<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from the SM&A Corporation audited financial statements for the twelve months ended December 31, 1998. </LEGEND> <MULTIPLIER> 1000 <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> DEC-31-1998 <CASH> 454 <SECURITIES> 0 <RECEIVABLES> 23,514 <ALLOWANCES> (643) <INVENTORY> 0 <CURRENT-ASSETS> 25,969 <PP&E> 3,002 <DEPRECIATION> (612) <TOTAL-ASSETS> 66,324 <CURRENT-LIABILITIES> 9,990 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 165 <OTHER-SE> 55,164 <TOTAL-LIABILITY-AND-EQUITY> 55,329 <SALES> 68,449 <TOTAL-REVENUES> 68,449 <CGS> 40,483 <TOTAL-COSTS> 55,370 <OTHER-EXPENSES> (1,253) <LOSS-PROVISION> 643 <INTEREST-EXPENSE> 148 <INCOME-PRETAX> 14,599 <INCOME-TAX> 6,072 <INCOME-CONTINUING> 8,527 <DISCONTINUED> (815) <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 7,712 <EPS-PRIMARY> 0.50 <EPS-DILUTED> 0.48