<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FIANNCIAL INFORMATION EXTRACTED FROM DATA RACE,
INC FINANCIAL STATEMENTS AS OF AND FOR THE THREE MONTHS ENDED SEPTEMBER 30,
1997, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               SEP-30-1997
<CASH>                                           2,510
<SECURITIES>                                         0
<RECEIVABLES>                                      903
<ALLOWANCES>                                         0
<INVENTORY>                                      1,038
<CURRENT-ASSETS>                                 4,474
<PP&E>                                               0
<DEPRECIATION>                                       0
<TOTAL-ASSETS>                                   6,319
<CURRENT-LIABILITIES>                            2,094
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                        748
<COMMON>                                        29,242
<OTHER-SE>                                     (25,764)
<TOTAL-LIABILITY-AND-EQUITY>                     6,319
<SALES>                                          1,154
<TOTAL-REVENUES>                                 1,154
<CGS>                                            1,005
<TOTAL-COSTS>                                    3,925
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                 (2,724)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                             (2,724)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    (2,724)
<EPS-PRIMARY>                                    (0.54)
<EPS-DILUTED>                                    (.054)