<TABLE> <S> <C>


<ARTICLE>                     5
<LEGEND>
                                  MEDQUIST INC.
                        RESTATED FINANCIAL DATA SCHEDULE
                                AS OF AND FOR THE
                  (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
</LEGEND>

       
<S>                                <C>           <C>         <C>           <C>
<PERIOD-TYPE>                      3-MOS         6-MOS       9-MOS         12-MOS
<FISCAL-YEAR-END>                  DEC-31-1997   DEC-31-1997 DEC-31-1997   DEC-31-1997
<PERIOD-END>                       MAR-31-1997   JUN-30-1997 SEP-30-1997   DEC-31-1997
<CASH>                                  10,340         8,955      13,303        12,337 
<SECURITIES>                                 0             0           0             0 
<RECEIVABLES>                           16,551        18,288      18,355        22,011 
<ALLOWANCES>                               317           447         378           479 
<INVENTORY>                                  0             0           0             0 
<CURRENT-ASSETS>                        27,151        27,597      31,729        34,772 
<PP&E>                                  15,356        17,415      18,715        20,611 
<DEPRECIATION>                           6,143         7,529       8,196         9,282 
<TOTAL-ASSETS>                          78,852        81,895      88,305        94,142 
<CURRENT-LIABILITIES>                    7,197         7,654      11,223        11,465 
<BONDS>                                      0             0           0             0 
<PREFERRED-MANDATORY>                        0             0           0             0 
<PREFERRED>                                  0             0           0             0 
<COMMON>                                     0             0           0             0 
<OTHER-SE>                              68,158        70,837      73,804        78,018 
<TOTAL-LIABILITY-AND-EQUITY>            78,852        81,895      88,305        94,142 
<SALES>                                      0             0           0             0 
<TOTAL-REVENUES>                        20,615        43,162      67,746        94,616 
<CGS>                                        0             0           0             0 
<TOTAL-COSTS>                           15,439        32,353      50,754        70,906 
<OTHER-EXPENSES>                         2,237         4,659       7,305        10,077 
<LOSS-PROVISION>                             0             0           0             0 
<INTEREST-EXPENSE>                          67           128         163           194 
<INCOME-PRETAX>                          2,872         6,022       9,524        13,439 
<INCOME-TAX>                             1,118         2,329       3,677         5,192 
<INCOME-CONTINUING>                      1,754         3,693       5,847         8,247 
<DISCONTINUED>                               0             0           0             0 
<EXTRAORDINARY>                              0             0           0             0 
<CHANGES>                                    0             0           0             0 
<NET-INCOME>                             1,754         3,693       5,847         8,247 
<EPS-PRIMARY>                             0.08          0.17        0.27          0.38 
<EPS-DILUTED>                             0.08          0.16        0.25          0.35 
                                              


</TABLE>