<ARTICLE>                     5
<CIK>                         0000895419
<NAME>                        CREE RESEARCH, INC.
<MULTIPLIER>                                   1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                              JUN-27-1999
<PERIOD-START>                                 JUN-29-1998
<PERIOD-END>                                   SEP-27-1998
<CASH>                                         13,036
<SECURITIES>                                   824
<RECEIVABLES>                                  11,847
<ALLOWANCES>                                   151
<INVENTORY>                                    3,249
<CURRENT-ASSETS>                               31,510
<PP&E>                                         51,646
<DEPRECIATION>                                 10,978
<TOTAL-ASSETS>                                 73,810
<CURRENT-LIABILITIES>                          7,550
<BONDS>                                        0
<PREFERRED-MANDATORY>                          0
<PREFERRED>                                    0
<COMMON>                                       16,686
<OTHER-SE>                                     7,490
<TOTAL-LIABILITY-AND-EQUITY>                   54,176
<SALES>                                        12,279
<TOTAL-REVENUES>                               12,279
<CGS>                                          6,622
<TOTAL-COSTS>                                  8,915
<OTHER-EXPENSES>                               0
<LOSS-PROVISION>                               0
<INTEREST-EXPENSE>                             (115)
<INCOME-PRETAX>                                3,479
<INCOME-TAX>                                   1,113
<INCOME-CONTINUING>                            2,366
<DISCONTINUED>                                 0
<EXTRAORDINARY>                                0
<CHANGES>                                      0
<NET-INCOME>                                   2,366
<EPS-PRIMARY>                                  0.18
<EPS-DILUTED>                                  0.18