<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 THIRD FISCAL QUARTER ENDED MARCH 29, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> JUN-28-1998 <PERIOD-START> DEC-29-1997 <PERIOD-END> MAR-29-1998 <CASH> 21,663 <SECURITIES> 15,323 <RECEIVABLES> 8,250 <ALLOWANCES> 76 <INVENTORY> 5,712 <CURRENT-ASSETS> 52,908 <PP&E> 14,919 <DEPRECIATION> 8,437 <TOTAL-ASSETS> 60,971 <CURRENT-LIABILITIES> 8,375 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 138 <OTHER-SE> 52,458 <TOTAL-LIABILITY-AND-EQUITY> 60,971 <SALES> 14,081 <TOTAL-REVENUES> 14,081 <CGS> 7,361 <TOTAL-COSTS> 7,361 <OTHER-EXPENSES> 7,673 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> (470) <INCOME-TAX> 0 <INCOME-CONTINUING> (470) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (470) <EPS-PRIMARY> (0.03)<F1> <EPS-DILUTED> (0.03) <FN> <F1>For Purposes of This Exhibit, Primary means Basic. </FN>