<ARTICLE> 5 <LEGEND> THIS FINANCIAL SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS CONTAINED IN THE FORM 10-K OF VERILINK CORPORATION FOR THE FISCAL YEAR ENDED JUNE 29, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> JUN-29-1997 <PERIOD-START> JUL-01-1996 <PERIOD-END> JUN-29-1997 <CASH> 36,596 <SECURITIES> 2,454 <RECEIVABLES> 8,538 <ALLOWANCES> 76 <INVENTORY> 4,453 <CURRENT-ASSETS> 53,137 <PP&E> 13,700 <DEPRECIATION> 7,093 <TOTAL-ASSETS> 60,687 <CURRENT-LIABILITIES> 6,920 <BONDS> 0 <PREFERRED-MANDATORY> 136 <PREFERRED> 0 <COMMON> 0 <OTHER-SE> 53,631 <TOTAL-LIABILITY-AND-EQUITY> 60,687 <SALES> 57,170 <TOTAL-REVENUES> 57,170 <CGS> 28,325 <TOTAL-COSTS> 28,325 <OTHER-EXPENSES> 24,013 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 6,875 <INCOME-TAX> 2,681 <INCOME-CONTINUING> 4,194 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 4,194 <EPS-PRIMARY> .29 <EPS-DILUTED> .29