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-31-1998
                 <PERIOD-START>                                         JAN-01-1998
                 <PERIOD-END>                                           MAR-31-1998
                 <CASH>                                               3,858,028
                 <SECURITIES>                                         1,644,791
                 <RECEIVABLES>                                        4,513,829
                 <ALLOWANCES>                                           591,000
                 <INVENTORY>                                          2,074,209
                 <CURRENT-ASSETS>                                    13,833,634
                 <PP&E>                                               6,059,652
                 <DEPRECIATION>                                       1,826,248
                 <TOTAL-ASSETS>                                      25,244,773
                 <CURRENT-LIABILITIES>                               21,826,676
                 <BONDS>                                              6,821,792
                 <PREFERRED-MANDATORY>                                        0
                 <PREFERRED>                                                101
                 <COMMON>                                               614,749
                 <OTHER-SE>                                          (5,638,545)
                 <TOTAL-LIABILITY-AND-EQUITY>                        25,244,773
                 <SALES>                                              7,067,405
                 <TOTAL-REVENUES>                                     7,067,405
                 <CGS>                                                6,336,245
                 <TOTAL-COSTS>                                        6,336,245
                 <OTHER-EXPENSES>                                             0
                 <LOSS-PROVISION>                                             0
                 <INTEREST-EXPENSE>                                     421,312
                 <INCOME-PRETAX>                                     (6,838,682)
                 <INCOME-TAX>                                                 0
                 <INCOME-CONTINUING>                                 (6,838,682)
                 <DISCONTINUED>                                               0
                 <EXTRAORDINARY>                                              0
                 <CHANGES>                                                    0
                 <NET-INCOME>                                        (6,838,682)
                 <EPS-PRIMARY>                                            (0.15)
                 <EPS-DILUTED>                                            (0.15)
        

</TABLE>