<ARTICLE> 5 <LEGEND> THIS FINANCIAL SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS CONTAINED IN THE FORM 10-Q OF VERILINK CORPORATION FOR THE FIRST FISCAL QUARTER ENDED SEPTEMBER 28, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> JUN-29-1997 <PERIOD-START> JUN-30-1997 <PERIOD-END> SEP-28-1997 <CASH> 29,723 <SECURITIES> 9,573 <RECEIVABLES> 6,785 <ALLOWANCES> 76 <INVENTORY> 4,571 <CURRENT-ASSETS> 51,926 <PP&E> 14,010 <DEPRECIATION> 7,267 <TOTAL-ASSETS> 60,005 <CURRENT-LIABILITIES> 6,452 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 137 <OTHER-SE> 53,416 <TOTAL-LIABILITY-AND-EQUITY> 60,005 <SALES> 10,013 <TOTAL-REVENUES> 10,013 <CGS> 5,008 <TOTAL-COSTS> 5,008 <OTHER-EXPENSES> 6,577 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> (998) <INCOME-TAX> (369) <INCOME-CONTINUING> (629) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (629) <EPS-PRIMARY> (0.05) <EPS-DILUTED> (0.05)