<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FERROFLUIDICS CORP.'S BALANCE SHEETS AS OF JUNE 30, 1996 AND THE RESULTS OF OPERATION, AS RESTATED TO REFLECT THE SYSTEMS DIVISION AS DISCONTINUED OPERATIONS, FOR THE YEAR ENDED JUNE 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED JUNE 30, 1996. </LEGEND> <RESTATED> <CIK> 0000353286 <NAME> FERROFLUIDICS CORP. <MULTIPLIER> 1 <CURRENCY> U.S. DOLLARS <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> JUN-30-1996 <PERIOD-START> JUL-01-1995 <PERIOD-END> JUN-30-1996 <EXCHANGE-RATE> 1 <CASH> 1,701,000 <SECURITIES> 0 <RECEIVABLES> 13,077,000 <ALLOWANCES> 320,000 <INVENTORY> 13,829,000 <CURRENT-ASSETS> 30,875,000 <PP&E> 18,367,000 <DEPRECIATION> 9,583,000 <TOTAL-ASSETS> 43,429,000 <CURRENT-LIABILITIES> 18,525,000 <BONDS> 5,000,000 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 35,895,000 <OTHER-SE> (16,193,000) <TOTAL-LIABILITY-AND-EQUITY> 43,429,000 <SALES> 27,226,000 <TOTAL-REVENUES> 27,226,000 <CGS> 14,962,000 <TOTAL-COSTS> 14,962,000 <OTHER-EXPENSES> 11,358,000 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 311,000 <INCOME-PRETAX> 619,000 <INCOME-TAX> 121,000 <INCOME-CONTINUING> 498,000 <DISCONTINUED> 3,322,000 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 3,820,000 <EPS-PRIMARY> .63 <EPS-DILUTED> .61