<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-Q 
FOR THE PERIOD ENDED MARCH 31, 1996, AND IS QUALIFIED IN ITS ENTIRETY BY 
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0001002531
<NAME> TOLLGRADE COMMUNICATIONS, INC.
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               MAR-31-1996
<CASH>                                      14,984,777
<SECURITIES>                                         0
<RECEIVABLES>                                3,478,676
<ALLOWANCES>                                         0
<INVENTORY>                                  6,247,244
<CURRENT-ASSETS>                            25,232,984
<PP&E>                                       2,785,429
<DEPRECIATION>                                 910,476
<TOTAL-ASSETS>                              27,306,981
<CURRENT-LIABILITIES>                        3,613,756
<BONDS>                                              0
<COMMON>                                     1,088,766
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<OTHER-SE>                                  22,447,359
<TOTAL-LIABILITY-AND-EQUITY>                27,306,981
<SALES>                                      6,848,807
<TOTAL-REVENUES>                             6,849,387
<CGS>                                        3,463,363
<TOTAL-COSTS>                                3,463,363
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                              1,505,301
<INCOME-TAX>                                   548,000
<INCOME-CONTINUING>                            957,301
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   957,301
<EPS-PRIMARY>                                     0.16
<EPS-DILUTED>                                     0.16