<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM DATA RACE,
INC. FINANCIAL STATEMENTS AS OF AND FOR THE THREE MONTHS ENDED SEPTEMBER 30,
1998, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          JUN-30-1999
<PERIOD-START>                             JUL-01-1998
<PERIOD-END>                               SEP-30-1998
<CASH>                                           2,298
<SECURITIES>                                         0
<RECEIVABLES>                                      343
<ALLOWANCES>                                         0
<INVENTORY>                                        501
<CURRENT-ASSETS>                                 3,142
<PP&E>                                           4,068
<DEPRECIATION>                                 (2,687)
<TOTAL-ASSETS>                                   4,548
<CURRENT-LIABILITIES>                            1,135
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                      1,606
<COMMON>                                        36,059
<OTHER-SE>                                    (34,252)
<TOTAL-LIABILITY-AND-EQUITY>                     4,548
<SALES>                                            911
<TOTAL-REVENUES>                                   911
<CGS>                                              599
<TOTAL-COSTS>                                    3,256
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                (2,318)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                            (2,318)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   (2,318)
<EPS-PRIMARY>                                   (0.26)
<EPS-DILUTED>                                   (0.26)