UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              Washington, DC 20549
                                  SCHEDULE 13G
                    Under the Securities Exchange Act of 1934
                          (Amendment No. __________ ) *



                                 Data Race, Inc.
 ______________________________________________________________________________
                                (Name of Issuer)


                                  Common Stock
 ______________________________________________________________________________
                         (Title of Class of Securities)


                                    237842109
                        _________________________________
                                 (CUSIP Number)



* The remainder of this cover page shall be filled out for a reporting  person's
initial filing on this form with respect to the subject class of securities, and
for any  subsequent  amendment  containing  information  which  would  alter the
disclosures provided in a prior cover page.

The information required in the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the  Securities  Exchange  Act of
1934 ("Act") or otherwise  subject to the liabilities of that section of the Act
but  shall be  subject  to all other  provisions  of the Act  (however,  see the
Notes).





















                                      




CUSIP No.  237842109                  13G                     Page 2 of 5 Pages

 
______________________________________________________________________________
1)       Names of Reporting Persons
         SS or IRS Identification                 Capital Southwest Corporation
         Number of Above Persons:                 75-1072796
______________________________________________________________________________
2)       Check the Appropriate Box               (a)
         if a Member of a Group:                 (b)
         (See Instructions)                      Not Applicable
______________________________________________________________________________
3)       SEC Use Only


______________________________________________________________________________
4)       Citizenship or Place of
         Organization:
                                                 United States
______________________________________________________________________________
5)       Number of Shares            5) Sole Voting Power:      211,612
         Beneficially Owned          6) Shared Voting Power:     99,845
         by Each Reporting           7) Sole Dispositive Power: 211,612
         Person With:                8) Shared Dispositive Power:99,845
______________________________________________________________________________
9)       Aggregate Amount
         Beneficially Owned by
         Each Reporting Person:                                 311,457
______________________________________________________________________________
10)      Check if the Aggregate Amount
         in Row (9) Excludes Certain Shares:
         (See Instructions)                                     Not applicable.
______________________________________________________________________________
11)      Percent of Class Represented by
         Amount in Row 9:                                       6.4%
 
______________________________________________________________________________
12)      Type of Reporting Person:
         (See Instructions)                                     CO
______________________________________________________________________________

















                                       



CUSIP No.  237842109                  13G                     Page 3 of 5 Pages


                                   Item 1(a).

          Name of Issuer:           Data Race, Inc.

                                   Item 1(b).

          Address of Issuer's Principal Executive Offices:

                   12400 Network Blvd., San Antonio, TX 78249

                                   Item 2(a).

          Name of Person Filing:    Capital Southwest Corporation

                                   Item 2(b).

          Address of Principal Business Office or, if None, Residence:

                 12900 Preston Road, Suite 700, Dallas, TX 75230

                                   Item 2(c).

          Citizenship:                       United States

                                   Item 2(d).

          Title of Class of Securities:      Common Stock

                                   Item 2(e).

          CUSIP No.:                         237842109

                                     Item 3.

          If this  statement is filed  pursuant to Rule  13d-1(b),  or 13d-2(b),
          check whether the person filing is a:

          (a)  [ ] Broker or Dealer registered under Section 15 of the Act

          (b)  [ ] Bank as defined in Section 3(a)(6) of the Act

          (c)  [ ] Insurance Company as defined in Section 3(a)(19) of the Act

          (d)  [  ]  Investment  Company  registered  under  Section  8  of  the
               Investment Company Act

          (e)  [ ]  Investment  Advisor  registered  under  Section  203  of the
               Investment Advisers Act of 1940

          (f)  [ ] Employee  Benefit Plan,  Pension Fund which is subject to the
               provisions of the Employee Retirement Income Security Act of 1974
               or Endowment Fund; see 240.13d-1(b)(1)(ii)(F)

          (g)  [   ]   Parent    Holding    Company,    in    accordance    with
               240.13d-1(b)(1)(ii)(G) (Note: See Item 7)

          (h)  [ ] Group, in accordance with 240.13d-1(b)(1)(ii)(H)







  CUSIP No. 237842109                 13G                     Page 4 of 5 Pages



                                     Item 4.

Ownership.

     If the percent of the class owned, as of December 31 of the year covered by
the statement, or as of the last day of any month described in Rule 13d-1(b)(2),
if  applicable,  exceeds five percent,  provide the following  information as of
that date and identify those shares which there is a right to acquire.

     (a)  Amount Beneficially Owned:                                    311,457

     (b)  Percent  of Class:                                                6.4%
     (c)  Number of shares as to which such person  has: 

         (i)  sole power to vote or to direct the vote:                 211,612
         (ii) shared power to vote or to direct the vote:                99,845
         (iii)sole power to dispose or to direct the disposition of:    211,612
         (iv) shared power to dispose or to direct the disposition of:   99,845


                                     Item 5.

     Ownership of Five Percent or Less of a Class.

     If this  statement  is being  filed to report  the fact that as of the date
hereof the reporting  person has ceased to be the beneficial  owner of more than
five percent of the class of securities, check the following [ ].

              Not applicable.

                                     Item 6.

     Ownership of More than Five Percent on Behalf of Another Person.

              Not applicable.

                                     Item 7.

     Identification  and  Classification  of the  Subsidiary  Which Acquired the
Security Being Reported on By the Parent Holding Company.

              Not applicable.

                                     Item 8.

     Identification and Classification of Members of the Group.

              Not applicable.

                                     Item 9.

     Notice of Dissolution of Group.

              Not applicable.





CUSIP No.   237842109                 13G                     Page 5 of 5 Pages



                                    Item 10.

     Certification and Signature.

     After  reasonable  inquiry and to the best of my  knowledge  and belief,  I
certify that the information  set forth in this statement is true,  complete and
correct.



                                                      February 7, 1997
                                                      ________________________
                                                      Date

                                                      /s/ Patrick F. Hamner
                                                      ________________________
                                                      Signature
 
                                                      Patrick F. Hamner
                                                      Vice President
                                                      ________________________
                                                      Name and Title

 


                          Capital Southwest Corporation
                          12900 Preston Road, Suite 700
                                Dallas, TX 75230

(972) 233-8242  Telephone                                    Fax (972) 233-7362



                                February 7, 1997


Securities and Exchange Commission
450 5th Street, N.W.
Judiciary Plaza
Washington, DC  20549

Gentlemen:

Pursuant to regulations of the Securities and Exchange Commission, submitted for
filing on behalf of Capital  Southwest  Corporation  is  Schedule  13-G for Data
Race, Inc.

This filing is being effected by direct  transmission to the Commission's  EDGAR
System.

                                                     Sincerely,

                                                     /s/ Susan Patterson
 
                                                     Susan Patterson
                                                     Controller