<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS LEGEND CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF COYOTE NETWORKS SYSTEMS, INC. AS
OF AND FOR THE QUARTER ENDED SEPTEMBER 30, 1999, AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-2000
<PERIOD-START> JUL-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 1036
<SECURITIES> 0
<RECEIVABLES> 3161
<ALLOWANCES> (305)
<INVENTORY> 0
<CURRENT-ASSETS> 5569
<PP&E> 4335
<DEPRECIATION> (350)
<TOTAL-ASSETS> 22780
<CURRENT-LIABILITIES> 8769
<BONDS> 1464
0
6000
<COMMON> 13678
<OTHER-SE> (9191)
<TOTAL-LIABILITY-AND-EQUITY> 22780
<SALES> 2449
<TOTAL-REVENUES> 2449
<CGS> 2099
<TOTAL-COSTS> 2099
<OTHER-EXPENSES> 2766
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 407
<INCOME-PRETAX> 3464
<INCOME-TAX> 0
<INCOME-CONTINUING> 3464
<DISCONTINUED> (2992)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 472
<EPS-BASIC> .03
<EPS-DILUTED> (.03)
</TABLE>