<ARTICLE> 5 <CIK> 0000895419 <NAME> CREE RESEARCH, INC. CREE RESEARCH, INC. <MULTIPLIER> 1000 <CURRENCY> U.S. DOLLARS <PERIOD-TYPE> 3-MOS 12-MOS <FISCAL-YEAR-END> JUN-28-1998 JUN-28-1998 <PERIOD-START> MAR-30-1998 JUL-1-1997 <PERIOD-END> JUN-28-1998 JUN-28-1998 <EXCHANGE-RATE> 1 1 <CASH> 17,680 17,680 <SECURITIES> 657 657 <RECEIVABLES> 10,479 10,479 <ALLOWANCES> 151 151 <INVENTORY> 2,543 2,543 <CURRENT-ASSETS> 34,658 34,658 <PP&E> 46,780 46,780 <DEPRECIATION> 10,304 10,304 <TOTAL-ASSETS> 72,724 72,724 <CURRENT-LIABILITIES> 7,055 7,055 <BONDS> 0 0 <COMMON> 49,741 49,741 <PREFERRED-MANDATORY> 0 0 <PREFERRED> 0 0 <OTHER-SE> 5,124 5,124 <TOTAL-LIABILITY-AND-EQUITY> 54,865 54,865 <SALES> 11,548 42,531 <TOTAL-REVENUES> 11,548 42,531 <CGS> 7,425 27,979 <TOTAL-COSTS> 13,219 34,386 <OTHER-EXPENSES> 0 0 <LOSS-PROVISION> 0 0 <INTEREST-EXPENSE> (217) (730) <INCOME-PRETAX> 2,669 8,875 <INCOME-TAX> 790 2,600 <INCOME-CONTINUING> 1,879 6,275 <DISCONTINUED> 0 0 <EXTRAORDINARY> 0 0 <CHANGES> 0 0 <NET-INCOME> 1,879 6,275 <EPS-PRIMARY> 0.14<F1> 0.49<F1> <EPS-DILUTED> 0.14 0.47 <FN> <F1> EPS-BASIC </FN>