<TABLE> <S> <C>


<ARTICLE>                     5
<LEGEND>
THIS  SCHEDULE  CONTAINS  SUMMARY  FINANCIAL   INFORMATION  EXTRACTED  FROM  THE
CONSOLIDATED  BALANCE  SHEET AT DECEMBER  31, 1997 AND THE RELATED  CONSOLIDATED
STATEMENTS OF INCOME AND OF CASH FLOWS FOR THE TWELVE MONTHS ENDED  DECEMBER 31,
1997 OF THREE-FIVE  SYSTEMS,  INC. AND ITS  SUBSIDIARIES AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH  FINANCIAL  STATEMENTS.  THIS EXHIBIT SHALL NOT BE
DEEMED  FILED FOR THE  PURPOSE OF SECTION 11 OF THE  SECURITIES  ACT OF 1933 AND
SECTION 18 OF THE SECURITIES  EXCHANGE ACT OF 1934, OR OTHERWISE  SUBJECT TO THE
LIABILITY  OF SUCH  SECTIONS,  NOR SHALL IT BE DEEMED A PART OF ANY OTHER FILING
WHICH INCORPORATES THIS REPORT BY REFERENCE,  UNLESS SUCH OTHER FILING EXPRESSLY
INCORPORATES THIS EXHIBIT BY REFERENCE.
</LEGEND>
<MULTIPLIER>                  1,000
<CURRENCY>                    U.S. Dollars
       
<S>                           <C>
<PERIOD-TYPE>                 YEAR
<FISCAL-YEAR-END>                                                    DEC-31-1997
<PERIOD-START>                                                       JAN-01-1997
<PERIOD-END>                                                         DEC-31-1997
<EXCHANGE-RATE>                                                                1
<CASH>                                                                    16,371
<SECURITIES>                                                                   0
<RECEIVABLES>                                                             13,120
<ALLOWANCES>                                                                 580
<INVENTORY>                                                                8,255
<CURRENT-ASSETS>                                                          42,705
<PP&E>                                                                    42,235
<DEPRECIATION>                                                            12,388
<TOTAL-ASSETS>                                                            72,835
<CURRENT-LIABILITIES>                                                     13,592
<BONDS>                                                                        0
<PREFERRED-MANDATORY>                                                          0
<PREFERRED>                                                                    0
<COMMON>                                                                      79
<OTHER-SE>                                                                     0
<TOTAL-LIABILITY-AND-EQUITY>                                              72,835
<SALES>                                                                   84,642
<TOTAL-REVENUES>                                                          84,642
<CGS>                                                                     64,760
<TOTAL-COSTS>                                                             76,423
<OTHER-EXPENSES>                                                             193
<LOSS-PROVISION>                                                               0
<INTEREST-EXPENSE>                                                             0
<INCOME-PRETAX>                                                            8,577
<INCOME-TAX>                                                               3,334
<INCOME-CONTINUING>                                                        5,243
<DISCONTINUED>                                                                 0
<EXTRAORDINARY>                                                                0
<CHANGES>                                                                      0
<NET-INCOME>                                                               5,243
<EPS-PRIMARY>                                                                .67
<EPS-DILUTED>                                                                .65
        

</TABLE>