<ARTICLE>                     5
<LEGEND>
     THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM VTEL 
     CORPORATION'S BALANCE SHEET & INCOME STATEMENT FOR THE THREE MONTHS ENDED 
     1/31/97, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH 1/31/97 
     10-Q FILING.
</LEGEND>
<CIK>                         0000884144
<NAME>                        VTEL CORPORATION
<MULTIPLIER>                                   1
<CURRENCY>                                     US DOLLARS
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                              JUL-31-1997
<PERIOD-START>                                 NOV-01-1996
<PERIOD-END>                                   JAN-31-1997
<EXCHANGE-RATE>                                1
<CASH>                                         1,474,000
<SECURITIES>                                   41,213,000
<RECEIVABLES>                                  27,187,000
<ALLOWANCES>                                   (274,000)
<INVENTORY>                                    10,533,000
<CURRENT-ASSETS>                               81,272,000
<PP&E>                                         25,824,000
<DEPRECIATION>                                 (11,289,000)
<TOTAL-ASSETS>                                 111,634,000
<CURRENT-LIABILITIES>                          18,423,000
<BONDS>                                        0
<PREFERRED-MANDATORY>                          0
<PREFERRED>                                    0
<COMMON>                                       125,092,000
<OTHER-SE>                                     (31,881,000)
<TOTAL-LIABILITY-AND-EQUITY>                   111,634,000
<SALES>                                        29,123,000
<TOTAL-REVENUES>                               29,123,000
<CGS>                                          (16,561,000)
<TOTAL-COSTS>                                  (12,351,000)
<OTHER-EXPENSES>                               627,000
<LOSS-PROVISION>                               0
<INTEREST-EXPENSE>                             0
<INCOME-PRETAX>                                838,000
<INCOME-TAX>                                   (25,000)
<INCOME-CONTINUING>                            813,000
<DISCONTINUED>                                 0
<EXTRAORDINARY>                                0
<CHANGES>                                      0
<NET-INCOME>                                   813,000
<EPS-PRIMARY>                                  .06
<EPS-DILUTED>                                  .06