<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