<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM DATA RACE,
INC FINANCIAL STATEMENTS AS OF AND FOR THE SIX MONTHS ENDED DECEMBER 31, 1998,
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          JUN-30-1999
<PERIOD-START>                             JUL-01-1998
<PERIOD-END>                               DEC-31-1998
<CASH>                                           3,727
<SECURITIES>                                         0
<RECEIVABLES>                                      442
<ALLOWANCES>                                         0
<INVENTORY>                                        568
<CURRENT-ASSETS>                                 4,737
<PP&E>                                           4,059
<DEPRECIATION>                                   2,757
<TOTAL-ASSETS>                                   6,065
<CURRENT-LIABILITIES>                              908
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                      1,637
<COMMON>                                        40,609
<OTHER-SE>                                     (37,089)
<TOTAL-LIABILITY-AND-EQUITY>                     6,065
<SALES>                                          1,699
<TOTAL-REVENUES>                                 1,699
<CGS>                                            1,153
<TOTAL-COSTS>                                    6,307
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                 (4,552)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                             (4,552)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    (4,552)
<EPS-PRIMARY>                                    (0.47)
<EPS-DILUTED>                                    (0.47)