SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
COYOTE NETWORK SYSTEMS, INC.
(Name of Issuer)
COMMON STOCK
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(Title of class of securities)
22406 P108
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(CUSIP Number)
June 26, 1998
(Date of event which requires
filing of this statement)
Check the appropriate box to designate the rule pursuant to which this
Schedule is filed:
[ ] Rule 13d-1(b)
[X ] Rule 13d-1(c)
[ ] Rule 13d-1(d)
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CUSIP No. 22406 P108
(1) Names of Reporting Person Comdisco, Inc.
S.S. or I.R.S. Identifica- 36-2687938
tion Nos. of Above Person
(2) Check the appropriate Box if a Member of a Group (a)
Not Applicable (b)
(3) SEC Use Only
(4) Citizenship or Place of
Organization Delaware
Number of Shares (5) Sole Voting Power 708,400
Beneficially Owned
by Each Reporting (6) Shared Voting 0
Person With
(7) Sole Dispositive 708,400
(8) Shared Dispositive Power 0
(9) Aggregate Amount Beneficially
Owned by Each Reporting Person 708,400
(10) Check if the Aggregate Amount
in Row (9) Excludes Certain Shares
(11) Percent of Class Represented
by Amount in Row (9) 6.6%
(12) Type of Reporting Person CO
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Introductory Note
On November 4, 1998 Coyote Network Systems, Inc. ("Coyote"), the
Issuer, distributed a 5% stock dividend to holders of its outstanding Common
Stock as of October 21, 1998. All share numbers in this Schedule 13G have been
adjusted to reflect this stock dividend.
In its most recent Form 10-Q filed with the Commission on November 16,
1998, Coyote reported that as of November 13, 1998 it had 10,506,148 shares of
Common Stock issued and outstanding.
Item 1(a). Name of Issuer:
Coyote Network Systems, Inc. ("Coyote").
Item 1(b). Address of Issuer's Principal Executive Offices:
Coyote's principal executive offices are located at 4300 Park Terrace Drive,
Westlake Village, California 91361.
Item 2(a). Name of Person Filing:
Comdisco, Inc. ("Comdisco").
Item 2(b). Address of Principal Business Office, or if none, Residence:
Comdisco's principal business address at 6111 North River Road, Rosemont,
Illinois 60018.
Item 2(c). Citizenship:
Comdisco is a Delaware corporation.
Item 2(d). Title of Class of Securities:
Common Stock, par value $1.00 per share ("Common Stock").
Item 2(e). CUSIP Number:
22406 P108
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Item 3. If this statement is filed pursuant to Rules 13d-1(b), or 13d-2(b)or
(c), check whether the person filing is:
(a) [ ] Broker or dealer registered under section 15 of the Act
(15 U.S.C. 78o).
(b) [ ] Bank as defined in section 3(a)(6) of the Act (15 U.S.C. 78c).
(c) [ ] Insurance company as defined in section 3(a)(19) of the Act
(15 U.S.C. 78c).
(d) [ ] Investment company registered under section 8 of the Investment
Company Act of 1940 (15 U.S.C. 80a-8).
(e) [ ] An investment adviser in accordance with
ss.240.13d-1(b)(1)(ii)(E).
(f) [ ] An employee benefit plan or endowment fund in accordance with
ss.240.13d-1(b)(1)(ii)(F).
(g) [ ] A parent holding company or control person in accordance with
ss.240.13d-1(b)(1)(ii)(G).
(h) [ ] A savings associations as defined in Section 3(b) of the Federal
Deposit Insurance Act (12 U.S.C. 1813).
(i) [ ] A church plan that is excluded from the definitions of an
investment company under section 3(c)(14) of the Investment Company Act of 1940
(15 U .S.C. 80a-3).
(j) [ ] Group, in accordance with ss.240.13d-1(b)(1)(ii)(J).
If this statement is filed pursuant to ss.240.13d-1(c), check this box [x].
Item 4. Ownership.
(a) Amount beneficially owned: 708,400
(b) Percent of class: 6.6%
(c) Number of shares as to which the person has:
(i) Sole power to vote or to direct the vote: 708,400
(ii) Shared power to vote or to direct the vote: 0
(iii) Sole power to dispose or to direct the disposition of: 708,400
(iv) Shared power to dispose or to direct the disposition of: 0
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Comdisco acquired 519,900 shares of Coyote Common Stock through open
market purchases effected on The NASDAQ Stock Market from time to time beginning
in March, 1998 ("Purchased Coyote Shares"). After giving effect to the sale of
14,500 of the Purchased Coyote Shares on December 7, 1998, as of the date of
this Schedule 13G. Comdisco beneficially owns 515,400 Purchased Coyote Shares.
Based on the number of shares of issued and outstanding Coyote Common Stock from
time to time reported during this period by Coyote in its filings with the
Commission, at no time did the Purchased Coyote Shares exceed 5% of the issued
and outstanding Coyote Common Stock.
However, in making its determination as to its beneficial ownership of
Coyote Common Stock, Comdisco inadvertently failed to include 193,000 shares of
Coyote Common Stock which it obtained the right to acquire pursuant to certain
warrants (the "Warrants") which were acquired by Comdisco in connection with
certain equipment financing transactions among Comdisco and Coyote, and Coyote's
customers. As a result of the Warrants, Comdisco became the beneficial owner of
an aggregate of 193,000 shares of Coyote Common Stock ("Warrant Shares") on the
following dates: 40,750 shares on March 26, 1998, 78,750 shares on June 26, 1998
and 73,500 shares on September 30, 1998. The Warrants have not been exercised to
date by Comdisco.
After taking into account its beneficial ownership of the Warrant
Shares, Comdisco acquired beneficial ownership of 5% of Coyote Common Stock on
June 26, 1998 when it obtained the right to acquire 78,750 Warrant Shares,
giving it 5.68% of issued and outstanding Coyote Common Stock as of that date
(treating the Warrant Shares as issued and outstanding as required by Rule 13d-3
of the Securities Exchange Act). Since that date, Comdisco has acquired
additional shares of Coyote Common Stock (including the right to acquire an
additional 73,500 Warrant Shares) resulting in its current beneficial ownership
of 6.6% of the issued and outstanding Coyote Common Stock.
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 [ ].
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
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Item 9. Notice of Dissolution of Group
Not applicable
Item 10. Certification
By signing below the undersigned certifies that, to the best of its
knowledge and belief, the securities referred to above were not acquired and are
not held for the purpose of or with the effect of changing or influencing the
control of the issuer of the securities and were not acquired in connection with
or as a participant in any transaction having such purpose or effect.
Signature
After reasonable inquiry and to the best of its knowledge and belief,
the undersigned certifies that the information set forth in this statement is
true, complete and correct.
Date: January 12, 1999
COMDISCO, INC.
By:
Name: /s/Philip A. Hewes
Title: Senior Vice President and
Secretary
