<TABLE> <S> <C>

 <ARTICLE> 5
<LEGEND>
         THIS SCHEDULE CONTAINS RESTATED SUMMARY FINANCIAL INFORMATION EXTRACTED
         FROM TIMBERLINE SOFTWARE CORPORATION'S  RESPECTIVE FINANCIAL STATEMENTS
         FOR THE RESPECTIVE  PERIODS THEN ENDED AND IS QUALIFIED IN ITS ENTIRETY
         BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1

<S>                             <C>                 <C>                 <C>              <C>
<PERIOD-TYPE>                   9-MOS               6-MOS               3-MOS            12-MOS
<FISCAL-YEAR-END>               DEC-31-1997         DEC-31-1997         DEC-31-1997       DEC-31-1996
<PERIOD-END>                    SEP-30-1997         JUN-30-1997         MAR-31-1997       DEC-31-1996
<CASH>                            1,480,628           3,542,888           4,604,905         3,128,703
<SECURITIES>                      6,893,510           5,865,268             749,908         1,447,521
<RECEIVABLES>                     4,155,120           3,426,947           3,560,395         3,872,353
<ALLOWANCES>                        161,139             166,407             176,407           178,674
<INVENTORY>                         250,416             267,645             275,148           308,751
<CURRENT-ASSETS>                 13,772,267          14,273,441          10,329,786         9,641,038
<PP&E>                           10,897,293           7,846,746           7,561,739         7,236,600
<DEPRECIATION>                    4,785,656           4,397,415           4,222,332         3,969,984
<TOTAL-ASSETS>                   22,160,996          19,753,382          18,411,881        18,042,227
<CURRENT-LIABILITIES>             9,695,605           8,546,006           8,442,176         8,316,286
<BONDS>                                   0                   0                   0                 0
<PREFERRED-MANDATORY>               371,060             369,883             364,928                 0
<PREFERRED>                               0                   0                   0                 0
<COMMON>                                  0                   0                   0           364,368
<OTHER-SE>                       11,080,850           9,926,131           8,764,534         8,550,449
<TOTAL-LIABILITY-AND-EQUITY>     22,160,996          19,753,382          18,411,881        18,042,227
<SALES>                          24,527,956<F1>      15,732,664<F1>       7,507,695<F1>    14,983,122
<TOTAL-REVENUES>                 24,527,956          15,732,664           7,507,695        28,659,031
<CGS>                             2,671,372           1,830,906             923,556         3,513,987
<TOTAL-COSTS>                    13,008,191           8,527,829           4,324,320        15,563,741
<OTHER-EXPENSES>                          0                   0                   0                 0
<LOSS-PROVISION>                          0                   0                   0                 0
<INTEREST-EXPENSE>                        0                   0                   0             2,925
<INCOME-PRETAX>                   3,838,041           2,086,755             509,895         3,053,623
<INCOME-TAX>                      1,286,000             772,000             178,000           870,000
<INCOME-CONTINUING>               2,552,041           1,314,755             331,895         2,183,623
<DISCONTINUED>                            0                   0                   0                 0
<EXTRAORDINARY>                           0                   0                   0                 0
<CHANGES>                                 0                   0                   0                 0
<NET-INCOME>                      2,552,041           1,314,755             331,895         2,183,623
<EPS-PRIMARY>                           .37<F2>             .19<F2>             .05<F2>           .33<F2>
<EPS-DILUTED>                           .36<F2>             .18<F2>             .05<F2>           .31<F2>
<FN>
<F1> Amount includes revenue from services which is not separately presented for
interim reports.
<F2> Reflects a five-for-four stock split paid in November 1997 and the adoption
in fourth  quarter  1997 of SFAS No.  128, a new  standard  for  presenting  and
computing both basic and diluted earnings per share.
</FN>


</TABLE>