<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)