<ARTICLE> 5
<LEGEND>
INTER-TEL,  INCORPORATED AND SUBSIDIARIES  FINANCIAL DATA SCHEDULE (EXHIBIT 27).
THIS  SCHEDULE  CONTAINS  SUMMARY  FINANCIAL   INFORMATION  EXTRACTED  FROM  THE
INTER-TEL,  INCORPORATED  AND  SUBSIDIARIES  FINANCIAL  STATEMENTS  FOR THE NINE
MONTHS  ENDED  SEPTEMBER,  1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS
</LEGEND>
<CURRENCY> U.S. DOLLARS
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-START>                             JAN-01-1998
<PERIOD-END>                               SEP-30-1998
<EXCHANGE-RATE>                                      1
<CASH>                                          54,842
<SECURITIES>                                         0
<RECEIVABLES>                                   41,510
<ALLOWANCES>                                     4,351
<INVENTORY>                                     21,149
<CURRENT-ASSETS>                               132,451
<PP&E>                                          51,235
<DEPRECIATION>                                  24,032
<TOTAL-ASSETS>                                 184,775
<CURRENT-LIABILITIES>                           35,886
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                       102,560
<OTHER-SE>                                      33,464
<TOTAL-LIABILITY-AND-EQUITY>                   136,024
<SALES>                                        202,235
<TOTAL-REVENUES>                               202,235
<CGS>                                          103,613
<TOTAL-COSTS>                                  103,613
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                  58
<INCOME-PRETAX>                                  3,345
<INCOME-TAX>                                     1,744
<INCOME-CONTINUING>                              1,601
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                     1,601
<EPS-PRIMARY>                                     0.06
<EPS-DILUTED>                                     0.06