<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 FISCAL QUARTER ENDED 
SEPTEMBER 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH 
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          MAR-31-1999
<PERIOD-START>                             APR-01-1998
<PERIOD-END>                               SEP-30-1998
<CASH>                                          16,984
<SECURITIES>                                     6,592
<RECEIVABLES>                                   51,393
<ALLOWANCES>                                     4,935
<INVENTORY>                                     62,144
<CURRENT-ASSETS>                               145,886
<PP&E>                                          79,114
<DEPRECIATION>                                  44,074
<TOTAL-ASSETS>                                 196,134
<CURRENT-LIABILITIES>                           39,352
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           470
<OTHER-SE>                                     154,611
<TOTAL-LIABILITY-AND-EQUITY>                   196,134
<SALES>                                        102,614
<TOTAL-REVENUES>                               102,614
<CGS>                                           80,948
<TOTAL-COSTS>                                   80,948
<OTHER-EXPENSES>                                43,905
<LOSS-PROVISION>                                 3,847
<INTEREST-EXPENSE>                                  79
<INCOME-PRETAX>                               (20,951)
<INCOME-TAX>                                        96
<INCOME-CONTINUING>                           (21,047)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                  (21,047)
<EPS-PRIMARY>                                   (0.45)
<EPS-DILUTED>                                   (0.45)