<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)