<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 DECEMBER 31, 1998 
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          MAR-31-1999
<PERIOD-START>                             APR-01-1998
<PERIOD-END>                               DEC-31-1998
<CASH>                                          17,372
<SECURITIES>                                    10,569
<RECEIVABLES>                                   58,596
<ALLOWANCES>                                     4,772
<INVENTORY>                                     55,018
<CURRENT-ASSETS>                               149,769
<PP&E>                                          95,112
<DEPRECIATION>                                  51,281
<TOTAL-ASSETS>                                 200,989
<CURRENT-LIABILITIES>                           66,838
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           470
<OTHER-SE>                                     133,229
<TOTAL-LIABILITY-AND-EQUITY>                   200,989
<SALES>                                        176,774
<TOTAL-REVENUES>                               176,774
<CGS>                                          179,230
<TOTAL-COSTS>                                  179,230
<OTHER-EXPENSES>                                91,940
<LOSS-PROVISION>                                 4,282
<INTEREST-EXPENSE>                                 199
<INCOME-PRETAX>                               (93,548)
<INCOME-TAX>                                       522
<INCOME-CONTINUING>                           (94,070)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                  (94,070)
<EPS-PRIMARY>                                   (1.53)
<EPS-DILUTED>                                   (1.53)