<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from the balance sheet and statement of operations of the Company's Form 10-Q for the year to date, and is qualified in its entirety by reference to such financial statements. </LEGEND> <CIK>0000846535 <NAME> VARTECH SYSTEMS INC. <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> JUL-31-2000 <PERIOD-END> OCT-31-2000 <CASH> 7951 <SECURITIES> 0 <RECEIVABLES> 660313 <ALLOWANCES> 0 <INVENTORY> 357286 <CURRENT-ASSETS> 1088467 <PP&E> 557350 <DEPRECIATION> 0 <TOTAL-ASSETS> 1515448 <CURRENT-LIABILITIES> 903235 <BONDS> 0 <COMMON> 2100 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <OTHER-SE> 575658 <TOTAL-LIABILITY-AND-EQUITY> 1515448 <SALES> 1667223 <TOTAL-REVENUES> 1667223 <CGS> 872646 <TOTAL-COSTS> 872646 <OTHER-EXPENSES> 682839 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 11223 <INCOME-PRETAX> 100515 <INCOME-TAX> 36033 <INCOME-CONTINUING> 64482 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 64482 <EPS-BASIC> 0.03 <EPS-DILUTED> 0.03