<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> 1,000 <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> JUN-27-1999 <PERIOD-START> JUL-29-1998 <PERIOD-END> MAR-28-1999 <CASH> 20,988 <SECURITIES> 6,317 <RECEIVABLES> 6,216 <ALLOWANCES> 214 <INVENTORY> 6,842 <CURRENT-ASSETS> 41,974 <PP&E> 19,204 <DEPRECIATION> 10,956 <TOTAL-ASSETS> 59,548 <CURRENT-LIABILITIES> 16,295 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 140 <OTHER-SE> 43,113 <TOTAL-LIABILITY-AND-EQUITY> 59,548 <SALES> 12,003 <TOTAL-REVENUES> 12,003 <CGS> 7,392 <TOTAL-COSTS> 7,392 <OTHER-EXPENSES> 13,536 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> (8,650) <INCOME-TAX> 0 <INCOME-CONTINUING> (8,650) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (8,650) <EPS-PRIMARY> (0.62)<F1> <EPS-DILUTED> (0.62) <FN> <F1>"For Purposes of this Exhibit, Primary Means Basic" </FN>