<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-Q
FOR THE PERIOD ENDED SEPTEMBER 26, 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>                               SEP-26-1998
<CASH>                                       5,150,565
<SECURITIES>                                16,192,797
<RECEIVABLES>                               10,418,928
<ALLOWANCES>                                   150,000
<INVENTORY>                                 12,973,812
<CURRENT-ASSETS>                            40,154,936
<PP&E>                                       6,757,160
<DEPRECIATION>                               3,331,027
<TOTAL-ASSETS>                              48,993,909
<CURRENT-LIABILITIES>                        3,602,464
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                     1,184,033
<OTHER-SE>                                  44,157,462
<TOTAL-LIABILITY-AND-EQUITY>                45,341,495
<SALES>                                     10,120,469
<TOTAL-REVENUES>                            10,120,469
<CGS>                                        4,511,004
<TOTAL-COSTS>                                4,511,004
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                              1,765,396
<INCOME-TAX>                                   654,803
<INCOME-CONTINUING>                                  0
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                 1,110,593
<EPS-PRIMARY>                                      .19
<EPS-DILUTED>                                      .18