<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