<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-31-1996         DEC-31-1996         DEC-31-1996       DEC-31-1995
<PERIOD-END>                    SEP-30-1996         JUN-30-1996         MAR-31-1996       DEC-31-1995
<CASH>                            1,194,629           1,868,071           4,434,955         3,856,533
<SECURITIES>                      3,091,832           3,671,928           3,462,194         3,439,000
<RECEIVABLES>                     2,930,435           3,531,095           2,968,536         3,411,646
<ALLOWANCES>                        178,674             239,054             245,759           225,909
<INVENTORY>                         292,030             384,448             305,551           326,311
<CURRENT-ASSETS>                  8,529,534          10,288,877          11,759,868        11,502,796
<PP&E>                            7,106,401           6,666,092           6,010,839         5,738,256
<DEPRECIATION>                    3,921,123           3,761,989           3,564,320         3,374,494
<TOTAL-ASSETS>                   16,567,737          16,789,559          14,904,996        14,384,888
<CURRENT-LIABILITIES>             7,823,707           8,399,412           7,790,870         7,609,236
<BONDS>                                   0                   0                   0                 0
<PREFERRED-MANDATORY>               360,238             356,215             345,906                 0
<PREFERRED>                               0                   0                   0                 0
<COMMON>                                  0                   0                   0           345,906
<OTHER-SE>                        7,661,787           7,293,093           6,329,351         6,014,855
<TOTAL-LIABILITY-AND-EQUITY>     16,567,737          16,789,559          14,904,996        14,384,888
<SALES>                          20,436,345<F1>      13,491,323<F1>       6,678,197<F1>    13,435,099
<TOTAL-REVENUES>                 20,436,345          13,491,323           6,678,197        24,819,365
<CGS>                             2,540,034           1,664,201             807,885         2,836,423
<TOTAL-COSTS>                    11,158,549           6,964,731           3,529,439        13,600,803
<OTHER-EXPENSES>                          0                   0                   0                 0
<LOSS-PROVISION>                          0                   0                   0                 0
<INTEREST-EXPENSE>                        0                   0                   0               725
<INCOME-PRETAX>                   1,960,423           1,620,408             740,858         2,446,743
<INCOME-TAX>                        627,000             625,000             288,000           714,000
<INCOME-CONTINUING>               1,333,423             995,408             452,858         1,732,743
<DISCONTINUED>                            0                   0                   0                 0
<EXTRAORDINARY>                           0                   0                   0                 0
<CHANGES>                                 0                   0                   0                 0
<NET-INCOME>                      1,333,423             995,408             452,858         1,732,743
<EPS-PRIMARY>                           .20<F2>             .15<F2>             .07<F2>           .27<F2>
<EPS-DILUTED>                           .19<F2>             .14<F2>             .07<F2>           .25<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>