<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-K
FOR THE YEAR ENDED DECEMBER 31, 1997.
</LEGEND>
<CIK> 0001002531
<NAME> TOLLGRADE COMMUNICATIONS, INC.
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-START>                             JAN-01-1997
<PERIOD-END>                               DEC-31-1997
<CASH>                                       3,183,944
<SECURITIES>                                15,666,626
<RECEIVABLES>                                8,451,773
<ALLOWANCES>                                    50,000
<INVENTORY>                                 12,101,114
<CURRENT-ASSETS>                            39,975,925
<PP&E>                                       5,473,704
<DEPRECIATION>                               2,471,880
<TOTAL-ASSETS>                              43,713,212
<CURRENT-LIABILITIES>                        5,405,713
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                     1,145,470
<OTHER-SE>                                  36,955,913
<TOTAL-LIABILITY-AND-EQUITY>                43,713,212
<SALES>                                     44,546,135
<TOTAL-REVENUES>                            45,421,135
<CGS>                                       20,104,202
<TOTAL-COSTS>                               20,104,202
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                50,000
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                             11,056,797
<INCOME-TAX>                                 4,173,649
<INCOME-CONTINUING>                                  0
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                 6,883,148
<EPS-PRIMARY>                                     1.21
<EPS-DILUTED>                                     1.15