<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 June 30, 2000
included  in  the Company's Form 10-Q filed August 14, 2000 and is qualified in
its entirety by reference to such statements.
</LEGEND>
<MULTIPLIER>                                              1,000


                                                         
<PERIOD-TYPE>                                              3-MOS
<FISCAL-YEAR-END>                                    DEC-31-1999
<PERIOD-END>                                         JUN-30-2000
<CASH>                                                     4,761
<SECURITIES>                                                   0
<RECEIVABLES>                                              2,072
<ALLOWANCES>                                              (158)
<INVENTORY>                                                1,426
<CURRENT-ASSETS>                                           8,266
<PP&E>                                                     1,657
<DEPRECIATION>                                           (1,346)
<TOTAL-ASSETS>                                             8,647
<CURRENT-LIABILITIES>                                      4,199
<BONDS>                                                        0
<PREFERRED-MANDATORY>                                          0
<PREFERRED>                                                    0
<COMMON>                                                  28,984
<OTHER-SE>                                              (24,536)
<TOTAL-LIABILITY-AND-EQUITY>                               8,647
<SALES>                                                    3,760
<TOTAL-REVENUES>                                           3,760
<CGS>                                                      1,308
<TOTAL-COSTS>                                              1,308
<OTHER-EXPENSES>                                           2,237
<LOSS-PROVISION>                                               0
<INTEREST-EXPENSE>                                           (4)
<INCOME-PRETAX>                                              211
<INCOME-TAX>                                                   0
<INCOME-CONTINUING>                                          211
<DISCONTINUED>                                                 0
<EXTRAORDINARY>                                                0
<CHANGES>                                                      0
<NET-INCOME>                                                 211
<EPS-BASIC>                                                 0.04
<EPS-DILUTED>                                               0.04