
<TABLE> <S> <C>

<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
financial statements contained in the Company's Form 10Q for the period
ending March 31, 1996 and is qualified in its entirety by reference to
such financial statements.
</LEGEND>
<CIK> 0000942124
<NAME> AG ASSOCIATES, INC.
<MULTIPLIER> 1,000

       
<S>                                  <C>
<PERIOD-TYPE>                        6-MOS
<FISCAL-YEAR-END>                    SEP-30-1996
<PERIOD-END>                         MAR-31-1996
<CASH>                                    7,242
<SECURITIES>                              7,874
<RECEIVABLES>                            14,292
<ALLOWANCES>                                  0
<INVENTORY>                              12,514
<CURRENT-ASSETS>                         46,633
<PP&E>                                    7,529
<DEPRECIATION>                                0
<TOTAL-ASSETS>                           54,401
<CURRENT-LIABILITIES>                    17,070
<BONDS>                                      65
<PREFERRED-MANDATORY>                         0
<PREFERRED>                                   0
<COMMON>                                 35,361
<OTHER-SE>                                1,905
<TOTAL-LIABILITY-AND-EQUITY>             54,401
<SALES>                                       0
<TOTAL-REVENUES>                         23,200
<CGS>                                         0
<TOTAL-COSTS>                            11,971
<OTHER-EXPENSES>                          7,359
<LOSS-PROVISION>                              0
<INTEREST-EXPENSE>                         (167)
<INCOME-PRETAX>                           3,775
<INCOME-TAX>                              1,548
<INCOME-CONTINUING>                       2,227
<DISCONTINUED>                                0
<EXTRAORDINARY>                               0
<CHANGES>                                     0
<NET-INCOME>                              2,227
<EPS-PRIMARY>                              0.37
<EPS-DILUTED>                              0.37
        

</TABLE>
