WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.

<TABLE> <S> <C>



                                                                      EXHIBIT 27

<ARTICLE>                                                                5
<LEGEND>
THIS  SCHEDULE  CONTAINS  SUMMARY  FINANCIAL   INFORMATION  EXTRACTED  FROM  THE
REGISTRANT'S  UNAUDITED  BALANCE  SHEET  AS OF MAY 31,  1998  AND THE  UNAUDITED
STATEMENTS OF OPERATIONS  AND STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS THEN
ENDED  AND  IS  QUALIFIED  IN  ITS  ENTIRETY  BY  REFERENCE  TO  SUCH  FINANCIAL
STATEMENTS.
</LEGEND> 
<CIK>                                                           0000835585
<NAME>                                                 C-Phone Corporation
<MULTIPLIER>                                                             1
       
<S>                                                                    <C>
<PERIOD-TYPE>                                                        3-MOS
<FISCAL-YEAR-END>                                              FEB-28-1999
<PERIOD-START>                                                 MAR-01-1998
<PERIOD-END>                                                   MAY-31-1998
<CASH>                                                           7,366,971
<SECURITIES>                                                             0
<RECEIVABLES>                                                      420,472
<ALLOWANCES>                                                     (149,858)
<INVENTORY>                                                      1,924,838
<CURRENT-ASSETS>                                                 9,642,990
<PP&E>                                                           1,136,773
<DEPRECIATION>                                                   (998,934)
<TOTAL-ASSETS>                                                   9,812,303
<CURRENT-LIABILITIES>                                              812,101
<BONDS>                                                                  0
<PREFERRED-MANDATORY>                                            1,966,960
<PREFERRED>                                                              0
<COMMON>                                                            70,582
<OTHER-SE>                                                       6,962,660
<TOTAL-LIABILITY-AND-EQUITY>                                     9,812,303
<SALES>                                                            339,150
<TOTAL-REVENUES>                                                   355,538
<CGS>                                                              508,073
<TOTAL-COSTS>                                                      516,275
<OTHER-EXPENSES>                                                         0
<LOSS-PROVISION>                                                  (79,681)
<INTEREST-EXPENSE>                                                       0
<INCOME-PRETAX>                                                (1,042,645)
<INCOME-TAX>                                                             0
<INCOME-CONTINUING>                                            (1,042,645)
<DISCONTINUED>                                                           0
<EXTRAORDINARY>                                                          0
<CHANGES>                                                                0
<NET-INCOME>                                                   (1,042,645)
<EPS-PRIMARY>                                                       (0.19)
<EPS-DILUTED>                                                       (0.19)
        

</TABLE>