<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM PICTURETEL'S
BALANCE SHEET AND INCOME STATEMENT FOR THE PERIOD ENDED JULY 4, 1999 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH 10-Q FILING.

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

                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1999
<PERIOD-START>                             JAN-01-1999
<PERIOD-END>                               JUL-04-1999
<EXCHANGE-RATE>                                      1
<CASH>                                          49,944
<SECURITIES>                                    43,800
<RECEIVABLES>                                   78,156
<ALLOWANCES>                                   (6,433)
<INVENTORY>                                     36,130
<CURRENT-ASSETS>                               219,755
<PP&E>                                         209,440
<DEPRECIATION>                               (118,564)
<TOTAL-ASSETS>                                 342,441
<CURRENT-LIABILITIES>                          112,311
<BONDS>                                              0
<PREFERRED-MANDATORY>                           30,500
<PREFERRED>                                          0
<COMMON>                                           404
<OTHER-SE>                                     143,717
<TOTAL-LIABILITY-AND-EQUITY>                   342,441
<SALES>                                        162,156
<TOTAL-REVENUES>                               162,156
<CGS>                                          110,909
<TOTAL-COSTS>                                  110,909
<OTHER-EXPENSES>                               107,718
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                               2,499
<INCOME-PRETAX>                               (55,745)
<INCOME-TAX>                                     2,057
<INCOME-CONTINUING>                           (57,802)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                  (57,802)
<EPS-BASIC>                                   (1.57)
<EPS-DILUTED>                                   (1.57)