<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM PICTURETEL'S
BALANCE SHEET AND INCOME STATEMENT FOR THE PERIOD ENDING OCTOBER 3, 1999 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH 10-Q FILING

<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS

                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1999
<PERIOD-START>                             JAN-01-1999
<PERIOD-END>                               OCT-03-1999
<EXCHANGE-RATE>                                      1
<CASH>                                          21,170
<SECURITIES>                                    51,864
<RECEIVABLES>                                   76,424
<ALLOWANCES>                                   (6,876)
<INVENTORY>                                     35,425
<CURRENT-ASSETS>                               192,031
<PP&E>                                         212,737
<DEPRECIATION>                               (123,639)
<TOTAL-ASSETS>                                 309,395
<CURRENT-LIABILITIES>                           97,015
<BONDS>                                              0
<PREFERRED-MANDATORY>                           30,500
<PREFERRED>                                          0
<COMMON>                                           405
<OTHER-SE>                                     126,416
<TOTAL-LIABILITY-AND-EQUITY>                   309,395
<SALES>                                        240,969
<TOTAL-REVENUES>                               240,969
<CGS>                                          164,792
<TOTAL-COSTS>                                  164,792
<OTHER-EXPENSES>                               151,878
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                               3,358
<INCOME-PRETAX>                               (65,671)
<INCOME-TAX>                                     2,698
<INCOME-CONTINUING>                           (68,369)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                  (68,369)
<EPS-BASIC>                                     (1.83)
<EPS-DILUTED>                                   (1.83)