<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>