<ARTICLE>                                                       5
<CIK>                                                  0000022701
<NAME>                       COMMUNICATIONS SYSTEMS, INC.
<MULTIPLIER>                                                    1
<CURRENCY>                                           U.S. DOLLARS
                              
                                                   
<PERIOD-TYPE>                                              12-MOS
<FISCAL-YEAR-END>                                     DEC-31-1998
<PERIOD-START>                                        JAN-01-1998
<PERIOD-END>                                          DEC-31-1998
<EXCHANGE-RATE>                                                 1
<CASH>                                                 20,405,363
<SECURITIES>                                                    0
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<PP&E>                                                 30,654,182
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<EPS-PRIMARY>                                                0.87
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