<ARTICLE> 5 <LEGEND> CASTELLE FINANCIAL DATA SCHEDULE This schedule contains summary financial information extracted from the Company's Financial Statements for the nine month period ending September 26, 1997 included in the Company's Form 10-Q filed November 10, 1997 and is qualified in its entirety by reference to such statements </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-END> SEP-26-1997 <CASH> 6,760 <SECURITIES> 0 <RECEIVABLES> 6,347 <ALLOWANCES> 484 <INVENTORY> 3,597 <CURRENT-ASSETS> 18,451 <PP&E> 4,372 <DEPRECIATION> 3,390 <TOTAL-ASSETS> 22,381 <CURRENT-LIABILITIES> 6,590 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 23,819 <OTHER-SE> 0 <TOTAL-LIABILITY-AND-EQUITY> 22,381 <SALES> 23,756 <TOTAL-REVENUES> 20,018 <CGS> 9,192 <TOTAL-COSTS> 9,192 <OTHER-EXPENSES> 11,738 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> (755) <INCOME-TAX> 294 <INCOME-CONTINUING> (1,049) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (1,049) <EPS-PRIMARY> (0.24) <EPS-DILUTED> (0.24)