WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

<TABLE> <S> <C>



                            FINANCIAL DATA STATEMENT

                 <ARTICLE>                    5
                 <CIK>                        0000881695
                 <NAME>                       PALOMAR MEDICAL TECHNOLOGIES, INC.
       
                 <S>                                                  <C> 
                 <PERIOD-TYPE>                                          3-MOS
                 <FISCAL-YEAR-END>                                      DEC-31-1997
                 <PERIOD-START>                                         JAN-01-1997
                 <PERIOD-END>                                           MAR-31-1997
                 <CASH>                                                15,493,553
                 <SECURITIES>                                           4,127,472
                 <RECEIVABLES>                                          1,961,677
                 <ALLOWANCES>                                             493,000
                 <INVENTORY>                                            8,372,236
                 <CURRENT-ASSETS>                                      33,715,470
                 <PP&E>                                                 6,041,703
                 <DEPRECIATION>                                         1,143,207
                 <TOTAL-ASSETS>                                        70,710,502
                 <CURRENT-LIABILITIES>                                 19,084,473
                 <BONDS>                                               19,407,789
                 <PREFERRED-MANDATORY>                                          0
                 <PREFERRED>                                                  198
                 <COMMON>                                                 320,144
                 <OTHER-SE>                                           (31,897,898)
                 <TOTAL-LIABILITY-AND-EQUITY>                          70,710,502
                 <SALES>                                                2,732,460
                 <TOTAL-REVENUES>                                       2,732,460
                 <CGS>                                                  3,015,716
                 <TOTAL-COSTS>                                          3,015,716
                 <OTHER-EXPENSES>                                               0
                 <LOSS-PROVISION>                                               0
                 <INTEREST-EXPENSE>                                     1,179,007
                 <INCOME-PRETAX>                                      (10,293,513)
                 <INCOME-TAX>                                                   0
                 <INCOME-CONTINUING>                                  (10,293,513)
                 <DISCONTINUED>                                        (5,071,632)
                 <EXTRAORDINARY>                                                0
                 <CHANGES>                                                      0
                 <NET-INCOME>                                         (15,365,145)
                 <EPS-PRIMARY>                                              (0.50)
                 <EPS-DILUTED>                                              (0.50)
        

</TABLE>