<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