<ARTICLE>                                                 5
<RESTATED>
<CIK>                                            0000022701
<NAME>                                   COMMUNICATIONS SYSTEMS, INC.
<MULTIPLIER>                                              1
<CURRENCY>                                                U.S. DOLLARS
       
                                                                            
<PERIOD-TYPE>                                             9-MOS             6-MOS             3-MOS
<FISCAL-YEAR-END>                                    DEC-31-1997       DEC-31-1997       DEC-31-1997
<PERIOD-START>                                       JAN-01-1997       JAN-01-1997       JAN-01-1997
<PERIOD-END>                                         SEP-30-1997       JUN-30-1997       MAR-31-1997
<EXCHANGE-RATE>                                           1                 1                 1
<CASH>                                           23,644,909        20,715,678        18,016,563
<SECURITIES>                                        796,100           786,325           909,873
<RECEIVABLES>                                    13,009,181        12,453,420        11,872,707
<ALLOWANCES>                                        796,000           788,000           306,000
<INVENTORY>                                      18,105,242        16,055,091        15,260,324
<CURRENT-ASSETS>                                 56,246,620        50,559,553        47,419,724
<PP&E>                                           26,072,307        25,793,418        24,776,642
<DEPRECIATION>                                   16,845,146        16,355,320        15,792,979
<TOTAL-ASSETS>                                   78,675,835        73,386,000        70,352,179
<CURRENT-LIABILITIES>                            11,782,764        10,072,574         9,302,377
<BONDS>                                                   0                 0                 0
<PREFERRED-MANDATORY>                                     0                 0                 0
<PREFERRED>                                               0                 0                 0
<COMMON>                                            465,357           460,061           459,561
<OTHER-SE>                                       66,427,714        62,853,365        60,590,241
<TOTAL-LIABILITY-AND-EQUITY>                     78,675,835        73,386,000        70,352,179
<SALES>                                          56,787,475        36,997,263        16,816,019
<TOTAL-REVENUES>                                 56,787,475        36,997,263        16,816,019
<CGS>                                            38,674,614        25,659,409        11,825,031
<TOTAL-COSTS>                                    38,674,614        25,659,409        11,825,031
<OTHER-EXPENSES>                                  8,353,346         5,611,137         2,623,506
<LOSS-PROVISION>                                          0                 0                 0
<INTEREST-EXPENSE>                                        0                 0               935
<INCOME-PRETAX>                                  10,991,328         6,501,963         2,743,539
<INCOME-TAX>                                      2,785,000         1,450,000           575,000
<INCOME-CONTINUING>                               8,206,328         5,051,963         2,168,539
<DISCONTINUED>                                            0                 0                 0
<EXTRAORDINARY>                                           0                 0                 0
<CHANGES>                                                 0                 0                 0
<NET-INCOME>                                      8,206,328         5,051,963         2,168,539
<EPS-PRIMARY>                                             0.89              0.55              0.24
<EPS-DILUTED>                                             0.88              0.55              0.24