<PAGE>

                      SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C. 20549

                                  FORM 10-Q
              QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
                    OF THE SECURITIES EXCHANGE ACT OF 1934


For the quarterly period ended                   Commission file number: 0-15895
JUNE 30, 1997


                        DIGITAL MICROWAVE CORPORATION
                        -----------------------------
             (Exact name of registrant specified in its charter)

           Delaware                                            77-0016028
-----------------------------------                           -----------
  (State or other jurisdiction                                (IRS employer
of incorporation or organization)                         identification number)

      170 Rose Orchard Way
           San Jose, CA                                           95134
------------------------------------------                        -----
(Address of Principal Executive Offices)                        (Zip Code)

Registrant's telephone number, including area code:           (408) 943-0777
                                                              --------------


Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the Registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

                           Yes   X         No
                               -----          -----

The number of outstanding shares of  the Registrant's common stock, par value
$.01 per share, was 18,826,666 on July 31, 1997.



                                                                    Page 1 of 16
<PAGE>

                                    INDEX



                                                                          PAGE


COVER PAGE                                                                  1

INDEX                                                                       2

PART I - FINANCIAL INFORMATION


     Item 1 - Financial Statements

              Condensed Consolidated Balance Sheets                         3

              Condensed Consolidated Statements of Operations               4

              Condensed Consolidated Statements of Cash Flows               5

              Notes to Condensed Consolidated Financial Statements          6-8

     Item 2 - Management's Discussion and Analysis of 
              Financial Condition and Results of Operations                 9-13

PART II - OTHER INFORMATION

     Item 6 - Exhibits and Reports on Form 8-K                             14-15


SIGNATURE                                                                  16


                                                                            2
<PAGE>

                        PART I - FINANCIAL INFORMATION
                        ITEM I - FINANCIAL STATEMENTS

                        DIGITAL MICROWAVE CORPORATION
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                   (In thousands, except per share amounts)


ASSETS                                                    6/30/97      03/31/97
                                                          -------      --------
                                                         (Unaudited)
CURRENT ASSETS:
  Cash and cash equivalents                               $11,897     $  40,367
  Short-term investments                                   15,114        17,947
  Accounts receivable, net                                 52,152        44,623
  Inventories                                              48,863        45,900
  Other current assets                                      4,477         3,643
                                                            -----         -----
  Total current assets                                    132,503       152,480

PROPERTY AND EQUIPMENT, NET                                20,702        17,726
OTHER ASSETS                                               15,038           --
                                                           ------       -------
  Total assets                                          $ 168,243      $170,206
                                                        ---------      --------
                                                        ---------      --------

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
  Lines of credit                                       $    --        $  2,016
  Current maturities of capital lease obligations             708           681
  Accounts payable                                         23,684        22,890
  Income taxes payable                                      2,427         1,649
  Accrued liabilities                                      16,837        25,284
                                                          -------       -------
    Total current liabilities                              43,656        52,520

LONG-TERM LIABILITIES:
  Capital lease obligations, net of current maturities        685           158
                                                          -------       -------
     Total liabilities                                     44,341        52,678

STOCKHOLDERS' EQUITY
  Common stock and paid-in capital                        122,469       121,676
  Other stockholders' equity                                 (267)          (63)
  Retained earnings (accumulated deficit)                   1,700        (4,085)
                                                          -------        -------
    Total stockholders' equity                            123,902       117,528

  Total liabilities and stockholders' equity            $ 168,243      $170,206
                                                        ---------      --------
                                                        ---------      --------

See accompanying Notes to Condensed Consolidated Financial Statements.


                                                                            3
<PAGE>

                         DIGITAL MICROWAVE CORPORATION
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                  (In thousands, except per share amounts)
                                  (Unaudited)


                                                          Three Months Ended
                                                                June 30,
                                                                --------
                                                          1997          1996
                                                      --------      --------
Net Sales                                             $ 56,733      $ 36,807
Cost of sales                                           37,060        24,902
                                                      --------      --------
Gross profit                                            19,673        11,905
                                                      --------      --------
Operating expenses:
    Research and development                             3,482         2,461
    Selling, general and administrative                 10,131         7,927
                                                      --------      --------
    Total operating expenses                            13,613        10,388
                                                      --------      --------
Operating income                                         6,060         1,517

Other income (expense):
Interest income                                            629           59
Interest expense                                          (104)        (282)
Other expense, net                                        (157)         (46)
                                                      --------      --------
Income before provision for income taxes                 6,428        1,248

Provision for income taxes                                 643          125
                                                      --------      --------
Net income                                            $  5,785      $ 1,123
                                                      --------      --------
                                                      --------      --------
Net income per share                                  $   0.30      $  0.07
                                                      --------      --------
                                                      --------      --------
Weighted average number of common  & common
    equivalent shares outstanding                       19,483       16,242
                                                      --------      --------
                                                      --------      --------

See accompanying Notes to Condensed Consolidated Financial Statements.


                                                                            4
<PAGE>

                       DIGITAL MICROWAVE CORPORATION
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                              (In thousands)
                                (Unaudited)

                                                          Three Months Ended
                                                                June 30,
                                                                --------
                                                          1997          1996
                                                        --------     --------
Cash flows from operating activities:
Net income                                               $ 5,785     $ 1,123
  Adjustments to reconcile net income to net cash
  used for operating activities:

  Depeciation and amortization                             1,942       1,117
  Provision for valuation reserves                           883         783
  Provision for warranty reserves                            606         386
  Changes in assets and liabilities, net 
     of affect of acquisition:
     Decrease (increase) in accounts receivable           (5,776)        343
     Increase in inventories                              (1,988)     (9,074)
     Increase in deferred tax asset                         (700)         --
     Decrease in other current assets                         55          43
     Increase in accounts payable                            284       3,903
     Increase in income tax payable                          753          --
     Decrease in other accrued liabilities               (10,183)     (2,296)
                                                        --------     --------
Net cash used for operating activities                    (8,339)     (3,672)

Cash flows from investing activities:
   Purchases of available-for-sale securities               (991)         --
   Proceeds from available-for-sale securities             3,823          --
   Purchase of Granger, Inc., net of cash acquired       (11,389)         --
   Investment in Granger Associates, Ltd.                 (4,000)         --
   Purchases of property and equipment                    (2,801)      ( 746)
                                                        --------     --------
Net cash used in investing activities                    (15,358)       (746)

Cash flows from financing activities:
  Repayments to bank                                      (2,016)       (922)
  Payment of capital lease obligations                      (247)       (296)
  Payment of assumed Granger, Inc. debt                   (3,286)          --
  Sale of common stock                                       792         668
                                                        --------     --------
Net cash used in financing activities                     (4,757)       (550)

Effect of exchange rate changes on cash                      (16)       (164)
                                                        --------     --------
Net increase (decrease) in cash and cash equivalents     (28,470)     (5,132)
Cash and cash equivalents at beginning of year            40,367       9,018
                                                        --------     --------
Cash and cash equivalents at end of period               $11,897      $3,886
                                                        --------     --------
                                                        --------     --------
SUPPLEMENTAL DATA
  Interest paid                                              113         275
  Income tax paid                                            601          --

See accompanying Notes to Condensed Consolidated Financial Statements.


                                                                            5
<PAGE>

                     DIGITAL MICROWAVE CORPORATION
          NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                              (Unaudited)

BASIS OF PRESENTATION

     The condensed consolidated financial statements include the accounts
     of Digital Microwave Corporation and its wholly owned subsidiaries.
     Intercompany accounts and transactions have been eliminated.

     While the financial information furnished is unaudited, the financial
     statements included in this report reflect all adjustments (consisting
     only of normal recurring adjustments) which the Company considers
     necessary for a fair presentation of the results of operations for the
     interim periods covered and of the financial condition of the Company
     at the date of the interim balance sheet.  The results for interim
     periods are not necessarily indicative of the results for the entire
     year.  The condensed consolidated financial statements should be read
     in connection with the Digital Microwave Corporation financial
     statements included in the Company's annual report and Form 10-K for
     the Fiscal year ended March 31, 1997.

CASH AND CASH EQUIVALENTS

     For purposes of the consolidated statements of cash flows, the Company
     considers all highly liquid debt instruments with an original maturity
     of three months or less to be cash equivalents.

INVENTORIES

     Inventories are stated at the lower of cost (first-in, first-out) or
     market where cost includes material, labor and manufacturing overhead.
     Inventories consist of:
                                                  (In thousands)
                                         JUNE 30, 1997         MARCH 31 1997
                                         -------------         -------------
                                          (Unaudited)

     Raw materials                            21,423               $  16,594
     Work in process                          13,160                  15,122
     Finished goods                           14,280                  14,184
                                            --------                --------
                                           $  48,863               $  45,900
                                            --------                --------
                                            --------                --------
OTHER ASSETS

     Included in other assets are goodwill and other intangibles which are
     being amortized on a straight line basis over their useful lives
     ranging from 5 to 10 years.

CURRENCY TRANSLATION

     In April 1997, the Company changed the functional currency of its 
subsidiaries from the U.S. dollar to the local currency of each subsidiary 
except for its and Latin America subsidiaries. Accordingly, all the assets 
and liabilities of these subsidiaries except for the Latin America 
subsidiaries are remeasured into U.S. dollars at the current exchange rate as 
of the balance sheet date. Sales and expenses are remeasured at the average 
exchange rate prevailing during the period. Gains and losses resulting from 
the remeasurement of the subsidiaries' financial statements are included as a 
component of stockholders' equity, except for Latin America subsidiaries 
which is included in the Consolidated Statement of Operations.

FINANCIAL INSTRUMENTS

In April 1997, the Company began entering into forward exchange contracts to 
hedge some of its backlog and certain assets and liabilities denominated in 
foreign currencies. At June 30, 1997, the Company had forward exchange 
contracts to exchange various foreign currencies for U.S. dollars in the 
gross amount of $26.3 million. Market value gains and losses on forward 
exchange contracts are recognized as offsets to the exchange gains or losses 
on the hedged transactions.


                                                                            6
<PAGE>

NET INCOME PER SHARE

     Net income per share is computed using the weighted average number of
     common and common equivalent shares outstanding during the period.

     In February 1997, the Financial Accounting Standards Board issued
     Statement on Financial Accounting Standards No. 128 (SFAS 128),
     "Earnings per Share," which is required to be adopted by the Company
     in its third quarter of Fiscal 1998.   At that time the Company will
     be required to change the method currently used to compute earnings
     per share and to restate all prior periods.  Under the new
     requirements, primary earnings per share will be replaced with basic
     earnings per share and fully diluted earnings per share will be
     replaced with diluted earnings per share.  Under SFAS 128, basic
     earnings per share for the first quarters of Fiscal 1998 and 1997
     would have been $.31 and $ .07, respectively.  Diluted earnings per
     share would be substantially the same as the reported primary earnings
     per share.

PURCHASE OF GRANGER, INC AND INVESTMENT IN GRANGER ASSOCIATES

     On May 14, 1997, the Company acquired all of the outstanding shares of
     Granger, Inc., a U.S. manufacturer of wireless products and provider
     of installation services.  The purchase price of Granger, Inc. and the
     purchase of certain rights, totaled $14.7 million.  In May 1997, the
     Company paid  $3.3  million of  Granger, Inc. debt assumed in the
     acquisition.  The purchase price and repayment of debt was funded with
     existing cash.  The acquisition has been accounted for using the
     purchase method of accounting.

     Accordingly, the results of Granger operations have been combined with
     those of the Company since the date of acquisition.  In addition, a
     portion of the purchase price was allocated to the net assets acquired
     based on their estimated fair values.  The fair values of tangible
     assets acquired and liabilities assumed were $5.8 million and $1.9
     million, respectively.

     Concurrent with the acquisition of Granger, Inc., the Company made a
     minority investment in Granger Associates, Ltd., a privately held
     company based in the United Kingdom, for $4.0 million.  This minority
     investment has been accounted for under the cost method of accounting.

LITIGATION AND CONTINGENCIES

     The Company is subject to legal proceedings and claims that arise
     in the normal course of its business.  In the opinion of management,
     these proceedings will not have a material adverse effect on the
     financial position and results of operations of the Company.


                                                                            7
<PAGE>

CONCENTRATION OF CREDIT RISK

     Trade receivables concentrated with certain customers primarily in the 
     telecommunications industry and in certain geographic locations 
     potentially subject the Company to concentration of credit risk.  In 
     addition to sales in Western Europe and North America, the Company 
     actively markets and sells products in Asia, Eastern Europe, South 
     America, the Middle East and Africa.  The Company performs on-going 
     credit evaluations of its customers' financial conditions and generally 
     requires no collateral.


                                                                             8
<PAGE>

ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND 
         RESULTS OF OPERATIONS

The following table sets forth the percentage relationships of certain items 
from the Company's Condensed Consolidated Statements of Operations as 
percentages of net sales:

                                             Three Months Ended
                                                  June 30,
                                            ---------------------
                                             1997           1996
                                            -----          -----
Net sales                                   100.0%         100.0%
Cost of sales                                65.3           67.7
                                            -----          -----
Gross profit                                 34.7           32.3

Research & development                        6.1            6.7
Selling, general & administrative            17.9           21.5
                                            -----          -----
Operating income                             10.7            4.1

Other income (expense), net                   0.6           (0.7)
                                            -----          -----
Income before provision for income taxes     11.3            3.4

Provision for income taxes                    1.1            0.3
                                            -----          -----
          Net income                         10.2%           3.1%
                                            -----          -----

Net sales for the first quarter of Fiscal 1998 were $56.7 million, compared 
to $36.8 million reported in the same quarter of Fiscal 1997. The increase in 
net sales was primarily due to higher product demand in all regions and an 
increase in the Company's  manufacturing capacity.

During the first quarter of Fiscal 1998, the Company received $71 million in 
new orders shippable over the next twelve months, compared to $34 million in 
the first quarter of Fiscal 1997.  Twelve month backlog at June 30, 1997 was 
$106 million, compared to $92 million at March 31, 1997.

The Company includes in its backlog purchase orders with respect to which a 
delivery schedule has been specified for product shipment within one year.  
Orders in the Companys current backlog are subject to changes in delivery 
schedules or to cancellation at the option of the purchaser without 
significant penalty.  Accordingly, although useful for scheduling production, 
backlog as of any particular date may not be a reliable measure of sales for 
any future period.

Gross profit as a percentage of net sales for the first quarter of Fiscal 
1998 was 34.7% compared to 32.3% in the same quarter of Fiscal 1997.  The 
improved margins were primarily the result of lower manufacturing expenses 
due to lower component material costs and improved manufacturing efficiency.  
The Company has seen its gross profit continue to improve, however, there can 
be no assurance that the Company will be able to maintain its 


                                                                             9
<PAGE>

gross profit at current levels.  Of particular concern is the intense 
competitive price pressure of the telecommunications market, which results in 
downward pricing pressure on the Company's products.  SEE "FACTORS THAT MAY 
AFFECT FUTURE FINANCIAL RESULTS."

Research and development expenses increased by $1.0 million, from $2.5 
million in the first quarter of Fiscal 1997 to $3.5 million in the same 
period in Fiscal 1998.  However, as a percentage of net sales, research and 
development expenses were 6.1% in the first quarter of Fiscal 1998 compared 
to 6.7% in the first quarter of Fiscal 1997.  The increase in research and 
development expenses in absolute dollars was primarily attributable to the 
Company's development of its new Altium-TM- high-capacity wireless platform 
which was previewed at the Supercomm '97 trade show in New Orleans in June 
1997.  The Company will continue to invest in the development of new products 
and features in order to maintain and enhance its competitive position and 
expects research and development spending to continue to increase in Fiscal 
1998.

Selling, general and administrative expenses increased to $10.1 million in 
the first quarter of Fiscal 1998 from $7.9 million in the first quarter of 
Fiscal 1997.  However, as a percentage of net sales, selling, general and 
administrative expenses were 17.9% in the first quarter of Fiscal 1998 
compared to 21.5% in the comparable quarter of Fiscal 1997.  The increase in 
selling, general and administrative expenses in absolute dollars was mostly 
attributable to higher headcount and related travel expenses as the Company 
continues to increase its  worldwide sales and customer support capability.  
In addition, there was an increase in marketing expenses in the first quarter 
of Fiscal 1998 compared to the same quarter of Fiscal 1997 due to the 
Company's increased participation in trade shows.

Interest income increased to $0.6 million in the first quarter of Fiscal 1998 
compared to $0.06 million in the similar quarter of Fiscal 1997.  This 
increase was due primarily to higher average cash balances.  The decrease in 
interest expense of $0.2 million in the first quarter of Fiscal 1998  was 
primarily attributable to lower debt balances as compared to the same quarter 
of the prior year.

The Company recorded an income tax provision in the first quarter of Fiscal 
1998 and 1997 at an effective rate of 10%.  This was less than the statutory 
rate primarily due to the utilization of  net operating loss carry forwards 
and the deferred tax asset originated from warranty and asset valuation 
reserves.  The Company expects, assuming continued operating profitability, 
that the effective tax rate will reflect a benefit in future periods as the 
Company continues to utilize its deferred tax asset.


                                                                            10
<PAGE>

FACTORS THAT MAY AFFECT FUTURE FINANCIAL RESULTS

The statements in this Form 10-Q concerning the Company's expenses, revenue, 
liquidity and cash needs contain forward-looking statements concerning the 
Company's future operations and financial results within the meaning of 27A 
of the Securities Act and section 21E of the Exchange Act.  These 
forward-looking statements are based on current expectations and the Company 
assumes no obligation to update this information.  Numerous factors, such as 
economic and competitive conditions, timing and volume of incoming orders, 
shipment volumes, product margins, and foreign exchange rates, could cause 
actual results to differ materially from those described in these statements, 
and prospective investors and stockholders should carefully consider the 
factors set forth below in evaluating these forward-looking statements.

Sales of the Company's products are concentrated in a small number of 
customers.  For the first quarter of Fiscal 1998, the top three customers 
accounted for 30% of the net sales.  As of June 30, 1997, three of the 
Company's customers accounted for 28% of the backlog. The worldwide 
telecommunications industry is dominated by a small number of large 
corporations, and the Company expects that a significant portion of its 
future product sales will continue to be concentrated in a limited number of 
customers.  The loss of any existing customer, a significant reduction in the 
level of sales to any existing customer, or the failure of the Company to 
gain additional customers could have a material adverse effect on the 
Company's business, financial condition and results of operations.  In 
addition, a substantial portion of shipments may occur near the end of each 
quarter.  Accordingly, the Company's results are difficult to predict and 
delays in product delivery or closing of a sale can cause revenues and net 
income to fluctuate significantly from anticipated levels and from quarter to 
quarter.

Manufacturers of digital microwave telecommunications equipment are 
experiencing, and are likely to continue to experience, intense price 
pressure which has resulted, and is expected to continue to result, in 
downward pricing pressure on the Company's products.  As a result, the 
Company has experienced, and expects to continue to experience, declining 
average sales prices for its products.  The Company's ability to maintain its 
gross profit margins is dependent upon its ability to continue to improve 
manufacturing efficiencies, lower material costs of products, and introduce 
new products and product enhancements.

The markets for the Company's products are extremely competitive, and the 
Company expects that competition will increase.  The Company's existing and 
potential competitors include established and emerging companies, such as 
California Microwave, L.M. Ericsson, Siemens AG, Farinon Division of Harris 
Corporation, P-COM, Alcatel, Nokia, NERA, NEC, and SIAE, many of which have 
more extensive engineering, manufacturing, and marketing capabilities and 
significantly greater financial, technical, and personnel resources than the 
Company.  The Company believes that its ability to compete successfully will 
depend on a number of factors, including customer service and support, 
breadth of product line, product performance and features, rapid delivery, 
reliability, timing of new product introductions by the Company, its 
customers and its competitors, and the ability of its customers to obtain 
financing.


                                                                            11
<PAGE>

The Company expects that international sales will continue to account for the 
majority of its net product sales for the foreseeable future. As a result, 
the Company is subject to the risks of doing business internationally, 
including unexpected changes in regulatory requirements, fluctuations in 
foreign currency exchange rates, imposition of tariffs and other barriers and 
restrictions, the burdens of complying with a variety of foreign laws, and 
general economic and geopolitical conditions, including inflation and trade 
relationships.

The Company's manufacturing operations are highly dependent upon the delivery 
of materials by outside suppliers in a timely manner.  In addition, the 
Company depends in part upon subcontractors to assemble major components and 
subsystems used in its products in a timely and satisfactory manner.  From 
time to time the Company has experienced delivery delays from key suppliers, 
which impacted sales.  There can be no assurance that the Company will not 
experience material supply problems or component or subsystem delays in the 
future.

The Company has pursued, and will continue to pursue, growth opportunities 
through internal development and acquisitions of complementary business and 
technologies.  Acquisitions may involve difficulties in the retention of 
personnel, diversion of management's attention, unexpected legal liabilities, 
and tax and accounting issues.  There can be no assurance that the Company 
will be able to successfully identify suitable acquisition candidates, 
complete acquisitions, integrate acquired businesses into its operations, or 
expand into new markets.  Once integrated, acquired businesses may not 
achieve comparable levels of revenues, profitability, or productivity as the 
existing business of the Company or otherwise perform as expected.

LIQUIDITY AND CAPITAL RESOURCES

Net cash used for operating activities in the first quarter of Fiscal 1998 
was $8.3 million, compared to net cash used for operating activities of $3.7 
million in the first quarter of Fiscal 1997. Increases in accounts receivable 
and inventory and decreases in other accrued liabilities during the first 
quarter of 1998 resulted in the unfavorable cash flow from operations.  
Accounts receivable increased due to the timing of shipments as a higher 
percentage of the quarter's shipments occurred in the last month of the 
quarter.  Inventories increased primarily as a result of increases in 
inventory purchases in anticipation of a higher volume of shipments.  Other 
accrued liabilities decreased primarily due to a decrease in customer 
deposits.

In May 1997, the Company completed the acquisition of Granger, Inc. for total 
consideration of $14.7 million and purchased a minority interest in Granger 
Associates, Ltd., a UK company, for $4.0 million. At June 30, 1997, other 
assets included the minority interest mentioned above and the excess of cost 
over net assets acquired (goodwill), net of accumulated amortization of $10.8 
million related to the acquisition of Granger, Inc.  Other changes to cash 
from investing activities during the first quarter of  Fiscal 1998 included 
the sale of some short-term investments to fund operations and an increase in 
property plant and equipment of $2.8 million primarily due to purchases of 
additional test equipment as a result of the higher sales volume and 
purchases of equipment for the increased headcount.


                                                                            12
<PAGE>

At June 30, 1997, the Company's principal sources of liquidity
consisted of $27.0 million in cash and cash equivalents and short-term
investments and a revolving bank credit facility that provides up to
$20.0 million in credit, of which $19.8 million was available.  This
credit facility expires in June 1998.

The Company's lines of credit requires the Company to meet certain
financial covenants, including minimum liquidity, tangible net worth
and profitability requirements.  As of June 30, 1997, the Company was
in compliance with the covenants.

The Company believes that the liquidity provided by existing cash
balances, anticipated future cash flows from operations, and the
Company's existing borrowing arrangements will be sufficient to meet
both working capital and capital expenditure requirements through
Fiscal 1998.


                                                                            13
<PAGE>

PART II - OTHER INFORMATION


ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K

(a)  Exhibits

     For a list of exhibits to this Form 10-Q, see the exhibit index located on
     page 15.

(b)  Reports on Form 8-K

     The Company did not file any reports on Form 8-K during the three-month
     period ended June 30, 1997.


                                                                            14
<PAGE>


                                 EXHIBIT INDEX

EXHIBIT
NUMBER        DESCRIPTION

3.1      Restated Certificate of Incorporation (incorporated by reference to
         Exhibit 3.1 to the Company's Registration Statement on Form S-1 (File
         No. 33-13431)).

3.2      Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2
         to the Company's Annual Report on Form 10-K for the year ended March 
         31, 1993).

4.1      Form of Common Stock Certificate (incorporated by reference to Exhibit
         4.1 to the Companys Annual Report on Form 10-K for the year ended March
         31, 1988).

4.2      Rights Agreement dated as of October 24, 1991, between the Company and
         Manufacturers Hanover Trust Company of California, including the 
         Certificate of Designations for the Series A Junior Participating
         Preferred Stock (incorporated by reference to Exhibit 1 of the 
         Company's Current Report on 8-K filed on November 5, 1991).

10.1     Credit Agreement dated as of June 30, 1997, by and between Digital
         Microwave Corporation and Bank of America National Trust and Savings 
         Association.

10.2     Lease, dated April 5, 1995, by and between Metropolitan Life Insurance
         Company and Digital Microwave Corporation, relating to 180 Rose Orchard
         Way, San Jose, California.

11.1     Statement Re: Computation of per share earnings.

27.1     Financial data schedule.


                                                                            15
<PAGE>








                                   SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.



                                       DIGITAL MICROWAVE CORPORATION





Date:  August 8, 1997                  By  /s/  CARL A. THOMSEN
                                         -----------------------------   
                                               Carl A. Thomsen
                           Vice President, Chief Financial Officer and Secretary


                                                                            16