<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
FERROFLUIDICS CORPORATION'S CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 26, 1998
AND FOR ITS CONSOLIDATED RESULTS OF OPERATIONS FOR THE THREE MONTHS THEN ENDED
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH QUARTERLY STATEMENT ON
FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 26, 1998.
</LEGEND>
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          SEP-26-1998
<PERIOD-START>                             JUN-28-1998
<PERIOD-END>                               SEP-26-1998
<EXCHANGE-RATE>                                      1
<CASH>                                       4,563,000
<SECURITIES>                                         0
<RECEIVABLES>                                8,971,000
<ALLOWANCES>                                   250,000
<INVENTORY>                                 12,730,000
<CURRENT-ASSETS>                            27,155,000
<PP&E>                                      17,632,000
<DEPRECIATION>                              11,088,000
<TOTAL-ASSETS>                              38,653,000
<CURRENT-LIABILITIES>                       10,116,000
<BONDS>                                      5,000,000
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                    36,787,000
<OTHER-SE>                                (13,447,000)
<TOTAL-LIABILITY-AND-EQUITY>                38,653,000
<SALES>                                      5,950,000
<TOTAL-REVENUES>                             5,950,000
<CGS>                                        3,747,000
<TOTAL-COSTS>                                3,747,000
<OTHER-EXPENSES>                             2,456,000
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                             153,000
<INCOME-PRETAX>                              (364,000)
<INCOME-TAX>                                     1,000
<INCOME-CONTINUING>                          (365,000)
<DISCONTINUED>                               5,187,000
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                 4,822,000
<EPS-PRIMARY>                                      .78
<EPS-DILUTED>                                      .78