<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS IN THE QUARTERLY REPORT ON FORM 
10-Q OF DIGITAL MICROWAVE CORPORATION FOR THE QUARTER ENDED JUNE 30, 1998 AND 
IS  QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          MAR-31-1999
<PERIOD-START>                             APR-01-1998
<PERIOD-END>                               JUN-30-1998
<CASH>                                          14,764
<SECURITIES>                                     6,637
<RECEIVABLES>                                   65,936
<ALLOWANCES>                                     5,633
<INVENTORY>                                     65,981
<CURRENT-ASSETS>                               162,825
<PP&E>                                          75,537
<DEPRECIATION>                                  42,631
<TOTAL-ASSETS>                                 211,083
<CURRENT-LIABILITIES>                           48,408
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           467
<OTHER-SE>                                     162,023
<TOTAL-LIABILITY-AND-EQUITY>                   211,083
<SALES>                                         53,003
<TOTAL-REVENUES>                                53,003
<CGS>                                           41,660
<TOTAL-COSTS>                                   41,660
<OTHER-EXPENSES>                                26,183
<LOSS-PROVISION>                                 1,838
<INTEREST-EXPENSE>                                  27
<INCOME-PRETAX>                               (13,935)
<INCOME-TAX>                                        27
<INCOME-CONTINUING>                           (13,962)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                  (13,962)
<EPS-PRIMARY>                                    (.30)
<EPS-DILUTED>                                    (.30)