<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from the second quarter 10-QSB for the fiscal year ending August 31, 1998 and is qualified in its entirety by reference to such financial statements. </LEGEND> <CIK> 0000835412 <NAME> TMS, INC. <PERIOD-TYPE> 6-MOS <FISCAL-YEAR-END> AUG-31-1998 <PERIOD-END> FEB-28-1998 <CASH> 186,829 <SECURITIES> 0 <RECEIVABLES> 1,678,816 <ALLOWANCES> 164,589 <INVENTORY> 0 <CURRENT-ASSETS> 2,890,233 <PP&E> 3,101,018 <DEPRECIATION> 1,343,577 <TOTAL-ASSETS> 5,414,178 <CURRENT-LIABILITIES> 874,677 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 672,555 <OTHER-SE> 3,435,326 <TOTAL-LIABILITY-AND-EQUITY> 5,414,178 <SALES> 4,051,305 <TOTAL-REVENUES> 4,051,305 <CGS> 1,535,700 <TOTAL-COSTS> 1,535,700 <OTHER-EXPENSES> 2,055,408 <LOSS-PROVISION> 33,049 <INTEREST-EXPENSE> 22,474 <INCOME-PRETAX> 439,680 <INCOME-TAX> 83,582 <INCOME-CONTINUING> 356,098 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 356,098 <EPS-PRIMARY> .03 <EPS-DILUTED> .03