<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCAL INFORMATION EXTRACTED FROM DATA RACE,
INC. FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 1998, AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          JUN-30-1998
<PERIOD-START>                             JUL-01-1997
<PERIOD-END>                               JUN-30-1998
<CASH>                                           1,644
<SECURITIES>                                         0
<RECEIVABLES>                                      475
<ALLOWANCES>                                      (154)
<INVENTORY>                                        543
<CURRENT-ASSETS>                                 2,508
<PP&E>                                           4,096
<DEPRECIATION>                                  (2,621)
<TOTAL-ASSETS>                                   4,009
<CURRENT-LIABILITIES>                            1,452
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                      1,605
<COMMON>                                        33,335
<OTHER-SE>                                     (32,383)
<TOTAL-LIABILITY-AND-EQUITY>                     4,009
<SALES>                                          4,507
<TOTAL-REVENUES>                                 4,507
<CGS>                                            3,677
<TOTAL-COSTS>                                    9,995
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                 (9,029)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                             (9,029)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    (9,029)
<EPS-PRIMARY>                                    (1.60)
<EPS-DILUTED>                                    (1.60)