY>      6254                                 
<SALES>                           1069                                 
<TOTAL-REVENUES>                  4840                                 
<CGS>                             1401                                 
<TOTAL-COSTS>                     1696                                 
<OTHER-EXPENSES>                  8312                                 
<LOSS-PROVISION>                   148                                 
<INTEREST-EXPENSE>                1474                                 
<INCOME-PRETAX>                  (6598)                                
<INCOME-TAX>                         0                                 
<INCOME-CONTINUING>              (6598)                                
<DISCONTINUED>                       0                                 
<EXTRAORDINARY>                      0                                 
<CHANGES>                            0                                 
<NET-INCOME>                     (6598)                                
<EPS-PRIMARY>                    (0.05)                                
<EPS-DILUTED>                    (0.05)