<ARTICLE>                     5
<LEGEND>
                                                                    Exhibit 27.1


                            CASTELLE AND SUBSIDIARIES
                             Financial Data Schedule

This  schedule  contains  summary  financial   information  extracted  from  the
Company's Financial  Statements for the three month period ending March 31, 2000
included in the  Company's  Form 10-Q filed May 9, 2000 and is  qualified in its
entirety by reference to such statements.
</LEGEND>
<MULTIPLIER>                                               1,000

                                                        
<PERIOD-TYPE>                                              3-MOS
<FISCAL-YEAR-END>                                    DEC-31-2000
<PERIOD-END>                                         MAR-31-2000
<CASH>                                                     4,563
<SECURITIES>                                                   0
<RECEIVABLES>                                              1,410
<ALLOWANCES>                                               (205)
<INVENTORY>                                              1,305
<CURRENT-ASSETS>                                           7,536
<PP&E>                                                     1,591
<DEPRECIATION>                                           (1,269)
<TOTAL-ASSETS>                                             7,928
<CURRENT-LIABILITIES>                                      3,713
<BONDS>                                                        0
<PREFERRED-MANDATORY>                                          0
<PREFERRED>                                                    0
<COMMON>                                                  29,015
<OTHER-SE>                                                  (54)
<TOTAL-LIABILITY-AND-EQUITY>                               7,928
<SALES>                                                    4,100
<TOTAL-REVENUES>                                           4,100
<CGS>                                                      1,649
<TOTAL-COSTS>                                              1,649
<OTHER-EXPENSES>                                           2,283
<LOSS-PROVISION>                                               0
<INTEREST-EXPENSE>                                           (6)
<INCOME-PRETAX>                                              174
<INCOME-TAX>                                                   6
<INCOME-CONTINUING>                                          168
<DISCONTINUED>                                                 0
<EXTRAORDINARY>                                                0
<CHANGES>                                                      0
<NET-INCOME>                                                 168
<EPS-BASIC>                                               0.04
<EPS-DILUTED>                                               0.03