<ARTICLE> 5
<LEGEND>
THIS SCHDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM DATA RACE,
INC. FINANCIAL STATEMENTS AS OF AND FOR THE YEAR ENDED JUNE 30, 1999, AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000

                             
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          JUN-30-1999
<PERIOD-START>                             JUL-01-1998
<PERIOD-END>                               JUN-30-1999
<CASH>                                           7,655
<SECURITIES>                                         0
<RECEIVABLES>                                      295
<ALLOWANCES>                                      (11)
<INVENTORY>                                        218
<CURRENT-ASSETS>                                 8,311
<PP&E>                                           4,052
<DEPRECIATION>                                 (2,868)
<TOTAL-ASSETS>                                   9,520
<CURRENT-LIABILITIES>                              804
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                      1,461
<COMMON>                                        46,490
<OTHER-SE>                                    (39,235)
<TOTAL-LIABILITY-AND-EQUITY>                     9,520
<SALES>                                          2,835
<TOTAL-REVENUES>                                 2,835
<CGS>                                            2,578
<TOTAL-COSTS>                                    8,937
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                (8,545)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                            (8,545)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   (8,545)
<EPS-BASIC>                                   (0.77)
<EPS-DILUTED>                                   (0.77)