<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED BALANCE SHEETS OF AVTEL COMMUNICATIONS, INC. AND SUBSIDIARIES AS OF MARCH 31, 1998 AND THE RELATED CONSOLIDATED STATEMENTS OF OPERATIONS AND CASH FLOWS FOR THE THREE MONTHS THEN ENDED AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <RESTATED> <MULTIPLIER> 1,000 <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-END> MAR-31-1998 <CASH> 3,995 <SECURITIES> 0 <RECEIVABLES> 7,423 <ALLOWANCES> 0 <INVENTORY> 0 <CURRENT-ASSETS> 14,859 <PP&E> 4,769 <DEPRECIATION> 3,070 <TOTAL-ASSETS> 18,036 <CURRENT-LIABILITIES> 10,214 <BONDS> 0 <PREFERRED-MANDATORY> 1 <PREFERRED> 0 <COMMON> 111 <OTHER-SE> 6,593 <TOTAL-LIABILITY-AND-EQUITY> 18,036 <SALES> 12,445 <TOTAL-REVENUES> 12,445 <CGS> 9,288 <TOTAL-COSTS> 9,288 <OTHER-EXPENSES> 4,861 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 12 <INCOME-PRETAX> (1,672) <INCOME-TAX> (304) <INCOME-CONTINUING> 0 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (1,368) <EPS-BASIC> (.15) <EPS-DILUTED> (.15)