<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE 10-QSB
FOR THE PERIOD ENDED MARCH 31, 1998 FOR DIGITAL POWER CORPORATION AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               MAR-31-1998
<CASH>                                         287,067
<SECURITIES>                                         0
<RECEIVABLES>                                4,836,928
<ALLOWANCES>                                 (235,000)
<INVENTORY>                                  6,648,842
<CURRENT-ASSETS>                            12,601,767
<PP&E>                                       2,385,511
<DEPRECIATION>                             (1,023,060)
<TOTAL-ASSETS>                              15,088,197
<CURRENT-LIABILITIES>                        6,698,615
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                     8,888,173
<OTHER-SE>                                   (735,314)
<TOTAL-LIABILITY-AND-EQUITY>                15,088,197
<SALES>                                      5,055,331
<TOTAL-REVENUES>                             5,055,331
<CGS>                                        3,535,354
<TOTAL-COSTS>                                3,535,354
<OTHER-EXPENSES>                               920,427
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                            (47,234)
<INCOME-PRETAX>                                550,675
<INCOME-TAX>                                   256,242
<INCOME-CONTINUING>                            294,433
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   294,433
<EPS-PRIMARY>                                      .11
<EPS-DILUTED>                                      .09