<ARTICLE> 5 <CIK> 0000086166 <NAME> SAGE LABORATORIES, INC. <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> JUN-30-1998 <PERIOD-START> JUL-01-1997 <PERIOD-END> DEC-27-1997 <CASH> 4,142,767 <SECURITIES> 0 <RECEIVABLES> 2,076,568 <ALLOWANCES> 68,000 <INVENTORY> 2,280,594 <CURRENT-ASSETS> 8,734,731 <PP&E> 7,258,207 <DEPRECIATION> 4,162,527 <TOTAL-ASSETS> 11,981,795 <CURRENT-LIABILITIES> 1,675,961 <BONDS> 416,666 <PREFERRED-MANDATORY> 268,198 <PREFERRED> 0 <COMMON> 0 <OTHER-SE> 0 <TOTAL-LIABILITY-AND-EQUITY> 11,981,195 <SALES> 2,332,115 <TOTAL-REVENUES> 2,332,115 <CGS> 1,381,118 <TOTAL-COSTS> 1,381,118 <OTHER-EXPENSES> 814,423 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 11,670 <INCOME-PRETAX> 196,859 <INCOME-TAX> 75,000 <INCOME-CONTINUING> 0 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 121,859 <EPS-PRIMARY> .11 <EPS-DILUTED> .11