<ARTICLE> 5
<LEGEND>
THIS FINANCIAL SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
THE FINANCIAL STATEMENTS CONTAINED IN THE FORM 10-K OF VERILINK CORPORATION FOR
THE FISCAL YEAR ENDED JUNE 28, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUN-28-1998
<PERIOD-START>                             JUN-30-1997
<PERIOD-END>                               JUN-28-1998
<CASH>                                          16,304
<SECURITIES>                                    26,111
<RECEIVABLES>                                    6,054
<ALLOWANCES>                                        62
<INVENTORY>                                      4,900
<CURRENT-ASSETS>                                55,181
<PP&E>                                          16,089
<DEPRECIATION>                                   9,043
<TOTAL-ASSETS>                                  63,828
<CURRENT-LIABILITIES>                           10,018
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           138
<OTHER-SE>                                      53,672
<TOTAL-LIABILITY-AND-EQUITY>                    63,828
<SALES>                                         50,915
<TOTAL-REVENUES>                                50,915
<CGS>                                           25,794
<TOTAL-COSTS>                                   25,794
<OTHER-EXPENSES>                                28,866
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                (1,679)
<INCOME-TAX>                                     (608)
<INCOME-CONTINUING>                            (1,071)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   (1,071)
<EPS-PRIMARY>                                   (0.08)<F1>
<EPS-DILUTED>                                   (0.08)
<FN>
<F1>FOR PURPOSES OF THIS EXHIBIT, PRIMARY MEANS BASIC.
</FN>