<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM PICTURETEL'S
BALANCE SHEET AND INCOME STATEMENT FOR THE PERIOD ENDED SEPTEMBER 30, 2000 AND
IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH 10-Q FILING.

<MULTIPLIER> 1,000
<CURRENCY> US DOLLARS

                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-2000
<PERIOD-START>                             JAN-01-2000
<PERIOD-END>                               SEP-30-2000
<EXCHANGE-RATE>                                      1
<CASH>                                          21,379
<SECURITIES>                                         0
<RECEIVABLES>                                   67,658
<ALLOWANCES>                                   (3,211)
<INVENTORY>                                     28,647
<CURRENT-ASSETS>                               123,902
<PP&E>                                         170,953
<DEPRECIATION>                               (132,302)
<TOTAL-ASSETS>                                 182,492
<CURRENT-LIABILITIES>                           89,735
<BONDS>                                              0
<PREFERRED-MANDATORY>                           52,134
<PREFERRED>                                          0
<COMMON>                                           412
<OTHER-SE>                                      20,167
<TOTAL-LIABILITY-AND-EQUITY>                   182,492
<SALES>                                        196,251
<TOTAL-REVENUES>                               196,251
<CGS>                                          151,126
<TOTAL-COSTS>                                  151,126
<OTHER-EXPENSES>                               141,293
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                               2,147
<INCOME-PRETAX>                               (97,361)
<INCOME-TAX>                                     1,385
<INCOME-CONTINUING>                           (98,746)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                  (98,746)
<EPS-BASIC>                                     (2.58)
<EPS-DILUTED>                                   (2.58)