<ARTICLE>           5
<LEGEND>  


                                       E-1
                                                                    Exhibit 27.1


                            CASTELLE AND SUBSIDIARIES
                             FINANCIAL DATA SCHEDULE

This  schedule  contains  summary  financial   information  extracted  from  the
Company's  Financial  Statements  for the six month  period  ending July 3, 1998
included in the  Company's  Form 10-Q filed  August 17, 1998 and is qualified in
its entirety by reference to such statements.
</LEGEND>
<MULTIPLIER>                                               1,000
       
                                                        
<PERIOD-TYPE>                                              6-MOS
<FISCAL-YEAR-END>                                    DEC-31-1998
<PERIOD-END>                                         JUL-03-1998
<CASH>                                                     6,435
<SECURITIES>                                                   0
<RECEIVABLES>                                              4,810
<ALLOWANCES>                                                 490
<INVENTORY>                                                2,431
<CURRENT-ASSETS>                                          14,835
<PP&E>                                                     4,579
<DEPRECIATION>                                           (3,764)
<TOTAL-ASSETS>                                            19,012
<CURRENT-LIABILITIES>                                      4,225
<BONDS>                                                        0
<PREFERRED-MANDATORY>                                          0
<PREFERRED>                                                    0
<COMMON>                                                  29,477
<OTHER-SE>                                              (14,842)
<TOTAL-LIABILITY-AND-EQUITY>                              19,012
<SALES>                                                        0
<TOTAL-REVENUES>                                          12,698
<CGS>                                                      6,068
<TOTAL-COSTS>                                              6,068
<OTHER-EXPENSES>                                           7,546
<LOSS-PROVISION>                                               0
<INTEREST-EXPENSE>                                         (120)
<INCOME-PRETAX>                                            (779)
<INCOME-TAX>                                                (37)
<INCOME-CONTINUING>                                        (742)
<DISCONTINUED>                                                 0
<EXTRAORDINARY>                                                0
<CHANGES>                                                      0
<NET-INCOME>                                               (742)
<EPS-PRIMARY>                                             (0.16)
<EPS-DILUTED>                                             (0.16)