<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