<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FY98 ANDATACO, INC. AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> OCT-31-1998 <PERIOD-START> NOV-01-1997 <PERIOD-END> OCT-31-1998 <CASH> 23,000 <SECURITIES> 0 <RECEIVABLES> 10,628,000 <ALLOWANCES> 0 <INVENTORY> 4,923,000 <CURRENT-ASSETS> 16,208,000 <PP&E> 3,415,000 <DEPRECIATION> 0 <TOTAL-ASSETS> 25,682,000 <CURRENT-LIABILITIES> 12,722,060 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 238,000 <OTHER-SE> 0 <TOTAL-LIABILITY-AND-EQUITY> 2,302,000 <SALES> 77,519,000 <TOTAL-REVENUES> 77,519,000 <CGS> 54,293,000 <TOTAL-COSTS> 24,639,000 <OTHER-EXPENSES> 0 <LOSS-PROVISION> (1,413,000) <INTEREST-EXPENSE> 1,021,000 <INCOME-PRETAX> (2,434,000) <INCOME-TAX> 0 <INCOME-CONTINUING> (2,434,000) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (2,434,000) <EPS-PRIMARY> (0.10) <EPS-DILUTED> (0.10)