<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
FERROFLUIDICS CORPORATION'S CONSOLIDATED BALANCE SHEET AS OF DECEMBER 27, 1997
AND ITS CONSOLIDATED RESULTS OF OPERATIONS, AS RESTATED TO REFLECT THE SYSTEMS
DIVISION AS DISCONTINUED OPERATIONS, FOR THE SIX MONTHS THEN ENDED AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TOSUCH QUARTERLY STATEMENT ON FORM 10-Q 
FOR THE SIX MONTHS ENDED DECEMBER 27, 1997.
</LEGEND>
<RESTATED> 
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-27-1997
<PERIOD-START>                             JUN-29-1997
<PERIOD-END>                               DEC-27-1997
<EXCHANGE-RATE>                                      1
<CASH>                                       1,130,000
<SECURITIES>                                         0
<RECEIVABLES>                               17,168,000
<ALLOWANCES>                                   222,060
<INVENTORY>                                 13,941,000
<CURRENT-ASSETS>                            34,005,000
<PP&E>                                      21,449,000
<DEPRECIATION>                              11,541,000
<TOTAL-ASSETS>                              49,016,000
<CURRENT-LIABILITIES>                       20,969,000
<BONDS>                                      5,000,000
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                    36,631,000
<OTHER-SE>                                (13,753,000)
<TOTAL-LIABILITY-AND-EQUITY>                49,016,000
<SALES>                                     13,468,000
<TOTAL-REVENUES>                            13,468,000
<CGS>                                        6,973,000
<TOTAL-COSTS>                                6,973,000
<OTHER-EXPENSES>                             4,519,000
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                             314,000
<INCOME-PRETAX>                              1,693,000
<INCOME-TAX>                                   130,000
<INCOME-CONTINUING>                          1,563,000
<DISCONTINUED>                               (295,000)
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                 1,268,000
<EPS-PRIMARY>                                      .21
<EPS-DILUTED>                                      .20