<ARTICLE> 5
<LEGEND>
THIS  SCHEDULE  CONTAINS  SUMMARY  FINANCIAL   INFORMATION  EXTRACTED  FROM  THE
INTER-TEL, INCORPORATED AND SUBSIDIARIES FINANCIAL STATEMENTS FOR THE SIX MONTHS
ENDED JUNE 30,  1998 AND IS  QUALIFIED  IN ITS  ENTIRETY  BY  REFERENCE  TO SUCH
FINANCIAL STATEMENTS
</LEGEND>
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-START>                             JAN-01-1998
<PERIOD-END>                               JUN-30-1998
<EXCHANGE-RATE>                                      1
<CASH>                                           66691
<SECURITIES>                                         0
<RECEIVABLES>                                    41723
<ALLOWANCES>                                      4096
<INVENTORY>                                      18493
<CURRENT-ASSETS>                                142263
<PP&E>                                           48163
<DEPRECIATION>                                   22714
<TOTAL-ASSETS>                                  189952
<CURRENT-LIABILITIES>                            39713
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        100856
<OTHER-SE>                                       41056
<TOTAL-LIABILITY-AND-EQUITY>                    189952
<SALES>                                         136374
<TOTAL-REVENUES>                                136374
<CGS>                                            71115
<TOTAL-COSTS>                                    71115
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                 114
<INCOME-PRETAX>                                 (7239)
<INCOME-TAX>                                    (2638)
<INCOME-CONTINUING>                             (4601)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    (4601)
<EPS-PRIMARY>                                   (0.17)
<EPS-DILUTED>                                   (0.17)