<ARTICLE> 5 <LEGEND> This Schedule contains summary financial information extracted from the Company's financial statements included in the Quarterly Report on Form 10-Q and is qualified in its entirety by reference to such financial statements. </LEGEND> <CIK> 0000932064 <NAME> SECURITY DYNAMICS TECHNOLOGIES INC. <MULTIPLIER> 1,000 <CURRENCY> U.S. DOLLARS <PERIOD-TYPE> 6-MOS <FISCAL-YEAR-END> DEC-31-1996 <PERIOD-START> JAN-01-1996 <PERIOD-END> JUN-30-1996 <EXCHANGE-RATE> 1 <CASH> 5,639 <SECURITIES> 83,466 <RECEIVABLES> 9,241 <ALLOWANCES> 257 <INVENTORY> 2,365 <CURRENT-ASSETS> 102,994 <PP&E> 5,633 <DEPRECIATION> 1,798 <TOTAL-ASSETS> 108,424 <CURRENT-LIABILITIES> 7,477 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 137 <OTHER-SE> 100,810 <TOTAL-LIABILITY-AND-EQUITY> 108,424 <SALES> 26,240 <TOTAL-REVENUES> 26,240 <CGS> 6,172 <TOTAL-COSTS> 20,045 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 72 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 8,560 <INCOME-TAX> 3,124 <INCOME-CONTINUING> 5,436 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 5,436 <EPS-PRIMARY> .38 <EPS-DILUTED> .38