<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,
1999, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000

                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          JUN-30-2000
<PERIOD-START>                             JUL-01-1999
<PERIOD-END>                               SEP-30-1999
<CASH>                                           6,329
<SECURITIES>                                         0
<RECEIVABLES>                                      152
<ALLOWANCES>                                         0
<INVENTORY>                                        167
<CURRENT-ASSETS>                                 6,648
<PP&E>                                           4,117
<DEPRECIATION>                                  (2,933)
<TOTAL-ASSETS>                                   7,858
<CURRENT-LIABILITIES>                              881
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                      1,540
<COMMON>                                        47,130
<OTHER-SE>                                     (41,693)
<TOTAL-LIABILITY-AND-EQUITY>                     7,858
<SALES>                                            536
<TOTAL-REVENUES>                                   536
<CGS>                                              345
<TOTAL-COSTS>                                    3,016
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                 (2,379)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                             (2,379)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    (2,379)
<EPS-BASIC>                                      (0.12)
<EPS-DILUTED>                                    (0.12)