<ARTICLE> 5 <LEGEND> THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM AMERICAN ELECTROMEDICS CORP. FORM 10-QSB FOR THE PERIOD ENDED OCTOBER 31, 1997, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> JUL-31-1998 <PERIOD-END> OCT-31-1997 <CASH> 289 <SECURITIES> 0 <RECEIVABLES> 1,291 <ALLOWANCES> 10 <INVENTORY> 1,471 <CURRENT-ASSETS> 3,631 <PP&E> 667 <DEPRECIATION> (404) <TOTAL-ASSETS> 4,873 <CURRENT-LIABILITIES> 1,747 <BONDS> 720 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 255 <OTHER-SE> 912 <TOTAL-LIABILITY-AND-EQUITY> 4,873 <SALES> 1,830 <TOTAL-REVENUES> 1,830 <CGS> 1,058 <TOTAL-COSTS> 1,058 <OTHER-EXPENSES> 687 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 78 <INCOME-PRETAX> (20) <INCOME-TAX> 0 <INCOME-CONTINUING> (20) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (20) <EPS-PRIMARY> (.01) <EPS-DILUTED> (.01)