<ARTICLE> 5 <CIK> 0000022701 <NAME> COMMUNICATIONS SYSTEMS, INC. <MULTIPLIER> 1 <CURRENCY> U.S. DOLLARS <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1999 <PERIOD-START> JAN-01-1999 <PERIOD-END> MAR-31-1999 <EXCHANGE-RATE> 1 <CASH> 21,832,810 <SECURITIES> 0 <RECEIVABLES> 20,188,475 <ALLOWANCES> 1,063,334 <INVENTORY> 17,705,069 <CURRENT-ASSETS> 60,488,085 <PP&E> 30,994,518 <DEPRECIATION> 19,903,318 <TOTAL-ASSETS> 85,955,193 <CURRENT-LIABILITIES> 20,446,060 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 439,390 <OTHER-SE> 64,375,344 <TOTAL-LIABILITY-AND-EQUITY> 85,955,193 <SALES> 26,596,892 <TOTAL-REVENUES> 26,596,892 <CGS> 17,561,114 <TOTAL-COSTS> 17,561,114 <OTHER-EXPENSES> 5,774,611 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 203,635 <INCOME-PRETAX> 3,312,459 <INCOME-TAX> 840,000 <INCOME-CONTINUING> 2,472,459 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 2,472,459 <EPS-PRIMARY> 0.28 <EPS-DILUTED> 0.28