<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONDENSED CONSOLIDATED BALANCE SHEET AND CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS FOUND ON PAGES 3 - 6 OF THE COMPANY'S QUARTERLY REPORT ON FORM 10-QSB FOR THE QUARTER ENDED FEBRUARY 29, 1996 </LEGEND> <CIK> 0000794876 <NAME> APPLIED RESEARCH CORP <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> MAY-31-1995 <PERIOD-START> JUN-01-1995 <PERIOD-END> FEB-29-1996 <CASH> 20,768 <SECURITIES> 0 <RECEIVABLES> 1,768,860 <ALLOWANCES> 0 <INVENTORY> 4,012 <CURRENT-ASSETS> 1,851,950 <PP&E> 979,856 <DEPRECIATION> 835,947 <TOTAL-ASSETS> 2,049,289 <CURRENT-LIABILITIES> 4,046,528 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 3,155 <OTHER-SE> (1,997,239) <TOTAL-LIABILITY-AND-EQUITY> 2,049,289 <SALES> 6,782,276 <TOTAL-REVENUES> 6,782,276 <CGS> 6,771,157 <TOTAL-COSTS> 6,771,157 <OTHER-EXPENSES> 563,265 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 306,276 <INCOME-PRETAX> (552,146) <INCOME-TAX> 0 <INCOME-CONTINUING> (552,146) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (552,146) <EPS-PRIMARY> (0.09) <EPS-DILUTED> (0.09)