<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM VARI-L'S
AUDITED FINANCIAL STATEMENTS PREPARED AS OF DECEMBER 31, 1996 AND FOR THE
TWELVE-MONTH PERIOD THEN ENDED, INCLUDED WITH ITS 10-KSB FILING WITH THE
SECURITIES AND EXCHANGE COMMISSION FOR THE FISCAL YEAR ENDED DECEMBER 31, 1996,
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-END>                               DEC-31-1996
<CASH>                                           1,225
<SECURITIES>                                         0
<RECEIVABLES>                                    3,386
<ALLOWANCES>                                         4
<INVENTORY>                                      7,741
<CURRENT-ASSETS>                                13,341
<PP&E>                                          15,759
<DEPRECIATION>                                   2,654
<TOTAL-ASSETS>                                  28,115
<CURRENT-LIABILITIES>                            4,921
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                            40
<OTHER-SE>                                      17,956
<TOTAL-LIABILITY-AND-EQUITY>                    28,115
<SALES>                                         12,211
<TOTAL-REVENUES>                                12,357
<CGS>                                            6,227
<TOTAL-COSTS>                                    6,227
<OTHER-EXPENSES>                                 3,630
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 468
<INCOME-PRETAX>                                  2,032
<INCOME-TAX>                                       854
<INCOME-CONTINUING>                              1,178
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     1,178
<EPS-PRIMARY>                                      .30
<EPS-DILUTED>                                      .30