<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