<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, AS RESTATED, FOR THE THREE
MONTHS THEN ENDED AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
QUARTERLY STATEMENTS ON FORM 10-Q FOR THE THREE MONTHS ENDED SEPTEMBER 26, 1999.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1
<CURRENCY> USDOLLARS

                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          JUL-03-1999
<PERIOD-START>                             JUN-28-1998
<PERIOD-END>                               SEP-26-1998
<EXCHANGE-RATE>                                      1
<CASH>                                       4,563,000
<SECURITIES>                                         0
<RECEIVABLES>                                8,971,000
<ALLOWANCES>                                   350,000
<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>                             2,522,000
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                             153,000
<INCOME-PRETAX>                              (430,000)
<INCOME-TAX>                                     1,000
<INCOME-CONTINUING>                          (431,000)
<DISCONTINUED>                               5,253,000
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                 4,822,000
<EPS-BASIC>                                     (0.07)
<EPS-DILUTED>                                   (0.07)