<ARTICLE> 5 <LEGEND> 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 October 1, 1999 included in the Company's Form 10-Q filed November 12, 1999 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> OCT-01-1999 <CASH> 4,453 <SECURITIES> 0 <RECEIVABLES> 2,082 <ALLOWANCES> (271) <INVENTORY> 1,545 <CURRENT-ASSETS> 8,013 <PP&E> 1,633 <DEPRECIATION> (1,170) <TOTAL-ASSETS> 8,565 <CURRENT-LIABILITIES> 4,655 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 28,993 <OTHER-SE> (25,109) <TOTAL-LIABILITY-AND-EQUITY> 8,565 <SALES> 4,017 <TOTAL-REVENUES> 4,017 <CGS> 1,547 <TOTAL-COSTS> 1,547 <OTHER-EXPENSES> 3,337 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 4 <INCOME-PRETAX> (798) <INCOME-TAX> 0 <INCOME-CONTINUING> (798) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (798) <EPS-BASIC> (0.17) <EPS-DILUTED> (0.17)