<ARTICLE> 5                           
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE DSI TOYS,
INC. FINANCIAL STATEMENTS AS OF AND FOR THE NINE MONTHS ENDED OCTOBER 31, 1998
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH STATEMENTS.
</LEGEND>
                                      
                                
<PERIOD-TYPE>                   9-MOS 
<FISCAL-YEAR-END>                                   DEC-31-1998
<PERIOD-END>                                        OCT-31-1998
<CASH>                                                1,363,621
<SECURITIES>                                                  0
<RECEIVABLES>                                         9,016,221
<ALLOWANCES>                                         (2,122,703)
<INVENTORY>                                           6,797,276
<CURRENT-ASSETS>                                     17,413,285
<PP&E>                                                5,436,406
<DEPRECIATION>                                       (3,966,196)
<TOTAL-ASSETS>                                       21,302,703
<CURRENT-LIABILITIES>                                16,980,926
<BONDS>                                                       0
<PREFERRED-MANDATORY>                                         0
<PREFERRED>                                                   0
<COMMON>                                                 87,190
<OTHER-SE>                                            4,115,587
<TOTAL-LIABILITY-AND-EQUITY>                         21,302,703
<SALES>                                              48,014,196
<TOTAL-REVENUES>                                     48,014,196
<CGS>                                                37,376,724
<TOTAL-COSTS>                                         8,340,922
<OTHER-EXPENSES>                                         64,185
<LOSS-PROVISION>                                         36,541
<INTEREST-EXPENSE>                                      710,103
<INCOME-PRETAX>                                       1,650,632
<INCOME-TAX>                                            594,228
<INCOME-CONTINUING>                                   1,056,404
<DISCONTINUED>                                                0
<EXTRAORDINARY>                                               0
<CHANGES>                                                     0
<NET-INCOME>                                          1,056,404
<EPS-PRIMARY>                                               .18
<EPS-DILUTED>                                               .18