<ARTICLE>                     5
<LEGEND>
         THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
         REGISTRANT'S  UNAUDITED  BALANCE  SHEET AS OF AUGUST  31,  1997 AND THE
         UNAUDITED STATEMENTS OF OPERATIONS AND STATEMENTS OF CASH FLOWS FOR THE
         SIX 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>                                6-MOS
<FISCAL-YEAR-END>                       FEB-28-1998
<PERIOD-START>                          MAR-01-1997
<PERIOD-END>                            AUG-31-1997
<CASH>                                   2,441,829
<SECURITIES>                                     0
<RECEIVABLES>                              549,638
<ALLOWANCES>                               150,000
<INVENTORY>                              1,279,202
<CURRENT-ASSETS>                         4,237,661
<PP&E>                                   1,123,904
<DEPRECIATION>                             888,303
<TOTAL-ASSETS>                           4,534,354
<CURRENT-LIABILITIES>                      533,709
<BONDS>                                          0
<PREFERRED-MANDATORY>                            0
<PREFERRED>                                      0
<COMMON>                                    52,034
<OTHER-SE>                               3,948,611
<TOTAL-LIABILITY-AND-EQUITY>             4,534,354
<SALES>                                    752,910
<TOTAL-REVENUES>                           760,949
<CGS>                                    1,319,422
<TOTAL-COSTS>                            1,320,434
<OTHER-EXPENSES>                                 0
<LOSS-PROVISION>                            30,000
<INTEREST-EXPENSE>                             447
<INCOME-PRETAX>                         (3,161,968)
<INCOME-TAX>                                     0
<INCOME-CONTINUING>                     (3,161,968)
<DISCONTINUED>                                   0
<EXTRAORDINARY>                                  0
<CHANGES>                                        0
<NET-INCOME>                            (3,161,968)
<EPS-PRIMARY>                                (0.62)
<EPS-DILUTED>                                (0.62)