<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
audited financial statements of Tera Computer Company for the year ended
Dec 31, 1998 and is qualified in its entirety by reference to such financial
statements.
</LEGEND>


                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               DEC-31-1998
<CASH>                                       3,161,867
<SECURITIES>                                         0
<RECEIVABLES>                                  378,933
<ALLOWANCES>                                         0
<INVENTORY>                                 10,246,029
<CURRENT-ASSETS>                            15,094,490
<PP&E>                                       7,960,326
<DEPRECIATION>                             (3,458,713)
<TOTAL-ASSETS>                              20,288,237
<CURRENT-LIABILITIES>                        7,825,896
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                  5,674,406
<COMMON>                                    68,744,437
<OTHER-SE>                                (62,529,556)
<TOTAL-LIABILITY-AND-EQUITY>                20,288,237
<SALES>                                      1,987,993
<TOTAL-REVENUES>                             1,987,993
<CGS>                                      (4,343,663)
<TOTAL-COSTS>                              (4,343,663)
<OTHER-EXPENSES>                          (17,879,414)
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                           (187,759)
<INCOME-PRETAX>                           (19,804,238)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                       (19,804,238)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                              (20,736,628)
<EPS-BASIC>                                   (1.70)
<EPS-DILUTED>                                   (1.70)