<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS OF PERITUS SOFTWARE SERVICES, INC. FOR THE
NINE MONTHS ENDED SEPTEMBER 30, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   9-MOS<F1>
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               SEP-30-1997
<CASH>                                          46,292
<SECURITIES>                                         0
<RECEIVABLES>                                    6,014
<ALLOWANCES>                                        45
<INVENTORY>                                          0
<CURRENT-ASSETS>                                54,450
<PP&E>                                           4,604
<DEPRECIATION>                                   2,118
<TOTAL-ASSETS>                                  57,606
<CURRENT-LIABILITIES>                            5,784
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           132
<OTHER-SE>                                      50,938
<TOTAL-LIABILITY-AND-EQUITY>                    57,606
<SALES>                                         25,493
<TOTAL-REVENUES>                                25,493
<CGS>                                           10,882
<TOTAL-COSTS>                                        0
<OTHER-EXPENSES>                                14,046
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                               (482)
<INCOME-PRETAX>                                  1,047
<INCOME-TAX>                                       104
<INCOME-CONTINUING>                                943
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                         (15)
<NET-INCOME>                                       928
<EPS-PRIMARY>                                      .02
<EPS-DILUTED>                                      .02
<FN>
<F1> RESTATED - SEE NOTE 5 TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS.
</FN>