<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 nine month period ending October 2, 1998
included in the Company's  Form 10-Q/A filed  November 19, 1998 and is qualified
in its entirety by reference to such statements.



 
</LEGEND>
<MULTIPLIER>                                               1,000
       
                                                          
<PERIOD-TYPE>                                              9-MOS
<FISCAL-YEAR-END>                                    DEC-31-1998
<PERIOD-END>                                         OCT-02-1998
<CASH>                                                     4,854
<SECURITIES>                                                   0
<RECEIVABLES>                                              5,491
<ALLOWANCES>                                                 484
<INVENTORY>                                                2,860
<CURRENT-ASSETS>                                          14,350
<PP&E>                                                     4,629
<DEPRECIATION>                                           (3,881)
<TOTAL-ASSETS>                                            18,412
<CURRENT-LIABILITIES>                                      4,410
<BONDS>                                                        0
<PREFERRED-MANDATORY>                                          0
<PREFERRED>                                                    0
<COMMON>                                                  29,107
<OTHER-SE>                                              (15,235)
<TOTAL-LIABILITY-AND-EQUITY>                              18,412
<SALES>                                                        0
<TOTAL-REVENUES>                                          18,147
<CGS>                                                      8,334
<TOTAL-COSTS>                                              8,334
<OTHER-EXPENSES>                                          11,161
<LOSS-PROVISION>                                               0
<INTEREST-EXPENSE>                                         (177)
<INCOME-PRETAX>                                          (1,172)
<INCOME-TAX>                                                (37)
<INCOME-CONTINUING>                                      (1,135)
<DISCONTINUED>                                                 0
<EXTRAORDINARY>                                                0
<CHANGES>                                                      0
<NET-INCOME>                                             (1,135)
<EPS-PRIMARY>                                             (0.25)
<EPS-DILUTED>                                             (0.25)