<ARTICLE> 5 <CIK> 0000944480 <NAME> GSE SYSTEMS, INC. <MULTIPLIER> 1,000 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> SEP-30-1998 <CASH> 1,937 <SECURITIES> 0 <RECEIVABLES> 23,689 <ALLOWANCES> (776) <INVENTORY> 2,825 <CURRENT-ASSETS> 29,939 <PP&E> 9,081 <DEPRECIATION> (6,784) <TOTAL-ASSETS> 45,514 <CURRENT-LIABILITIES> 27,244 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 21,728 <OTHER-SE> (5,736) <TOTAL-LIABILITY-AND-EQUITY> 45,514 <SALES> 19,244 <TOTAL-REVENUES> 19,244 <CGS> 12,695 <TOTAL-COSTS> 17,504 <OTHER-EXPENSES> (80) <LOSS-PROVISION> 0 <INTEREST-EXPENSE> (81) <INCOME-PRETAX> (3,446) <INCOME-TAX> (1,276) <INCOME-CONTINUING> (2,070) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (2,070) <EPS-PRIMARY> (0.43) <EPS-DILUTED> (0.43)