<ARTICLE> 5 <LEGEND> MEDQUIST INC. FINANCIAL DATA SCHEDULE AS OF AND FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997 (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA) </LEGEND> <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-END> SEP-30-1997 <CASH> 13,300 <SECURITIES> 0 <RECEIVABLES> 16,711 <ALLOWANCES> 378 <INVENTORY> 0 <CURRENT-ASSETS> 30,071 <PP&E> 16,114 <DEPRECIATION> 6,903 <TOTAL-ASSETS> 85,334 <CURRENT-LIABILITIES> 9,800 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 57,647 <OTHER-SE> 14,680 <TOTAL-LIABILITY-AND-EQUITY> 85,334 <SALES> 0 <TOTAL-REVENUES> 60,707 <CGS> 0 <TOTAL-COSTS> 44,674 <OTHER-EXPENSES> 7,045 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 150 <INCOME-PRETAX> 8,838 <INCOME-TAX> 3,416 <INCOME-CONTINUING> 5,422 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 5,422 <EPS-PRIMARY> 0.48 <EPS-DILUTED> 0.48