<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 FIRST FISCAL QUARTER ENDED SEPTEMBER 27, 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-27-1999
<PERIOD-START>                             JUL-29-1998
<PERIOD-END>                               SEP-27-1998
<CASH>                                          12,741
<SECURITIES>                                    29,145
<RECEIVABLES>                                    7,814
<ALLOWANCES>                                        62
<INVENTORY>                                      4,864
<CURRENT-ASSETS>                                56,291
<PP&E>                                          16,629
<DEPRECIATION>                                   9,513
<TOTAL-ASSETS>                                  65,262
<CURRENT-LIABILITIES>                           10,603
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           139
<OTHER-SE>                                      54,520
<TOTAL-LIABILITY-AND-EQUITY>                    65,262
<SALES>                                         17,078
<TOTAL-REVENUES>                                17,078
<CGS>                                            8,308
<TOTAL-COSTS>                                    8,308
<OTHER-EXPENSES>                                 8,218
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                  1,111
<INCOME-TAX>                                       389
<INCOME-CONTINUING>                                722
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                       722
<EPS-PRIMARY>                                     0.05
<EPS-DILUTED>                                     0.05