<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE TWELVE 
MONTHS ENDED 12-31-96 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO THE
FINANCIAL STATEMENTS AND NOTES THERETO CONTAINED IN THE COMPANY'S ANNUAL REPORT
ON FORM 10-K.
</LEGEND>
<CIK> 0000818813
<NAME> BITSTREAM INC.
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
       
                             
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               DEC-31-1996
<EXCHANGE-RATE>                                      1
<CASH>                                      11,718,000
<SECURITIES>                                         0
<RECEIVABLES>                                3,496,000
<ALLOWANCES>                                   277,000
<INVENTORY>                                          0
<CURRENT-ASSETS>                            16,239,000
<PP&E>                                       3,456,000
<DEPRECIATION>                               2,532,000
<TOTAL-ASSETS>                              17,477,000
<CURRENT-LIABILITIES>                        2,019,000
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        59,000
<OTHER-SE>                                  15,300,000
<TOTAL-LIABILITY-AND-EQUITY>                17,477,000
<SALES>                                     10,551,000
<TOTAL-REVENUES>                            10,551,000
<CGS>                                        1,858,000
<TOTAL-COSTS>                                1,858,000
<OTHER-EXPENSES>                             7,431,000
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                              19,000
<INCOME-PRETAX>                              1,243,000
<INCOME-TAX>                                  (94,000)
<INCOME-CONTINUING>                          1,337,000
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                 1,337,000
<EPS-PRIMARY>                                      .27
<EPS-DILUTED>                                       .0