<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>