<ARTICLE>                     5
<LEGEND>
THIS  SCHEDULE  CONTAINS  SUMMARY  FINANCIAL   INFORMATION  EXTRACTED  FROM  THE
REGISTRANT'S  UNAUDITED  BALANCE  SHEET AS OF AUGUST 31, 1998 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
<CURRENCY>                            USD
       
                                   
<PERIOD-TYPE>                       6-MOS
<FISCAL-YEAR-END>             FEB-28-1999
<PERIOD-START>                MAR-01-1998
<PERIOD-END>                  AUG-31-1998
<EXCHANGE-RATE>                         1
<CASH>                          6,568,021
<SECURITIES>                            0
<RECEIVABLES>                     438,950
<ALLOWANCES>                     (174,215)
<INVENTORY>                     1,687,588
<CURRENT-ASSETS>                8,662,211
<PP&E>                          1,141,709
<DEPRECIATION>                 (1,032,825)
<TOTAL-ASSETS>                  8,816,357
<CURRENT-LIABILITIES>             722,053
<BONDS>                                 0
<PREFERRED-MANDATORY>             749,290
<PREFERRED>                             0
<COMMON>                           75,957
<OTHER-SE>                      7,269,057
<TOTAL-LIABILITY-AND-EQUITY>    8,816,357
<SALES>                           879,915
<TOTAL-REVENUES>                  905,427
<CGS>                           1,139,621
<TOTAL-COSTS>                   1,149,064
<OTHER-EXPENSES>                        0
<LOSS-PROVISION>                 (103,991)
<INTEREST-EXPENSE>                      0
<INCOME-PRETAX>                (1,939,044)
<INCOME-TAX>                            0
<INCOME-CONTINUING>            (1,939,044)
<DISCONTINUED>                          0
<EXTRAORDINARY>                         0
<CHANGES>                               0
<NET-INCOME>                   (1,939,044)
<EPS-PRIMARY>                       (0.31)
<EPS-DILUTED>                       (0.31)