<ARTICLE>                           5
<LEGEND>
         THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
         REGISTRANT'S  UNAUDITED  BALANCE  SHEET  AS OF MAY  31,  1997  AND  THE
         UNAUDITED STATEMENTS OF OPERATIONS AND STATEMENTS OF CASH FLOWS FOR THE
         THREE  MONTHS THEN ENDED AND IS  QUALIFIED IN ITS ENTIRETY BY REFERENCE
         TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK>                               0000835585
<NAME>                              C-Phone Corporation
<MULTIPLIER>                                          1
       
                                        
<PERIOD-TYPE>                                    3-MOS
<FISCAL-YEAR-END>                          FEB-28-1998
<PERIOD-START>                             MAR-01-1997
<PERIOD-END>                               MAY-31-1997
<CASH>                                       4,187,900
<SECURITIES>                                         0
<RECEIVABLES>                                  616,195
<ALLOWANCES>                                   150,000
<INVENTORY>                                  1,137,584
<CURRENT-ASSETS>                             5,907,142
<PP&E>                                       1,119,143
<DEPRECIATION>                                 861,373
<TOTAL-ASSETS>                               6,230,483
<CURRENT-LIABILITIES>                          942,538
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        52,034
<OTHER-SE>                                   5,235,911
<TOTAL-LIABILITY-AND-EQUITY>                 5,287,945
<SALES>                                        436,800
<TOTAL-REVENUES>                               436,800
<CGS>                                          901,016
<TOTAL-COSTS>                                  901,016
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                30,000
<INTEREST-EXPENSE>                                 312
<INCOME-PRETAX>                            (1,865,068)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                        (1,865,068)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                               (1,865,068)
<EPS-PRIMARY>                                   (0.38)
<EPS-DILUTED>                                   (0.38)