<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>