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

                                  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):
                                  May 27, 1999



                          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 May 27, 1999, the Company sold, pursuant to Rule 506 under Regulation D,
1,767,000 shares of common stock at $6.00 per share in a private  placement with
new and existing domestic and  international  institutional  investors.  Sunrise
Securities Corp., the placement agent, received cash commissions of $352,000 and
commissions in the form of common stock aggregating 131,148 shares and five-year
warrants  to purchase  176,700  shares at $6.00 per share.  The net  proceeds of
approximately  $10.2 million are to be used for working capital and to redeem $4
million of the outstanding  Convertible Preferred Stock. In connection with this
redemption,  the  conversion  price of the  remaining $6 million of  Convertible
Preferred  Stock was fixed at $6.00 per share and the Company  issued the holder
of the Convertible  Preferred Stock 18-month warrants to purchase 325,000 shares
of common  stock at $6.00 per share.  A copy of the press  release  is  attached
hereto as Exhibit 99 and is hereby incorporated by reference herein.

     The  Company  has  agreed to use its best  efforts  to file a  registration
statement as to the common stock issued in the private  placement and underlying
the warrants and Convertible Preferred Stock referred to above.

Item 7.  Financial Statements and Exhibits

         (c)  Exhibits

              4.1     Form of Subscription Agreement

              4.2     Share Purchase Warrant Agreement

              4.3     Cross Receipt and Agreement

             99.      Press Release issued by
                      Coyote Network Systems, Inc. on May 28, 1999.

<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:  June 3, 1999                   COYOTE NETWORK SYSTEMS, INC.


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




<PAGE>
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{"company-data": {"conformed-name": "COYOTE NETWORK SYSTEMS INC", "cik": "0000057201", "assigned-sic": "3661", "irs-number": "362448698", "state-of-incorporation": "DE", "fiscal-year-end": "0331"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-05486", "film-number": "99639891"}, "business-address": {"street1": "4360 PARK TERRACE DRIVE", "city": "WESTLAKE VILLAGE", "state": "CA", "zip": "91361", "phone": "8187357600"}, "mail-address": {"street1": "4360 PARK TERRACE DRIVE", "city": "WESTLAKE VILLAGE", "state": "CA", "zip": "91361"}, "former-company": [{"former-conformed-name": "DIANA CORP", "date-changed": "19920703"}, {"former-conformed-name": "FH INDUSTRIES CORP", "date-changed": "19850814"}, {"former-conformed-name": "SCOT LAD FOODS INC", "date-changed": "19841202"}]}
===============================================================================

                                  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):
                                  May 27, 1999

                          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 May 27, 1999, the Company sold, pursuant to Rule 506 under Regulation D,
1,767,000 shares of common stock at $6.00 per share in a private  placement with
new and existing domestic and  international  institutional  investors.  Sunrise
Securities Corp., the placement agent, received cash commissions of $352,000 and
commissions in the form of common stock aggregating 131,148 shares and five-year
warrants  to purchase  176,700  shares at $6.00 per share.  The net  proceeds of
approximately  $10.2 million are to be used for working capital and to redeem $4
million of the outstanding  Convertible Preferred Stock. In connection with this
redemption,  the  conversion  price of the  remaining $6 million of  Convertible
Preferred  Stock was fixed at $6.00 per share and the Company  issued the holder
of the Convertible  Preferred Stock 18-month warrants to purchase 325,000 shares
of common  stock at $6.00 per share.  A copy of the press  release  is  attached
hereto as Exhibit 99 and is hereby incorporated by reference herein.

     The  Company  has  agreed to use its best  efforts  to file a  registration
statement as to the common stock issued in the private  placement and underlying
the warrants and Convertible Preferred Stock referred to above.

Item 7.  Financial Statements and Exhibits

         (c)  Exhibits

              4.1     Form of Subscription Agreement

              4.2     Share Purchase Warrant Agreement

              4.3     Cross Receipt and Agreement

             99.      Press Release issued by
                      Coyote Network Systems, Inc. on May 28, 1999.
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:  June 3, 1999                   COYOTE NETWORK SYSTEMS, INC.

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