<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-Q
FOR THE PERIOD ENDED JUNE 27, 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>                             MAR-29-1998
<PERIOD-END>                               JUN-27-1998
<CASH>                                       5,621,098
<SECURITIES>                                14,028,996
<RECEIVABLES>                               12,905,266
<ALLOWANCES>                                   150,000
<INVENTORY>                                 12,300,490
<CURRENT-ASSETS>                            39,493,034
<PP&E>                                       6,473,907
<DEPRECIATION>                               3,068,702
<TOTAL-ASSETS>                              48,874,542
<CURRENT-LIABILITIES>                        4,851,319
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                     1,176,272
<OTHER-SE>                                  42,500,835
<TOTAL-LIABILITY-AND-EQUITY>                48,874,542
<SALES>                                     14,025,024
<TOTAL-REVENUES>                            14,025,024
<CGS>                                        5,919,637
<TOTAL-COSTS>                                5,919,637
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                               100,000
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                              4,218,135
<INCOME-TAX>                                 1,575,000
<INCOME-CONTINUING>                                  0
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                 2,643,135
<EPS-PRIMARY>                                      .45
<EPS-DILUTED>                                      .44