<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM PONDER INDUSTRIES, INC.'S CONSOLIDATED BALANCE SHEET AS OF AUGUST 31, 1997, AND ITS CONSOLIDATED STATEMENT OF OPERATIONS FOR THE YEAR THEN ENDED AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> AUG-31-1997 <PERIOD-END> AUG-31-1997 <CASH> 4 <SECURITIES> 800 <RECEIVABLES> 4,791 <ALLOWANCES> 657 <INVENTORY> 2,622 <CURRENT-ASSETS> 7,606 <PP&E> 31,383 <DEPRECIATION> 14,278 <TOTAL-ASSETS> 26,617 <CURRENT-LIABILITIES> 16,452 <BONDS> 7,050 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 176 <OTHER-SE> 1,293 <TOTAL-LIABILITY-AND-EQUITY> 26,617 <SALES> 21,875 <TOTAL-REVENUES> 21,875 <CGS> 9,555 <TOTAL-COSTS> 9,555 <OTHER-EXPENSES> 17,150 <LOSS-PROVISION> 519 <INTEREST-EXPENSE> 2,402 <INCOME-PRETAX> (9,921) <INCOME-TAX> 0 <INCOME-CONTINUING> (9,921) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (9,921) <EPS-PRIMARY> (.73) <EPS-DILUTED> (.73)