<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>