<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS OF PERITUS SOFTWARE SERVICES, INC. FOR THE
THREE MONTHS ENDED MARCH 31, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000

                             
<PERIOD-TYPE>                   3-MOS<F1>
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-START>                             JAN-01-1998
<PERIOD-END>                               MAR-31-1998
<CASH>                                           9,821
<SECURITIES>                                     2,500
<RECEIVABLES>                                    9,353
<ALLOWANCES>                                       445
<INVENTORY>                                          0
<CURRENT-ASSETS>                                25,302
<PP&E>                                           8,414
<DEPRECIATION>                                   3,016
<TOTAL-ASSETS>                                  36,225
<CURRENT-LIABILITIES>                            7,962
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           161
<OTHER-SE>                                      27,417
<TOTAL-LIABILITY-AND-EQUITY>                    36,225
<SALES>                                          4,085
<TOTAL-REVENUES>                                 9,433
<CGS>                                              536
<TOTAL-COSTS>                                    5,100
<OTHER-EXPENSES>                                 7,900
<LOSS-PROVISION>                                   445
<INTEREST-EXPENSE>                               (160)
<INCOME-PRETAX>                                (3,407)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                            (3,407)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                           49
<NET-INCOME>                                   (3,358)
<EPS-BASIC>                                     (.21)
<EPS-DILUTED>                                     (.21)
<FN>
<F1>RESTATED - SEE NOTE 6 TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS.
</FN>