<ARTICLE>                     5
<LEGEND>
     This schedule  contains summary financial  information  extracted from VTEL
     Corporation's  Balance  Sheet as of July 31, 1999 and Income  Statement for
     the year then ended and is  qualified  in its  entirety by reference to the
     Company's  Annual Report on Form 10-K for the fiscal period ending July 31,
     1999.
</LEGEND>
<CIK>                         0000884144
<NAME>                        VTEL Corporation
<MULTIPLIER>                  1
<CURRENCY>                    U.S. Dollars

                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>               JUL-31-2000
<PERIOD-START>                  AUG-01-1999
<PERIOD-END>                    OCT-31-1999
<EXCHANGE-RATE>                 1
<CASH>                          11,276,000
<SECURITIES>                    1,370,000
<RECEIVABLES>                   31,006,000
<ALLOWANCES>                    (1,470,000)
<INVENTORY>                     16,000,000
<CURRENT-ASSETS>                60,367,000
<PP&E>                          58,586,000
<DEPRECIATION>                  (30,052,000)
<TOTAL-ASSETS>                  116,065,000
<CURRENT-LIABILITIES>           48,759,000
<BONDS>                         0
<PREFERRED-MANDATORY>           0
<PREFERRED>                     0
<COMMON>                        260,424,000
<OTHER-SE>                      (197,559,000)
<TOTAL-LIABILITY-AND-EQUITY>    116,065,000
<SALES>                         35,066,000
<TOTAL-REVENUES>                35,066,000
<CGS>                           (21,942,000)
<TOTAL-COSTS>                   (18,157,000)
<OTHER-EXPENSES>                11,000
<LOSS-PROVISION>                0
<INTEREST-EXPENSE>              (322,000)
<INCOME-PRETAX>                 (5,344,000)
<INCOME-TAX>                    0
<INCOME-CONTINUING>             (5,344,000)
<DISCONTINUED>                  0
<EXTRAORDINARY>                 0
<CHANGES>                       0
<NET-INCOME>                    (5,344,000)
<EPS-BASIC>                   (.22)
<EPS-DILUTED>                   (.22)