<TABLE> <S> <C>


<ARTICLE>                     5
<LEGEND>
THIS  SCHEDULE  CONTAINS  SUMMARY  FINANCIAL   INFORMATION  EXTRACTED  FROM  THE
INTER-TEL,  INCORPORATED AND SUBSIDIARIES  FINANCIAL  STATEMENTS FOR THE QUARTER
ENDED MARCH 31, 1998 AND IS  QUALIFIED  IN ITS  ENTIRETY  BY  REFERENCE  TO SUCH
FINANCIAL STATEMENTS
</LEGEND>
<MULTIPLIER>                  1,000
<CURRENCY>                    U.S. Dollar
       
<S>                             <C>
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                                                    DEC-31-1998
<PERIOD-START>                                                       JAN-01-1998
<PERIOD-END>                                                         MAR-31-1998
<EXCHANGE-RATE>                                                                1
<CASH>                                                                     90977
<SECURITIES>                                                                   0
<RECEIVABLES>                                                              36427
<ALLOWANCES>                                                                3793
<INVENTORY>                                                                20428
<CURRENT-ASSETS>                                                          160115
<PP&E>                                                                     41249
<DEPRECIATION>                                                             20052
<TOTAL-ASSETS>                                                            201121
<CURRENT-LIABILITIES>                                                      33575
<BONDS>                                                                        0
<PREFERRED-MANDATORY>                                                          0
<PREFERRED>                                                                    0
<COMMON>                                                                   99685
<OTHER-SE>                                                                 51005
<TOTAL-LIABILITY-AND-EQUITY>                                              201121
<SALES>                                                                    63758
<TOTAL-REVENUES>                                                           63758
<CGS>                                                                      32617
<TOTAL-COSTS>                                                              22965
<OTHER-EXPENSES>                                                               0
<LOSS-PROVISION>                                                            1030
<INTEREST-EXPENSE>                                                             9
<INCOME-PRETAX>                                                             9136
<INCOME-TAX>                                                                3774
<INCOME-CONTINUING>                                                         5362
<DISCONTINUED>                                                                 0
<EXTRAORDINARY>                                                                0
<CHANGES>                                                                      0
<NET-INCOME>                                                                5362
<EPS-PRIMARY>                                                                .20
<EPS-DILUTED>                                                                .19
        

</TABLE>