<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM VTEL
CORPORATION'S BALANCE SHEET & INCOME STATEMENT FOR THE THREE MONTHS ENDED
10\31\96, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH 10/31/96 10-Q
FILING.
</LEGEND>
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          JUL-31-1997
<PERIOD-START>                             AUG-01-1996
<PERIOD-END>                               OCT-31-1996
<CASH>                                       1,502,000
<SECURITIES>                                40,666,000
<RECEIVABLES>                               23,779,000
<ALLOWANCES>                                  (240,000)
<INVENTORY>                                 13,723,000
<CURRENT-ASSETS>                            80,671,000
<PP&E>                                      24,362,000
<DEPRECIATION>                             (10,296,000)
<TOTAL-ASSETS>                             109,967,000
<CURRENT-LIABILITIES>                       18,133,000
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                   121,265,000
<OTHER-SE>                                 (29,431,000)
<TOTAL-LIABILITY-AND-EQUITY>               109,967,000
<SALES>                                     28,199,000
<TOTAL-REVENUES>                            28,199,000
<CGS>                                      (15,868,000)
<TOTAL-COSTS>                              (12,025,000)
<OTHER-EXPENSES>                               667,000
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                973,000
<INCOME-TAX>                                   (19,000)
<INCOME-CONTINUING>                            973,000
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   954,000
<EPS-PRIMARY>                                      .07
<EPS-DILUTED>                                      .07