<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 SECOND FISCAL QUARTER ENDED DECEMBER 28, 1998 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1000
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          JUN-27-1999
<PERIOD-START>                             JUL-29-1998
<PERIOD-END>                               DEC-27-1998
<CASH>                                          14,525
<SECURITIES>                                    15,225
<RECEIVABLES>                                   11,243
<ALLOWANCES>                                       191
<INVENTORY>                                      6,272
<CURRENT-ASSETS>                                48,977
<PP&E>                                          18,590
<DEPRECIATION>                                  10,164
<TOTAL-ASSETS>                                  66,111
<CURRENT-LIABILITIES>                           14,290
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           139
<OTHER-SE>                                      51,682
<TOTAL-LIABILITY-AND-EQUITY>                    66,111
<SALES>                                         17,107
<TOTAL-REVENUES>                                17,107
<CGS>                                            8,435
<TOTAL-COSTS>                                    8,435
<OTHER-EXPENSES>                                12,291
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                (3,228)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                            (3,228)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   (3,228)
<EPS-PRIMARY>                                   (0.23)<F1>
<EPS-DILUTED>                                   (0.23)
<FN>
<F1>FOR PURPOSES OF THIS EXHIBIT, PRIMARY MEANS BASIC.
</FN>