<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)