<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM EXCEL
SWITCHING CORPORATIONS 1998 CONSOLIDATED FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-START>                             DEC-28-1997
<PERIOD-END>                               DEC-31-1998
<CASH>                                          62,517
<SECURITIES>                                    55,579
<RECEIVABLES>                                   30,912
<ALLOWANCES>                                   (2,000)
<INVENTORY>                                      5,404
<CURRENT-ASSETS>                               163,886
<PP&E>                                          25,671
<DEPRECIATION>                                 (7,233)
<TOTAL-ASSETS>                                 198,782
<CURRENT-LIABILITIES>                           32,483
<BONDS>                                          4,858
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           340
<OTHER-SE>                                     161,101
<TOTAL-LIABILITY-AND-EQUITY>                   198,782
<SALES>                                        123,258
<TOTAL-REVENUES>                               123,258
<CGS>                                           35,603
<TOTAL-COSTS>                                   35,603
<OTHER-EXPENSES>                                57,113
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                               (295)
<INCOME-PRETAX>                                 36,669
<INCOME-TAX>                                    14,979
<INCOME-CONTINUING>                             21,690
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                    21,690
<EPS-PRIMARY>                                      .65
<EPS-DILUTED>                                      .55