<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 DECEMBER 31, 1997 AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED> 
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          MAR-31-1998
<PERIOD-START>                             APR-01-1997
<PERIOD-END>                               DEC-31-1997
<CASH>                                          61,558
<SECURITIES>                                    19,211
<RECEIVABLES>                                   91,951
<ALLOWANCES>                                     4,663
<INVENTORY>                                     68,006
<CURRENT-ASSETS>                               245,317
<PP&E>                                          71,167
<DEPRECIATION>                                  39,589
<TOTAL-ASSETS>                                 293,176
<CURRENT-LIABILITIES>                           65,444
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           381
<OTHER-SE>                                     226,179
<TOTAL-LIABILITY-AND-EQUITY>                   293,176
<SALES>                                        251,271
<TOTAL-REVENUES>                               251,271
<CGS>                                          160,396
<TOTAL-COSTS>                                  160,396
<OTHER-EXPENSES>                                65,348
<LOSS-PROVISION>                                 1,217
<INTEREST-EXPENSE>                                 581
<INCOME-PRETAX>                                 27,661
<INCOME-TAX>                                     4,461
<INCOME-CONTINUING>                             23,200
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    23,200
<EPS-PRIMARY>                                     0.48
<EPS-DILUTED>                                     0.46