<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED FINANCIAL STATEMENTS OF COMPUTER NETWORK TECHNOLOGY CORPORATION AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> MAR-31-1998 <CASH> 7,988 <SECURITIES> 0 <RECEIVABLES> 35,535 <ALLOWANCES> 1,170 <INVENTORY> 13,305 <CURRENT-ASSETS> 59,366 <PP&E> 37,695 <DEPRECIATION> 22,622 <TOTAL-ASSETS> 86,065 <CURRENT-LIABILITIES> 30,183 <BONDS> 638 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 221 <OTHER-SE> 55,023 <TOTAL-LIABILITY-AND-EQUITY> 86,065 <SALES> 22,337 <TOTAL-REVENUES> 31,166 <CGS> 6,854 <TOTAL-COSTS> 12,532 <OTHER-EXPENSES> 5,585<F1> <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 39 <INCOME-PRETAX> 591 <INCOME-TAX> 222 <INCOME-CONTINUING> 369 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 369 <EPS-PRIMARY> .02<F2> <EPS-DILUTED> .02 <FN> <F1>Amount presented represents engineering and development expense <F2>Amount presented represents Basic Net Income (loss) per share </FN>