<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS IN THE QUARTERLY REPORT ON FORM 10-Q OF DIGITAL MICROWAVE
CORPORATION FOR THE QUARTER ENDED JUNE 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000

                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          MAR-31-1999
<PERIOD-START>                             APR-01-1998
<PERIOD-END>                               JUN-30-1998
<CASH>                                          25,293
<SECURITIES>                                     6,637
<RECEIVABLES>                                   79,409
<ALLOWANCES>                                     6,083
<INVENTORY>                                     88,650
<CURRENT-ASSETS>                               177,445
<PP&E>                                          97,547
<DEPRECIATION>                                  47,984
<TOTAL-ASSETS>                                 274,991
<CURRENT-LIABILITIES>                           62,938
<BONDS>                                            796
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                           614
<OTHER-SE>                                     210,643
<TOTAL-LIABILITY-AND-EQUITY>                   274,991
<SALES>                                         63,211
<TOTAL-REVENUES>                                63,211
<CGS>                                           49,502
<TOTAL-COSTS>                                   49,502
<OTHER-EXPENSES>                                30,068
<LOSS-PROVISION>                                 1,838
<INTEREST-EXPENSE>                                  31
<INCOME-PRETAX>                               (15,454)
<INCOME-TAX>                                        28
<INCOME-CONTINUING>                           (15,482)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                  (15,482)
<EPS-BASIC>                                     (0.25)
<EPS-DILUTED>                                   (0.25)