<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)