<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from the third 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> 9-MOS <FISCAL-YEAR-END> AUG-31-1998 <PERIOD-END> MAY-31-1998 <CASH> 523,499 <SECURITIES> 0 <RECEIVABLES> 1,230,651 <ALLOWANCES> 100,000 <INVENTORY> 0 <CURRENT-ASSETS> 2,736,733 <PP&E> 3,143,560 <DEPRECIATION> 1,439,256 <TOTAL-ASSETS> 5,239,185 <CURRENT-LIABILITIES> 695,489 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 672,555 <OTHER-SE> 3,460,790 <TOTAL-LIABILITY-AND-EQUITY> 5,239,185 <SALES> 5,767,940 <TOTAL-REVENUES> 5,767,940 <CGS> 2,279,834 <TOTAL-COSTS> 2,279,834 <OTHER-EXPENSES> 2,991,371 <LOSS-PROVISION> 41,565 <INTEREST-EXPENSE> 32,638 <INCOME-PRETAX> 469,570 <INCOME-TAX> 89,261 <INCOME-CONTINUING> 380,309 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 380,309 <EPS-PRIMARY> .03 <EPS-DILUTED> .03