<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> MAR-28-1998 <CASH> 4,454,121 <SECURITIES> 0 <RECEIVABLES> 1,733,409 <ALLOWANCES> 68,000 <INVENTORY> 2,247,706 <CURRENT-ASSETS> 8,994,932 <PP&E> 7,460,875 <DEPRECIATION> 4,308,837 <TOTAL-ASSETS> 12,277,584 <CURRENT-LIABILITIES> 1,979,231 <BONDS> 333,333 <PREFERRED-MANDATORY> 268,548 <PREFERRED> 0 <COMMON> 0 <OTHER-SE> 0 <TOTAL-LIABILITY-AND-EQUITY> 12,277,584 <SALES> 2,660,485 <TOTAL-REVENUES> 2,660,485 <CGS> 1,781,011 <TOTAL-COSTS> 1,781,011 <OTHER-EXPENSES> 846,359 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> (13,300) <INCOME-PRETAX> 94,527 <INCOME-TAX> 27,000 <INCOME-CONTINUING> 0 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 67,527 <EPS-PRIMARY> .06 <EPS-DILUTED> .06