<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-K
FOR THE PERIOD ENDED DECEMBER 31, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0001002531
<NAME> TOLLGRADE COMMUNICATIONS, INC.
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               DEC-31-1996
<CASH>                                       4,591,273
<SECURITIES>                                12,342,592
<RECEIVABLES>                                5,458,023
<ALLOWANCES>                                         0
<INVENTORY>                                  8,569,818
<CURRENT-ASSETS>                            31,683,235
<PP&E>                                       4,242,793
<DEPRECIATION>                               1,473,136
<TOTAL-ASSETS>                              34,625,630
<CURRENT-LIABILITIES>                        4,451,604
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                     1,124,083
<OTHER-SE>                                  28,881,488
<TOTAL-LIABILITY-AND-EQUITY>                34,625,630
<SALES>                                     37,489,949
<TOTAL-REVENUES>                            37,489,949
<CGS>                                       18,321,677
<TOTAL-COSTS>                               18,321,677
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                              8,773,376
<INCOME-TAX>                                 3,176,753
<INCOME-CONTINUING>                                  0
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                 5,596,623
<EPS-PRIMARY>                                      .94
<EPS-DILUTED>                                      .93