<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-Q FOR THE PERIOD ENDED MARCH 29, 1997 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-31-1997 <PERIOD-START> JAN-01-1997 <PERIOD-END> MAR-29-1997 <CASH> 6,495,380 <SECURITIES> 11,399,362 <RECEIVABLES> 4,616,655 <ALLOWANCES> 0 <INVENTORY> 8,147,794 <CURRENT-ASSETS> 31,189,020 <PP&E> 4,568,387 <DEPRECIATION> (1,703,717) <TOTAL-ASSETS> 34,225,232 <CURRENT-LIABILITIES> 2,741,061 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 1,131,859 <OTHER-SE> 30,183,857 <TOTAL-LIABILITY-AND-EQUITY> 34,225,232 <SALES> 8,619,406 <TOTAL-REVENUES> 8,619,406 <CGS> 3,789,366 <TOTAL-COSTS> 3,789,366 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 1,889,298 <INCOME-TAX> 710,005 <INCOME-CONTINUING> 0 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 1,179,293 <EPS-PRIMARY> 0.20 <EPS-DILUTED> 0.20