<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-Q
FOR THE PERIOD ENDED SEPTEMBER 27, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0001002531
<NAME> TOLLGRADE COMMUNICATIONS, INC.
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               SEP-27-1997
<CASH>                                       2,147,053
<SECURITIES>                                16,592,411
<RECEIVABLES>                                7,892,200
<ALLOWANCES>                                    48,270
<INVENTORY>                                  9,419,883
<CURRENT-ASSETS>                            36,468,382
<PP&E>                                       5,144,363
<DEPRECIATION>                               2,201,762
<TOTAL-ASSETS>                              39,578,935
<CURRENT-LIABILITIES>                        3,458,694
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                     1,145,133
<OTHER-SE>                                  34,806,653
<TOTAL-LIABILITY-AND-EQUITY>                39,578,935
<SALES>                                     31,572,040
<TOTAL-REVENUES>                            32,097,040
<CGS>                                       14,469,083
<TOTAL-COSTS>                               14,469,083
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                50,000
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                              7,722,951
<INCOME-TAX>                                 2,903,274
<INCOME-CONTINUING>                                  0
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                 4,819,677
<EPS-PRIMARY>                                     0.81
<EPS-DILUTED>                                     0.81