<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