<ARTICLE> 5 <LEGEND> This financial schedule contains summary financial information extracted from the financial statements contained in the Form 10-K of Verilink Corporation for the fiscal year ended June 27, 1999 and is qualified in its entirety by reference to such financial statements. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> JUN-27-1999 <PERIOD-START> JUN-29-1998 <PERIOD-END> JUN-27-1999 <CASH> 6,880 <SECURITIES> 11,596 <RECEIVABLES> 9,366 <ALLOWANCES> 205 <INVENTORY> 6,864 <CURRENT-ASSETS> 40,102 <PP&E> 19,516 <DEPRECIATION> 11,810 <TOTAL-ASSETS> 54,281 <CURRENT-LIABILITIES> 14,142 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 141 <OTHER-SE> 39,998 <TOTAL-LIABILITY-AND-EQUITY> 54,281 <SALES> 59,553 <TOTAL-REVENUES> 59,553 <CGS> 31,824 <TOTAL-COSTS> 31,824 <OTHER-EXPENSES> 42,630 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> (13,666) <INCOME-TAX> (0) <INCOME-CONTINUING> (13,666) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (13,666) <EPS-BASIC> (0.98) <EPS-DILUTED> (0.98)