<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