<ARTICLE> 5 <RESTATED> <CIK> 0000919048 <NAME> APPLIED DIGITAL ACCESS, INC. <MULTIPLIER> 1,000 <PERIOD-TYPE> 6-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-START> JAN-01-1998 <PERIOD-END> JUN-30-1998 <CASH> 3,134 <SECURITIES> 9,876 <RECEIVABLES> 9,103 <ALLOWANCES> (100) <INVENTORY> 5,924 <CURRENT-ASSETS> 30,448 <PP&E> 14,089 <DEPRECIATION> (7,829) <TOTAL-ASSETS> 39,887 <CURRENT-LIABILITIES> 10,213 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 51,998 <OTHER-SE> 2,591 <TOTAL-LIABILITY-AND-EQUITY> 39,887 <SALES> 13,852 <TOTAL-REVENUES> 13,852 <CGS> 7,405 <TOTAL-COSTS> 7,405 <OTHER-EXPENSES> 14,515 <LOSS-PROVISION> 50 <INTEREST-EXPENSE> 2 <INCOME-PRETAX> (7,792) <INCOME-TAX> 73 <INCOME-CONTINUING> (7,865) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (7,865) <EPS-PRIMARY> (0.62) <EPS-DILUTED> (0.62)