<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