<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