<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-Q
FOR THE PERIOD ENDED JUNE 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH FINANICAL STATEMENTS.
</LEGEND>
<CIK> 0001002531
<NAME> TOLLGRADE COMMUNICATION, INC.
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               JUN-30-1996
<CASH>                                       8,668,691
<SECURITIES>                                 6,942,506
<RECEIVABLES>                                3,625,980
<ALLOWANCES>                                  (50,000)
<INVENTORY>                                  7,134,461
<CURRENT-ASSETS>                            27,005,980
<PP&E>                                       3,238,614
<DEPRECIATION>                               1,040,367
<TOTAL-ASSETS>                              29,323,208
<CURRENT-LIABILITIES>                        4,011,059
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                     1,089,742
<OTHER-SE>                                  24,082,407
<TOTAL-LIABILITY-AND-EQUITY>                29,323,208
<SALES>                                     17,031,092
<TOTAL-REVENUES>                            17,031,672
<CGS>                                        8,435,098
<TOTAL-COSTS>                                8,435,098
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                              4,167,666
<INCOME-TAX>                                 1,598,000
<INCOME-CONTINUING>                                  0
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                 2,569,666
<EPS-PRIMARY>                                     0.44
<EPS-DILUTED>                                     0.43