<ARTICLE> 5 <LEGEND> This schedule contains summary financial information extracted from the financial statements in the Quarterly Report on Form 10-Q of DSP Communications, Inc. for the nine months ended September 30, 1997 and is qualified in its entirety by reference to such financial statements. </LEGEND> <MULTIPLIER> 1,000 <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-START> JAN-01-1997 <PERIOD-END> SEP-30-1997 <CASH> 69,195 <SECURITIES> 31,352 <RECEIVABLES> 12,633 <ALLOWANCES> 132 <INVENTORY> 0 <CURRENT-ASSETS> 118,961 <PP&E> 7,510 <DEPRECIATION> 3,343 <TOTAL-ASSETS> 127,033 <CURRENT-LIABILITIES> 20,598 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 40 <OTHER-SE> 105,545 <TOTAL-LIABILITY-AND-EQUITY> 105,585 <SALES> 45,876 <TOTAL-REVENUES> 49,467 <CGS> 23,509 <TOTAL-COSTS> 26,953 <OTHER-EXPENSES> 4,582 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 14,155 <INCOME-TAX> 1,400 <INCOME-CONTINUING> 12,755 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 12,755 <EPS-PRIMARY> 0.28 <EPS-DILUTED> 0.28