<ARTICLE> 5
<LEGEND>
THIS  SCHEDULE  CONTAINS  SUMMARY  FINANCIAL   INFORMATION  EXTRACTED  FROM  THE
INTER-TEL,  INCORPORATED  AND  SUBSIDIARIES  FINANCIAL  STATEMENTS FOR THE THREE
MONTHS ENDED MARCH 30, 1998  RESTATED FOR A POOLING WITH "ITS" DURING THE SECOND
QUARTER  ENDED JUNE 30, 1998 AND IS  QUALIFIED  IN ITS  ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS
</LEGEND>
<RESTATED> 
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-START>                             JAN-01-1998
<PERIOD-END>                               MAR-31-1998
<EXCHANGE-RATE>                                      1
<CASH>                                           91157
<SECURITIES>                                         0
<RECEIVABLES>                                    38224
<ALLOWANCES>                                      3936
<INVENTORY>                                      21632
<CURRENT-ASSETS>                                163312
<PP&E>                                           42886
<DEPRECIATION>                                   21363
<TOTAL-ASSETS>                                  204685
<CURRENT-LIABILITIES>                            36783
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                         99858
<OTHER-SE>                                       51192
<TOTAL-LIABILITY-AND-EQUITY>                    204685
<SALES>                                          65865
<TOTAL-REVENUES>                                 65865
<CGS>                                            33994
<TOTAL-COSTS>                                    33994
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                  43
<INCOME-PRETAX>                                   9177
<INCOME-TAX>                                      3820
<INCOME-CONTINUING>                               5357
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                      5357
<EPS-PRIMARY>                                     0.20
<EPS-DILUTED>                                     0.20