================================================================================

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                       ----------------------------------

                                   FORM 10-K/A
                                (Amendment No. 1)

                       ----------------------------------

[X]  Annual Report Pursuant to Section 13 or 15 (d) of the Securities Exchange
     Act of 1934 For the fiscal year ended  March 31, 1999


[ ]  Transition Report Pursuant to Section 13 or 15 (d) of the Securities
     Exchange Act of 1934 For the transition period from _________ to _________

     Commission file number   1-5486

                          COYOTE NETWORK SYSTEMS, INC.

             Delaware                                   36-2448698
 --------------------------------           -----------------------------------
  (State or other jurisdiction of           (I.R.S. Employer Identification No.)
  incorporation or organization)

4360 Park Terrace Drive, Westlake Village, California               91361
------------------------------------------------------         ----------------
       (Address of principal executive offices)                   (Zip Code)

Registrant's telephone number, including area code:            (818) 735-7600

Securities registered pursuant to Section 12 (b) of the Act:   None

Securities registered pursuant to Section 12 (g) of the Act:   Common Stock,
                                                                 $1.00 par value

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.                               [X] YES [ ] NO

Indicate by check mark if disclosure of delinquent  filers  pursuant to Item 405
of Regulation  S-K is not contained  herein,  and will not be contained,  to the
best  of  the  Registrant's   knowledge,  in  definitive  proxy  or  information
statements  incorporated  by  reference  in Part  III of this  Form  10-K or any
amendment to this Form 10-K.                                                [ ]

On July  12,  1999,  the  aggregate  market  value  of the  voting  stock of the
Registrant  held by  stockholders  who were not affiliates of the Registrant was
$58,353,000 based on the closing sale price of $5.00 of the Registrant's  common
stock on The Nasdaq National Stock Market.  At July 12, 1999, the Registrant had
issued and  outstanding  an aggregate of 12,702,350  shares of its common stock.
For purposes of this  Report,  the number of shares held by  non-affiliates  was
determined by aggregating the number of shares held by Officers and Directors of
Registrant,  and by others who, to Registrant's knowledge,  own more than 10% of
Registrant's common stock, and subtracting those shares from the total number of
shares outstanding.

                   DOCUMENTS INCORPORATED BY REFERENCE - NONE.

      The Registrant hereby amends the Form 10-K for the fiscal year ended
       March 31, 1999, filed on July 14, 1999, to include the information
      required by Part III pursuant to Form 10-K General Instruction G(3).
<PAGE>
================================================================================
                                    PART III.
================================================================================

--------------------------------------------------------------------------------
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE COMPANY
--------------------------------------------------------------------------------

Identification of Directors
----------------------------------------------

The Board of Directors is divided into three classes of directors  consisting of
three classes of two members each or six members in the aggregate.  The election
of  directors  is  staggered  so that the term of only  one  class of  directors
expires each year. Generally,  the term of each class is three years. Currently,
the Board of Directors has two vacant positions. The Board of Directors consists
of the following members:


                      Directors with Terms Expiring in 1999
                      -------------------------------------

Jack E.  Donnelly,  age 64, has been a director  of the Company  since  November
1991. Since 1986, he has been a principal of Bailey & Donnelly Associates, Inc.,
an investment company.

Daniel W.  Latham,  age 51, has been a director  of the Company  since  November
1996.  He has been  President and Chief  Operating  Officer of the Company since
November 1996 and President of Coyote Technologies,  LLC ("CTL") since September
1995.  Prior to his  association  with CTL,  Mr.  Latham  was the  President  of
Frontier Communications Long Distance Company.

                      Directors with Terms Expiring in 2000
                      -------------------------------------

James J. Fiedler,  age 52, has been a director of the Company since August 1996.
He has been Chairman and Chief  Executive  Officer of the Company since November
1996 and  Chairman  and Chief  Executive  Officer of CTL since  September  1995.
Previously,  Mr.  Fiedler was a principal  in the  consulting  firm of Johnson &
Fiedler. From November 1992 to September 1994, Mr. Fiedler was Vice President of
Sales and Marketing and subsequently President and Director of Summa Four, Inc.,
a telecom  switching  company.  From June 1989 to July  1992,  Mr.  Fiedler  was
Executive Vice President and Chief Operating  Officer of Timeplex,  a subsidiary
of  Unisys  Corporation,  engaged  in the  business  of  manufacturing  data and
telecommunications  equipment.  Prior to June 1989,  Mr.  Fiedler held executive
positions with Unisys Corporation and Sperry Corporation  (subsequently acquired
by Unisys  Corporation).  He has been a  director  of Entree  Corporation  since
November 1996.

Stephen W.  Portner,  age 47, has been a director  of the Company  since  August
1997. He has been the Managing Director of European Projects for JMJ Associates,
a global management  consulting company, and has served in various capacities at
JMJ Associates  from January 1994 to the present.  From December 1991 to January
1994,  Mr.  Portner  held  positions  in plant and  project  management  and was
Director  of Quality  at Air  Products  Incorporated,  an  industrial  chemicals
company.

Identification of Executive Officers
----------------------------------------------

The following individuals are the executive officers of the Company:

           Name            Age              Position
      James J. Fiedler      52      Chief Executive Officer
      Daniel W. Latham      51      President and Chief Operating Officer
      Brian A. Robson       62      Executive Vice President,
                                          Chief Financial Officer and Secretary

                                       1
<PAGE>
The following  information is furnished  with respect to each executive  officer
who is not also a director of the Company:

Mr. Robson has been the Executive Vice President,  Chief  Financial  Officer and
Secretary  since December 15, 1998. Mr. Robson was Vice President of Finance and
Chief Financial  Officer of Ascom Timeplex,  a  telecommunications  company from
1989-1996.

Section 16(a) Beneficial Ownership Reporting Compliance
-------------------------------------------------------------

Section 16(a) of the Securities  Exchange Act of 1934, as amended (the "Exchange
Act"), requires the Company's directors and executive officers,  and persons who
beneficially  own more than ten percent of a registered  class of the  Company's
equity  securities,  to file with the  Securities and Exchange  Commission  (the
"Commission")  initial  reports of ownership and reports of changes in ownership
of Common  Stock and the  other  equity  securities  of the  Company.  Officers,
directors,  and  persons  who  beneficially  own  more  than  ten  percent  of a
registered  class of the Company's  equities are required by the  regulations of
the  Commission  to furnish the Company  with copies of all Section  16(a) forms
they file. To the Company's  knowledge,  based solely on review of the copies of
such reports  furnished  to the Company,  during the fiscal year ended March 31,
1999,  all  Section  16(a)  filing  requirements  applicable  to  its  officers,
directors,  and greater than ten percent  beneficial  owners were complied with,
except  that  transactions  that  should  have been  reported on Forms 5 for the
fiscal years ended March 31, 1997 and/or March 31, 1998 were reported on Forms 5
for the fiscal year ended March 31, 1999 for each of Stephen W. Portner,  Sydney
B.  Lilly,  Jack E.  Donnelly,  Brian  A.  Robson  and  James  J.  Fiedler,  and
transactions  that should have been  reported on Forms 3 and 4 during the fiscal
years ended March 31, 1997 and March 31, 1998 for Alan J. Andreini were reported
on Form 5 for the fiscal year ended March 31, 1999. In addition, the Form 3 that
should  have been filed by Alan J.  Andreini  during the fiscal year ended March
31, 1997 was filed on April 5, 1999.









                                       2
<PAGE>
--------------------------------------------------------------------------------
ITEM 11. EXECUTIVE COMPENSATION
--------------------------------------------------------------------------------

All  shares  and per share  numbers  included  herein  have  been  retroactively
adjusted  to give  effect to a 5% stock  dividend  which was paid on November 4,
1998 to holders of record as of October 21, 1998.

The following table sets forth, for the three fiscal years ended March 31, 1999,
the total annual compensation paid to, or accrued by the Company for the account
of,  James J.  Fiedler,  Daniel  W.  Latham  and  Brian A.  Robson  (the  "Named
Executives") serving as such at March 31, 1999 and one former executive officer:


<TABLE>
<CAPTION>
                                                      SUMMARY COMPENSATION TABLE
-------------------------------------------------------------------------------------------------------------------------------
                                             Annual Compensation                   Long-Term Compensation
                                     ----------------------------------- ---------------------------------------
                                                             Other       Restricted  Securities      Long-term         All
            Name and                                         Annual          Stock    Underlying  Incentive Plan      Other
       Principal Position     Year    Salary    Bonus    Compensation(5)   Award(s)    Options       Layouts       Compensation
       ------------------     ----   --------  -------   ---------------   --------   -----------   -----------    ------------
<S>                           <C>    <C>       <C>         <C>               <C>       <C>             <C>         <C>
James J. Fiedler (1)          1999   $300,000  $ 9,335     $ 20,000          ---       94,500 (6)      ---         $  7,200 (8)
   Chairman, CEO              1998   $200,000  $19,746     $ 15,000          ---         ---           ---         $  7,200 (8)
   and Director               1997   $200,000    ---       $  3,720          ---         ---           ---            ---

Daniel W. Latham (2)          1999   $300,000  $ 9,335     $ 20,000          ---       94,500 (6)      ---         $  7,200 (8)
   President, COO             1998   $175,000  $19,746     $ 15,000          ---         ---           ---         $  7,200 (8)
   and Director               1997   $175,000    ---       $  3,750          ---         ---           ---         $170,197 (9)

Brian A. Robson (3)           1999   $152,487  $12,875        ---            ---       98,750 (7)      ---            ---
  Executive Vice President    1998   $139,907    ---          ---            ---        2,000          ---         $ 21,921 (10)
  CFO and Secretary           1997   $ 56,250    ---          ---            ---       10,500          ---         $ 13,041 (10)

Edward Beeman (4)             1999   $ 79,526    ---          ---            ---         ---           ---         $ 53,548 (11)


<FN>
(1)  On  November  29,  1996,  Mr.  Fiedler  was  appointed  Chairman  and Chief
     Executive Officer of the Company. Mr. Fiedler also remained as Chairman and
     Chief Executive Officer of CTL (see Employment Agreements).

(2)  On  November  29,  1996,  Mr.  Latham  was  appointed  President  and Chief
     Operating Officer of the Company.  Mr. Latham also remained as President of
     CTL (see Employment Agreements).

(3)  On October 31, 1996, Mr. Robson was appointed Vice President and Controller
     of the Company.  On December 15, 1998,  Mr. Robson was appointed  Executive
     Vice President, Chief Financial Officer and Secretary of the Company.



                                       3
<PAGE>
(4)  On June 1, 1998, Mr. Beeman was appointed  Executive Vice President,  Chief
     Financial  Officer and  Secretary of the  Company.  In November  1998,  Mr.
     Beeman's employment with the Company was terminated.

(5)  Director's fees paid to officers.

(6)  Pursuant to their employment agreements,  on April 1, 1998, Messrs. Fiedler
     and Latham were granted stock options to purchase a total of 450,000 shares
     of the  Company's  common  stock  over a period of five  years,  to vest in
     increments of 90,000 shares  annually,  at various exercise prices for each
     90,000 share  increment.  As adjusted for the stock  dividend,  each 90,000
     share  increment  has been  adjusted to a 94,500 share  increment,  and the
     exercise price of each of the five 94,500 share increments is $3.81, $7.62,
     $11.43, $15.24 and $19.05, respectively.

(7)  Stock  options to purchase  13,125  shares of common  stock were granted on
     June 1, 1997 at $2.86 per share;  8,750 of these options are exercisable as
     of June 1, 1999.  Stock  options to purchase  13,125 shares of common stock
     were granted on June 1, 1998 at $3.90 per share; 4,375 of these options are
     exercisable as of June 1, 1999.  Stock options to purchase 85,000 shares of
     common stock were  granted on December  11, 1998 at $6.56 per share;  these
     options are not currently exercisable.

(8)  Represents automobile allowance.

(9)  Represents  relocation  assistance  and $98,000 paid to Mr. Latham to cover
     his loss on a personal  residence and related real estate  commissions  and
     selling expenses.

(10) Represents relocation assistance paid by the Company.

(11) Represents  automobile  allowance  and  relocation  assistance  paid by the
     Company.
</FN>
</TABLE>

The table below provides information  regarding stock options granted during the
fiscal year ended March 31, 1999 to the Named Executives:

<TABLE>
<CAPTION>
                                             OPTIONS GRANTED IN LAST FISCAL YEAR

                                                        Individual Grants
                    --------------------------------------------------------------------------------------
                       Number of     % of Total                                 Potential Realizable Value
                        Shares       Options Granted                            at Assumed Annual Rate of
                      Underlying      to Employees    Exercise   Expiration     Stock Price Appreciation
                   Options Granted    in Fiscal Year    Price       Date           for Option Term(3)
                                                                                     5%          10%
                                                                                     --          ---
<S>                     <C>                <C>         <C>        <C>            <C>          <C>
James J. Fiedler        94,500             9.3%        $3.81      04/01/08       $226,430     $573,819
Daniel W. Latham        94,500             9.3%        $3.81      04/01/08       $226,430     $573,819
Brian A. Robson         13,125 (1)         1.3%        $3.90      06/01/03       $ 14,142     $ 31,250
                        85,000 (2)         8.3%        $6.56      12/11/03       $154,055     $340,420

<FN>
(1) These options vest annually in one-third increments commencing June 1, 1999.

(2) These options vest annually in one-third increments  commencing December 11,
1999.

(3)    The dollar amounts under these columns are the results of calculations at
       the 5% and 10% rates set by the Securities and Exchange  Commission.  The
       potential  realizable values are not intended to forecast possible future
       appreciation, if any, in the market price of the common stock.
</FN>
</TABLE>

                                       4
<PAGE>
Aggregated Option Exercises During the Fiscal Year
Ended March 31, 1999 and Fiscal Year End Option Values
-------------------------------------------------------------

The table below  provides  information  regarding the value of the  in-the-money
stock  options  held by the  Named  Executives  at March  31,  1999.  The  Named
Executives did not exercise any stock options during the fiscal year.

<TABLE>
<CAPTION>
                    Number of Unexercised      Value of Unexercised In-the-Money
                  Options at March 31, 1999       Options at March 31, 1999(1)
                 -------------------------    ---------------------------------
                  Exercisable  Unexercisable    Exercisable       Unexercisable

<S>                  <C>        <C>               <C>              <C>
James J. Fiedler      ---        94,500             ---            $195,615
Daniel W. Latham      ---        94,500             ---            $195,615
Brian A. Robson      4,375      106,875           $13,212          $ 52,412
<FN>
(1)  Value based on the closing price of $5.88 of the common stock on The Nasdaq
     National Market on March 31, 1999, less the option exercise price.
</FN>
</TABLE>

Stock Option Plans
--------------------------------------------------------------

On  December  11,  1986,  the Board of  Directors  adopted  the  Company's  1986
Non-Qualified  Stock Option Plan (the "1986  Plan").  The 1986 Plan, as amended,
provides  for the grant of options to  purchase  up to 832,963  shares of Common
Stock to executive officers, key officers, employees,  directors and consultants
of the Company and its  subsidiaries.  In February  1998, the Board of Directors
adopted the Company's  Non-Employee  Director  Stock Option Plan (the  "Director
Plan").  The Director  Plan  provides for the grant of options to purchase up to
157,500  shares of Common Stock to  non-employee  directors  of the Company.  In
March 1996,  the Board of Directors  adopted the Employees  Non-Qualified  Stock
Option  Plan of CTL (the "CTL  Plan").  The CTL Plan  provides  for the grant of
options  to  purchase  up to  2,100,000  shares  of  Common  Stock to  executive
officers, key employees, directors, consultants and advisors of the Company, its
affiliates and subsidiaries.

As of March 31, 1999,  options to purchase 592,463,  63,000 and 1,178,074 shares
of Common Stock have been granted under the 1986 Plan, the Director Plan and the
CTL Plan,  respectively.  As of March 31, 1999, 442,956, 0 and 105,713 shares of
Common Stock have been issued pursuant to the exercise of options under the 1986
Plan, the Director Plan and the CTL Plan, respectively.  Any unexercised options
that expire or terminate upon a director's  resignation or an employee's ceasing
to be employed by the Company,  its affiliates or subsidiaries  become available
again for issuance  under the 1986 Plan,  the Director  Plan or the CTL Plan, as
the case may be.

In April 1998,  stock options to purchase 10,500 shares of the Company's  common
stock were granted to each of the non-employee members of the Board of Directors
pursuant to the Director Plan. These options have an exercise price of $3.42 per
share.


                                       5
<PAGE>

Employment Agreements
------------------------------------------------

On April 1, 1998, the Company  entered into employment  agreements,  expiring on
March 31,  2003,  with Mr.  Fiedler  and Mr.  Latham.  Pursuant to each of their
employment agreements, Messrs. Fiedler and Latham (the "Executive") will receive
a  guaranteed  minimum  annual  salary  of  $300,000  or an  amount  based  on a
percentage of the Company's pre-tax income,  whichever is greater;  however, the
Executive's  annual  salary shall not exceed $4.5 million.  The Executive  shall
also  receive  deferred  compensation  for five years  following  his  five-year
employment term (the  "Employment  Term") based on a percentage of the Company's
pre-tax  income  during  each year of the  Employment  Term;  however,  deferred
compensation shall not exceed $600,000 per year. The employment  agreements also
provide  that the  Executive  will not  compete  with the  Company  for one year
following the termination of his employment.

Compensation of Directors
--------------------------------------------------------------------

Directors receive an annual fee of $15,000,  paid on a monthly basis.  Directors
are also reimbursed for travel expenses.  In addition,  directors  receive up to
$1,250 per day for each  meeting  attended  (board or  committee).  Non-employee
directors  (including  retired  directors as  determined  by the Board)  receive
supplemental  medical  reimbursement  to pay all medical  expenses  for them and
their immediate  families (spouses and unemancipated  children) up to a limit of
$25,000 per year.

Report on Repricing of Options
-------------------------------------------------------------------

The  Company  did not  adjust  or amend  the  exercise  price  of stock  options
previously  awarded to the Named  Executives  during the fiscal year ended March
31, 1999,  except to reflect the 5% stock dividend issued on November 4, 1998 to
stockholders of record as of October 21, 1998.

Compensation Committee Interlocks and Insider Participation
-------------------------------------------------------------------

The Board of Directors does not have a compensation  committee because executive
compensation decisions are made by the full Board.  Recommendations on executive
compensation  with regard to Messrs.  Fiedler and Latham are made by the outside
non-employee  directors when requested to do so by the full Board. All directors
participate in the deliberations.

Mr. Fiedler is the Company's Chairman and Chief Executive Officer. Mr. Latham is
the  Company's  President and Chief  Operating  Officer.  Messrs.  Fiedler's and
Latham's  fiscal 1999  compensation  and employment  contracts  were  previously
described above.


                                       6
<PAGE>

--------------------------------------------------------------------------------
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
--------------------------------------------------------------------------------

The following table sets forth certain information as of July 12, 1999 regarding
the beneficial  ownership of the Company's Common Stock by (a) each person known
by the Company to own  beneficially  more than 5% of the Company's Common Stock,
(b) each director and officer of the Company,  including Messrs. Fiedler, Latham
and Robson,  and (c) all directors  and  executive  officers of the Company as a
group.  Except as otherwise  indicated  and subject to community  property  laws
where  applicable,  the  persons  named in the table  below have sole voting and
dispositive  power  with  respect  to  the  shares  of  Common  Stock  shown  as
beneficially  owned by them.  Information  as to Alan J.  Andreini and Comdisco,
Inc.  was  derived  from  the  Schedules  13G  and/or  13D  filed  by each  such
stockholder,  and for Kiskiminetas Springs School,  information was derived from
the Schedules 13D and 13G filed by Alan J.  Andreini.  Information as to Richard
L.  Haydon was derived  from the  Schedule  13D filed by Mr.  Haydon on July 28,
1997, as well as information  provided to the Company by Mr. Haydon.  Except for
the  percentage  of  ownership,  the  information  set forth below  reflects the
information  contained  in the  Schedule  13G  and/or  13D as of the  date  such
Schedule 13G or 13D was filed.
<TABLE>
<CAPTION>
                                                                    Percent of
                  Name and Address           Number of Shares      Outstanding
                of Beneficial Owner         Beneficially Owned       Shares
<S>                                           <C>                     <C>
Jack E. Donnelly (1)............................ 42,245 (2)             *
James J. Fiedler (1)............................642,288 (3)            5.0%
Daniel W. Latham (1)............................232,312 (4)            1.8 %
Stephen W. Portner (1)...........................47,250 (5)             *
Brian A. Robson (1)..............................13,125 (6)             *
Alan J. Andreini (7)..........................1,134,335 (8)            8.9%
Comdisco, Inc. (9)..............................708,390 (10)           5.5%
Richard L. Haydon (11)........................1,528,400 (12)          11.4%
Kiskiminetas Springs School (13)..............1,010,210 (14)           8.0%
All directors and executive officers of
  the Company as a group (5 persons)............977,220 (2)(3)         7.4%
                                                        (4)(5)(6)(15)
<FN>
*    Less than 1%

(1)  The address of the stockholder is: c/o Coyote Network  Systems,  Inc., 4360
     Park Terrace Drive, Westlake Village, CA 91361.

(2)  Includes  33,763  shares of Common Stock  issuable  upon  exercise of stock
     options which are currently exercisable.

(3)  Includes  94,500  shares of Common Stock  issuable  upon  exercise of stock
     options  and  183,750  shares of Common  Stock  issuable  upon  exercise of
     warrants which are currently exercisable. Includes 192,938 shares of Common
     Stock  received  by the  stockholder  upon  conversion  of Class B Units of
     Coyote Technologies,  LLC ("CTL") on June 24, 1999. Does not include 94,500
     shares  of  Common  Stock  issuable  upon  exercise  of stock  options  not
     currently exercisable.

                                       7
<PAGE>

(4)  Includes  94,500  shares of Common Stock  issuable  upon  exercise of stock
     options which are currently  exercisable.  Includes 21,000 shares of Common
     Stock received by the  stockholder  upon conversion of Class B Units of CTL
     on July 7, 1999.  Includes  95,812  shares of Common  Stock  issuable  upon
     conversion  of  additional  Class B Units of CTL.  Does not include  94,500
     shares  of  Common  Stock  issuable  upon  exercise  of stock  options  not
     currently exercisable.

(5)  Includes  26,250  shares of Common Stock  issuable  upon  exercise of stock
     options  and  10,500  shares of Common  Stock  issuable  upon  exercise  of
     warrants which are currently exercisable.

(6)  Includes  13,125  shares of Common Stock  issuable  upon  exercise of stock
     options which are  currently  exercisable.  Does not include  98,125 shares
     issuable upon exercise of stock options not currently exercisable.

(7)  The address of Alan J. Andreini is: 395 Hudson Street, New York, NY 10014.

(8)  Includes  877,710  shares of Common Stock held by Mr.  Andreini for his own
     account.  Includes  145,700  shares  held in the  account  of  Kiskiminetas
     Springs School (the "School"), 24,150 shares held in the account of John D.
     Andreini and Blanche M. Andreini (the "Parents"), 84,150 shares held in the
     account of The Andreini Foundation (the "Foundation") and 2,625 shares held
     for the benefit of Alan J. Andreini, Jr. (the "Son"), of which Mr. Andreini
     may be deemed to be the beneficial owner. Mr. Andreini disclaims beneficial
     ownership of all shares of Common Stock except those shares held by him for
     his own account.  Mr. Andreini has sole voting and  dispositive  power over
     964,485  shares  of  Common  Stock  (includes  877,710  shares  held by Mr.
     Andreini  for his own  account,  84,150  shares  held in the account of the
     Foundation and 2,625 shares held in the account of the Son).  Mr.  Andreini
     has shared voting and dispositive power over 169,850 shares of Common Stock
     (includes  145,700  shares  held in the  account  of the  School and 24,150
     shares held in the account of the Parents).

(9)  The address of Comdisco, Inc. is: 6111 N. River Road, Rosemont, IL 60018.

(10) Includes  192,990 shares of Common Stock issuable upon exercise of warrants
     which are currently exercisable.

(11) The address of Richard L. Haydon is: 1114 Avenue of the Americas, New York,
     NY 10036.

(12) Includes   872,150   shares  of  Common  Stock  held  in  various   managed
     discretionary  accounts  of  which  Mr.  Haydon  may  be  deemed  to be the
     beneficial  owner.  Includes  656,250  shares of Common Stock issuable upon
     exercise  of  warrants  which are  currently  exercisable,  held by various
     discretionary  accounts,  of  which  Mr.  Haydon  may be  deemed  to be the
     beneficial owner.  Based upon information  supplied by this stockholder (in
     addition to the information  derived from Mr. Haydon's  Schedule 13D, filed
     on July 28, 1997),  Mr. Haydon has sole voting and  dispositive  power over
     1,528,400 shares of Common Stock.

(13) The address of Kiskiminetas Springs School is: 1888 Brett Lane,  Saltsburg,
     PA 15681.

(14) According to the Schedule 13D filed on May 14, 1999,  by Alan J.  Andreini,
     the School beneficially owns 1,010,210 shares of Common Stock.

(15) Includes  262,138  shares of Common Stock  issuable  upon exercise of stock
     options  and  194,250  shares of Common  Stock  issuable  upon  exercise of
     warrants which are currently  exercisable.  Does not include 287,125 shares
     of Common  Stock  issuable  upon  exercise of stock  options not  currently
     exercisable.
</FN>
</TABLE>

                                       8
<PAGE>

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
--------------------------------------------------------------------------------

In January 1998, the Board of Directors of the Company approved an interest-free
loan to Daniel W. Latham for a maximum  amount of $500,000 to be used solely for
the purpose of providing partial down payments on his purchase of a residence in
California.  The funding is to be secured by the residential property and is for
a five-year term unless specifically extended by the Board of Directors. Earlier
repayment  of the loan  will be  demanded  in the  event of  either  (1) sale or
refinancing of the property;  (2) termination of Mr. Latham's  employment by the
Company either  voluntarily  or for cause;  or (3) sale by Mr. Latham of all, or
substantially all, of his stock in the Company.  As of March 31, 1999,  $421,000
was funded to Mr.  Latham under this  agreement.  In October  1998,  the Company
amended the terms of the loan, and in agreement  with Mr. Latham  established an
annual  interest  rate of 6.5% to be applied to the loan and which is payable at
the completion of the term.

                                       9
<PAGE>

================================================================================
                                   SIGNATURES
================================================================================


Pursuant to the requirements of Section 13 or 15 (d) 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  this 28th day of
July, 1999.


                                    COYOTE NETWORK SYSTEMS, INC.


                                    By  /s/ James J. Fiedler
                                        ---------------------------------------
                                        James J. Fiedler, Chairman of the Board
                                        and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been  signed  below by the  following  persons  on  behalf of and the in the
capacities and on the dates indicated.

       Signature                      Title                            Date

/s/ James J. Fiedler      Chairman of the Board and                July 28, 1999
-----------------------   Chief Executive Officer
James J. Fiedler          (Principal Executive Officer)


/s/ Daniel W. Latham      President, Chief Operating Officer       July 28, 1999
-----------------------   and Director
Daniel W. Latham


/s/ Brian A. Robson       Executive Vice President,                July 28, 1999
-----------------------   Chief Financial Officer and Secretary
Brian A. Robson           (Principal Financial and Accounting Officer)


/s/ Jack E. Donnelly      Director                                 July 28, 1999
-----------------------
Jack E. Donnelly


/s/ Stephen W. Portner    Director                                 July 28, 1999
-----------------------
Stephen W. Portner