WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE. <ARTICLE> 5 Financial Data Schedule for 2nd Quarter 10-Q <CIK> 0000764841 <NAME> COMPUTER TELEPHONE CORP. <MULTIPLIER> 1,000 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> Mar-31-1996 <PERIOD-END> Sep-30-1995 <CASH> 3,321 <SECURITIES> 0 <RECEIVABLES> 5,168 <ALLOWANCES> 128 <INVENTORY> 26 <CURRENT-ASSETS> 8,933 <PP&E> 5,603 <DEPRECIATION> 4,448 <TOTAL-ASSETS> 10,267 <CURRENT-LIABILITIES> 3,048 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <OTHER-SE> 7,171 <TOTAL-LIABILITY-AND-EQUITY> 10,267 <SALES> 8,070 <TOTAL-REVENUES> 8,114 <CGS> 994 <TOTAL-COSTS> 6,521 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 1,594 <INCOME-TAX> 645 <INCOME-CONTINUING> 949 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 949 <EPS-PRIMARY> 0.18 <EPS-DILUTED> 0.18