<ARTICLE> 5 <LEGEND> THIS FINANCIAL SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS CONTAINED IN THE FORM 10-Q OF VERILINK CORPORATION FOR THE SECOND FISCAL QUARTER ENDED DECEMBER 31, 1999 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <CIK> 0000774937 <NAME> VERILINK CORPORATION <MULTIPLIER> 1,000 <PERIOD-TYPE> 6-MOS <FISCAL-YEAR-END> JUN-30-2000 <PERIOD-START> JUN-28-1999 <PERIOD-END> DEC-31-1999 <CASH> 7,838 <SECURITIES> 3,579 <RECEIVABLES> 12,479 <ALLOWANCES> 204 <INVENTORY> 3,487 <CURRENT-ASSETS> 33,508 <PP&E> 15,567 <DEPRECIATION> 10,768 <TOTAL-ASSETS> 46,656 <CURRENT-LIABILITIES> 16,212 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 145 <OTHER-SE> 30,299 <TOTAL-LIABILITY-AND-EQUITY> 46,656 <SALES> 31,035 <TOTAL-REVENUES> 31,035 <CGS> 16,811 <TOTAL-COSTS> 16,811 <OTHER-EXPENSES> 24,731 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> (10,114) <INCOME-TAX> 0 <INCOME-CONTINUING> (10,114) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (10,114) <EPS-BASIC> (0.72) <EPS-DILUTED> (0.72)