<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM DATA RACE,
INC FINANCIAL STATEMENTS AS OF AND FOR THE NINE MONTHS ENDED MARCH 31, 1997, AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          JUN-30-1997
<PERIOD-START>                             JUL-01-1996
<PERIOD-END>                               MAR-31-1997
<CASH>                                           6,377
<SECURITIES>                                         0
<RECEIVABLES>                                    2,063
<ALLOWANCES>                                         0
<INVENTORY>                                      1,780
<CURRENT-ASSETS>                                 7,495
<PP&E>                                           4,083
<DEPRECIATION>                                   2,043
<TOTAL-ASSETS>                                  12,339
<CURRENT-LIABILITIES>                            3,795
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                      4,220
<COMMON>                                        24,905
<OTHER-SE>                                     (20,580)
<TOTAL-LIABILITY-AND-EQUITY>                     8,544
<SALES>                                         16,271
<TOTAL-REVENUES>                                16,271
<CGS>                                           12,402
<TOTAL-COSTS>                                    8,593
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                 (4,584)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                             (4,584)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    (4,584)
<EPS-PRIMARY>                                    (1.25)
<EPS-DILUTED>                                    (1.25)