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

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


                                    FORM 8-K


                                 CURRENT REPORT

                       Pursuant to Section 13 or 15(d) of
                     the Securities and Exchange Act of 1934


                Date of Report (Date of Earliest Event Reported):
                                January 25, 2000



                          COYOTE NETWORK SYSTEMS, INC.
--------------------------------------------------------------------------------
             (Exact Name of Registrant as Specified in its Charter)


        Delaware                       1-5486                   36-2448698
----------------------------    -----------------------      -------------------
(State or other jurisdiction    (Commission File Number)      (IRS Employer
      of incorporation)                                      Identification No.)



               4360 Park Terrace Drive Westlake Village, CA 91361
               --------------------------------------------------
                     Address of principal executive offices


                                  (818) 735-7600
                         ------------------------------
                         Registrant's Telephone Number,
                               Including area code

================================================================================
<PAGE>


Item 5.   Other Events

     On January 26, 2000, we appointed James R. McCullough as our Chief
Executive Officer to succeed James J. Fiedler. Mr. Fiedler will continue as
Chairman. Mr. McCullough also became a member of the Board of Directors on
February 2, 2000. We entered into a three-year Employment Contract with Mr.
McCullough pursuant to which he will receive a salary of $160,000 per annum and
options to purchase up to 750,000 shares of common stock at $5.00 per share,
vesting over three years, subject to acceleration if certain common stock price
targets are met and sustained.

     Mr. McCullough's principal occupation prior to joining us was as a
co-president of Renwick Corporate Finance, Inc., a consulting company from 1996
to the present. From 1994 to 1997, Mr. McCullough was the general partner of an
investment fund focusing on early stage technology companies.

     On January 25, 2000, we entered into a Financial Services Agreement
with First Venture Leasing LLC ("First Venture"), pursuant to which an LLC was
formed by First Venture to offer certain leasing and credit packages to our
customers. First Venture is an entity in which Mr. McCullough had a 25%
interest, which he relinquished effective upon his becoming a director of the
Company on February 2, 2000. The terms of our agreement with First Venture were
the result of arms' length negotiation in which Mr. McCullough did not
participate. The Agreement with First Venture was approved by our Board of
Directors.

     On January 26, 2000, we also entered into a Remarketing Agreement and two
separate License Agreements with the LLC formed by First Venture, pursuant to
which such LLC shall act as our agent in remarketing equipment leased to third
parties upon the termination of such leases and shall have the right to use
certain trademarks, service marks, trade names and other designations in
connection with the services to be provided by the LLC.

     On January 26, 2000, we also entered into a Consulting Agreement with KRJ,
LLC ("KRJ"). Pursuant to the Consulting Agreement, KRJ provided assistance in
identifying strategic partners and business opportunities, making introductions
to IP Telephony customers, introducing new management, restructuring vendor
finance programs, investor relations, and identifying credit facilities. We
issued to KRJ 2,000,000 shares of unregistered common stock, with no
registration rights. Of such shares, 1,250,000 will be held in escrow to be
released to KRJ in three equal annual installments, subject to acceleration if
certain common stock price targets are met and sustained. In addition, unless
there is a Change of Control of the Company (as defined in the Consulting
Agreement), KRJ has agreed not to sell, pledge, hypothecate or otherwise
transfer any of the 2,000,000 shares for a period 12 months after the respective
dates of delivery of any of such shares. Mr. McCullough has an approximately
one-third interest in KRJ and the balance of KRJ is owned by affiliates of First
Venture. The Consulting Agreement also provides that over the next three years,
KRJ will provide assistance in further identification of additional business
opportunities both in the domestic and international markets. Compensation for
these additional services will be specifically negotiated at a future date. The
Consulting Agreement has been approved by our Board of Directors and the terms
of our agreement with KRJ were the result of arms' length negotiation in which
Mr. McCullough did not participate. In connection with the issuance of the
2,000,000 shares to KRJ, we anticipate recording a one-time, non-cash charge to
earnings of approximately $10 million in the fourth quarter of Fiscal 2000.


<PAGE>


Item 7.   Financials Statements and Exhibits

(c)       Exhibits

10.1      Employment Agreement by and between Coyote Network Systems, Inc. and
          James R. McCullough.

10.2      Consulting Agreement by and between Coyote Network Systems, Inc. and
          KRJ, LLC.

10.3      Financial Services Agreement by and among Coyote Network Systems,
          Inc., Coyote Technologies, LLC, First Venture Leasing, LLC and Coyote
          Leasing, LLC.

10.4      Master Remarketing Agreement by and among Coyote Network Systems,
          Inc., Coyote Technologies, LLC and Coyote Leasing, LLC

10.5      Coyote Technologies License Agreement by and between Coyote
          Technologies, LLC and Coyote Leasing, LLC.

10.6      Coyote License Agreement by and between Coyote Network Systems, Inc.
          and Coyote Leasing, LLC.


<PAGE>

                                   SIGNATURES


         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 hereunto duly authorized.


Dated:  February 4, 2000           COYOTE NETWORK SYSTEMS, INC.


                                   By:   /s/ Brian A. Robson
                                         -------------------------------------
                                         Brian A. Robson
                                         Executive Vice President,
                                         Chief Financial Officer and Secretary




<PAGE>


                                Index to Exhibits

Exhibit No.           Description

10.1      Employment Agreement by and between Coyote Network Systems, Inc. and
          James R. McCullough.

10.2      Consulting Agreement by and between Coyote Network Systems, Inc. and
          KRJ, LLC.

10.3      Financial Services Agreement by and among Coyote Network Systems,
          Inc., Coyote Technologies, LLC, First Venture Leasing, LLC and Coyote
          Leasing, LLC.

10.4      Master Remarketing Agreement by and among Coyote Network Systems,
          Inc., Coyote Technologies, LLC and Coyote Leasing, LLC

10.5      Coyote Technologies License Agreement by and between Coyote
          Technologies, LLC and Coyote Leasing, LLC.

10.6      Coyote License Agreement by and between Coyote Network Systems, Inc.
          and Coyote Leasing, LLC.
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================================================================================

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

                                    FORM 8-K

                                 CURRENT REPORT

                       Pursuant to Section 13 or 15(d) of
                     the Securities and Exchange Act of 1934

                Date of Report (Date of Earliest Event Reported):
                                January 25, 2000

                          COYOTE NETWORK SYSTEMS, INC.
--------------------------------------------------------------------------------
             (Exact Name of Registrant as Specified in its Charter)

        Delaware                       1-5486                   36-2448698
----------------------------    -----------------------      -------------------
(State or other jurisdiction    (Commission File Number)      (IRS Employer
      of incorporation)                                      Identification No.)

               4360 Park Terrace Drive Westlake Village, CA 91361
               --------------------------------------------------
                     Address of principal executive offices

                                  (818) 735-7600
                         ------------------------------
                         Registrant's Telephone Number,
                               Including area code

================================================================================
Item 5.   Other Events

     On January 26, 2000, we appointed James R. McCullough as our Chief
Executive Officer to succeed James J. Fiedler. Mr. Fiedler will continue as
Chairman. Mr. McCullough also became a member of the Board of Directors on
February 2, 2000. We entered into a three-year Employment Contract with Mr.
McCullough pursuant to which he will receive a salary of $160,000 per annum and
options to purchase up to 750,000 shares of common stock at $5.00 per share,
vesting over three years, subject to acceleration if certain common stock price
targets are met and sustained.

     Mr. McCullough's principal occupation prior to joining us was as a
co-president of Renwick Corporate Finance, Inc., a consulting company from 1996
to the present. From 1994 to 1997, Mr. McCullough was the general partner of an
investment fund focusing on early stage technology companies.

     On January 25, 2000, we entered into a Financial Services Agreement
with First Venture Leasing LLC ("First Venture"), pursuant to which an LLC was
formed by First Venture to offer certain leasing and credit packages to our
customers. First Venture is an entity in which Mr. McCullough had a 25%
interest, which he relinquished effective upon his becoming a director of the
Company on February 2, 2000. The terms of our agreement with First Venture were
the result of arms' length negotiation in which Mr. McCullough did not
participate. The Agreement with First Venture was approved by our Board of
Directors.

     On January 26, 2000, we also entered into a Remarketing Agreement and two
separate License Agreements with the LLC formed by First Venture, pursuant to
which such LLC shall act as our agent in remarketing equipment leased to third
parties upon the termination of such leases and shall have the right to use
certain trademarks, service marks, trade names and other designations in
connection with the services to be provided by the LLC.

     On January 26, 2000, we also entered into a Consulting Agreement with KRJ,
LLC ("KRJ"). Pursuant to the Consulting Agreement, KRJ provided assistance in
identifying strategic partners and business opportunities, making introductions
to IP Telephony customers, introducing new management, restructuring vendor
finance programs, investor relations, and identifying credit facilities. We
issued to KRJ 2,000,000 shares of unregistered common stock, with no
registration rights. Of such shares, 1,250,000 will be held in escrow to be
released to KRJ in three equal annual installments, subject to acceleration if
certain common stock price targets are met and sustained. In addition, unless
there is a Change of Control of the Company (as defined in the Consulting
Agreement), KRJ has agreed not to sell, pledge, hypothecate or otherwise
transfer any of the 2,000,000 shares for a period 12 months after the respective
dates of delivery of any of such shares. Mr. McCullough has an approximately
one-third interest in KRJ and the balance of KRJ is owned by affiliates of First
Venture. The Consulting Agreement also provides that over the next three years,
KRJ will provide assistance in further identification of additional business
opportunities both in the domestic and international markets. Compensation for
these additional services will be specifically negotiated at a future date. The
Consulting Agreement has been approved by our Board of Directors and the terms
of our agreement with KRJ were the result of arms' length negotiation in which
Mr. McCullough did not participate. In connection with the issuance of the
2,000,000 shares to KRJ, we anticipate recording a one-time, non-cash charge to
earnings of approximately $10 million in the fourth quarter of Fiscal 2000.
Item 7.   Financials Statements and Exhibits

(c)       Exhibits

10.1      Employment Agreement by and between Coyote Network Systems, Inc. and
          James R. McCullough.

10.2      Consulting Agreement by and between Coyote Network Systems, Inc. and
          KRJ, LLC.

10.3      Financial Services Agreement by and among Coyote Network Systems,
          Inc., Coyote Technologies, LLC, First Venture Leasing, LLC and Coyote
          Leasing, LLC.

10.4      Master Remarketing Agreement by and among Coyote Network Systems,
          Inc., Coyote Technologies, LLC and Coyote Leasing, LLC

10.5      Coyote Technologies License Agreement by and between Coyote
          Technologies, LLC and Coyote Leasing, LLC.

10.6      Coyote License Agreement by and between Coyote Network Systems, Inc.
          and Coyote Leasing, LLC.
SIGNATURES

         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 hereunto duly authorized.

Dated:  February 4, 2000           COYOTE NETWORK SYSTEMS, INC.

                                   By:   /s/ Brian A. Robson
                                         -------------------------------------
                                         Brian A. Robson
                                         Executive Vice President,
                                         Chief Financial Officer and Secretary
Index to Exhibits

Exhibit No.           Description

10.1      Employment Agreement by and between Coyote Network Systems, Inc. and
          James R. McCullough.

10.2      Consulting Agreement by and between Coyote Network Systems, Inc. and
          KRJ, LLC.

10.3      Financial Services Agreement by and among Coyote Network Systems,
          Inc., Coyote Technologies, LLC, First Venture Leasing, LLC and Coyote
          Leasing, LLC.

10.4      Master Remarketing Agreement by and among Coyote Network Systems,
          Inc., Coyote Technologies, LLC and Coyote Leasing, LLC

10.5      Coyote Technologies License Agreement by and between Coyote
          Technologies, LLC and Coyote Leasing, LLC.

10.6      Coyote License Agreement by and between Coyote Network Systems, Inc.
          and Coyote Leasing, LLC.