<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the second
quarter 10-QSB for the fiscal year ending August 31, 1999 and is qualified in
its entirety by reference to such financial statements.
</LEGEND>
<CIK> 0000835412
<NAME> TMS, INC>
       
                                        
<PERIOD-TYPE>                              3-MOS
<FISCAL-YEAR-END>                          AUG-31-1999
<PERIOD-END>                               NOV-30-1998
<CASH>                                         347,447
<SECURITIES>                                         0
<RECEIVABLES>                                1,550,481
<ALLOWANCES>                                   179,791
<INVENTORY>                                          0
<CURRENT-ASSETS>                             2,395,231
<PP&E>                                       3,025,373
<DEPRECIATION>                               1,490,763
<TOTAL-ASSETS>                               4,655,039
<CURRENT-LIABILITIES>                          676,077
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                       686,565
<OTHER-SE>                                   2,925,978
<TOTAL-LIABILITY-AND-EQUITY>                 4,655,039
<SALES>                                      1,127,316
<TOTAL-REVENUES>                             1,127,316
<CGS>                                          694,630
<TOTAL-COSTS>                                1,790,295
<OTHER-EXPENSES>                             1,095,665
<LOSS-PROVISION>                                28,652
<INTEREST-EXPENSE>                               8,644
<INCOME-PRETAX>                              (667,620)
<INCOME-TAX>                                     (955)
<INCOME-CONTINUING>                          (666,665)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                 (666,665)
<EPS-PRIMARY>                                    (.05)
<EPS-DILUTED>                                    (.05)