<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from the consolidated balance sheet, consolidated statement of operations and consolidated statement of cash flows included in the Company's Form 10-K for the period ending December 31, 1998, and is qualified in its entirety by reference to such financial statements. </LEGEND> <CIK> 0000810467 <NAME> Digital Link Corporation <MULTIPLIER> 1,000 <PERIOD-TYPE> 12-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> DEC-31-1998 <CASH> 296 <SECURITIES> 15,738 <RECEIVABLES> 4,767 <ALLOWANCES> 540 <INVENTORY> 4,306 <CURRENT-ASSETS> 31,675 <PP&E> 11,792 <DEPRECIATION> 9,210 <TOTAL-ASSETS> 54,906 <CURRENT-LIABILITIES> 9,540 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 33,311 <OTHER-SE> 12,055 <TOTAL-LIABILITY-AND-EQUITY> 54,906 <SALES> 54,627 <TOTAL-REVENUES> 54,627 <CGS> 31,442 <TOTAL-COSTS> 67,543 <OTHER-EXPENSES> (2,196) <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> (10,720) <INCOME-TAX> (4,248) <INCOME-CONTINUING> (6,472) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (6,472) <EPS-PRIMARY> (0.71) <EPS-DILUTED> (0.71)