<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
FERROFLUIDICS CORPORATION'S CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 27, 1997
AND FOR ITS CONSOLIDATED RESULTS OF OPERATIONS, AS RESTATED TO REFLECT THE 
SYSTEMS DIVISION AS DISCONTINUED 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 27, 1997.
</LEGEND>  
<RESTATED>
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          SEP-27-1997
<PERIOD-START>                             JUN-29-1997
<PERIOD-END>                               SEP-27-1997
<EXCHANGE-RATE>                                      1
<CASH>                                       1,061,000
<SECURITIES>                                         0
<RECEIVABLES>                               13,389,000
<ALLOWANCES>                                   210,000
<INVENTORY>                                 14,847,000
<CURRENT-ASSETS>                            31,140,000
<PP&E>                                      19,467,000
<DEPRECIATION>                              11,297,000
<TOTAL-ASSETS>                              44,643,000
<CURRENT-LIABILITIES>                       17,242,000
<BONDS>                                      5,000,000
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                    36,635,000
<OTHER-SE>                                (14,345,000)
<TOTAL-LIABILITY-AND-EQUITY>                44,643,000
<SALES>                                      6,610,000
<TOTAL-REVENUES>                             6,610,000
<CGS>                                        3,753,000
<TOTAL-COSTS>                                3,753,000
<OTHER-EXPENSES>                             2,255,000
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                             144,000
<INCOME-PRETAX>                                377,000
<INCOME-TAX>                                    60,000
<INCOME-CONTINUING>                            317,000
<DISCONTINUED>                                 339,000
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   656,000
<EPS-PRIMARY>                                      .11
<EPS-DILUTED>                                      .11