<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