<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-Q
FOR THE PERIOD ENDED MARCH 28, 1998 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-31-1998
<PERIOD-START>                             JAN-01-1998
<PERIOD-END>                               MAR-28-1998
<CASH>                                       4,854,547
<SECURITIES>                                15,760,065
<RECEIVABLES>                                7,285,277
<ALLOWANCES>                                    50,000
<INVENTORY>                                 13,076,328
<CURRENT-ASSETS>                            40,191,957
<PP&E>                                       6,153,681
<DEPRECIATION>                               2,766,081
<TOTAL-ASSETS>                              45,833,940
<CURRENT-LIABILITIES>                        4,816,483
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                     1,170,791
<OTHER-SE>                                  39,348,550
<TOTAL-LIABILITY-AND-EQUITY>                45,833,940
<SALES>                                     10,763,840
<TOTAL-REVENUES>                            10,763,840
<CGS>                                        4,355,312
<TOTAL-COSTS>                                4,355,312
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                              2,257,560
<INCOME-TAX>                                   813,000
<INCOME-CONTINUING>                                  0
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                 1,444,560
<EPS-PRIMARY>                                      .25
<EPS-DILUTED>                                      .24