<ARTICLE>                     5
<LEGEND>
THIS  SCHEDULE  CONTAINS  SUMMARY  FINANCIAL   INFORMATION  EXTRACTED  FROM  THE
INTER-TEL, INCORPORATED AND SUBSIDIARIES FINANCIAL STATEMENTS FOR THE YEAR ENDED
DECEMBER  31,  1998  AND IS  QUALIFIED  IN ITS  ENTIRETY  BY  REFERENCE  TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER>                  1,000
<CURRENCY>                    U.S. DOLLARS
       
                           
<PERIOD-TYPE>                 12-MOS
<FISCAL-YEAR-END>                              DEC-31-1998
<PERIOD-START>                                 JAN-01-1998
<PERIOD-END>                                   DEC-31-1998
<EXCHANGE-RATE>                                          1
<CASH>                                              63,124
<SECURITIES>                                             0
<RECEIVABLES>                                       45,720
<ALLOWANCES>                                         4,604
<INVENTORY>                                         19,663
<CURRENT-ASSETS>                                   140,663
<PP&E>                                              53,254
<DEPRECIATION>                                      28,969
<TOTAL-ASSETS>                                     197,030
<CURRENT-LIABILITIES>                               43,346
<BONDS>                                                  0
<PREFERRED-MANDATORY>                                    0
<PREFERRED>                                              0
<COMMON>                                           104,539
<OTHER-SE>                                          38,147
<TOTAL-LIABILITY-AND-EQUITY>                       197,030
<SALES>                                            274,504
<TOTAL-REVENUES>                                   274,504
<CGS>                                              140,946
<TOTAL-COSTS>                                      140,946
<OTHER-EXPENSES>                                         0
<LOSS-PROVISION>                                     5,851
<INTEREST-EXPENSE>                                      60
<INCOME-PRETAX>                                     15,834
<INCOME-TAX>                                         6,790
<INCOME-CONTINUING>                                  9,044
<DISCONTINUED>                                           0
<EXTRAORDINARY>                                          0
<CHANGES>                                                0
<NET-INCOME>                                         9,044
<EPS-PRIMARY>                                         0.34
<EPS-DILUTED>                                         0.32