<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 SECOND FISCAL QUARTER ENDED DECEMBER 28, 1997 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000774937
<NAME> VERILINK CORPORATION
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          JUN-29-1998
<PERIOD-START>                             SEP-29-1997
<PERIOD-END>                               DEC-28-1997
<CASH>                                          25,242
<SECURITIES>                                    13,169
<RECEIVABLES>                                    5,922
<ALLOWANCES>                                        76
<INVENTORY>                                      6,696
<CURRENT-ASSETS>                                52,983
<PP&E>                                          14,493
<DEPRECIATION>                                   7,830
<TOTAL-ASSETS>                                  61,272
<CURRENT-LIABILITIES>                            8,658
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           137
<OTHER-SE>                                      52,477
<TOTAL-LIABILITY-AND-EQUITY>                    61,272
<SALES>                                          9,518
<TOTAL-REVENUES>                                 9,518
<CGS>                                            4,879
<TOTAL-COSTS>                                    4,879
<OTHER-EXPENSES>                                 6,542
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                (1,395)
<INCOME-TAX>                                     (520)
<INCOME-CONTINUING>                              (875)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     (875)
<EPS-PRIMARY>                                   (0.06)
<EPS-DILUTED>                                   (0.06)