8-K

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT
                       PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934

        Date of Report (Date of earliest event reported): July 25, 2001

                               CYLINK CORPORATION
             (Exact Name of Registrant as Specified in its Charter)

         California                       0-27742                 95-3891600
(State or Other Jurisdiction     (Commission File Number)     (I.R.S. Employer
     of Incorporation)                                       Identification No.)

                 3131 Jay Street, Santa Clara, California 95054
          (Address of Principal Executive Offices, Including Zip Code)

                                 (408) 855-6000
              (Registrant's Telephone Number, Including Area Code)

                                 Not Applicable
          (Former Name or Former Address, if Changed Since Last Report)



Item 5. Other Events.

         On July 25, 2001, Cylink  Corporation issued a press release announcing
its  results of  operations  for the quarter  ended July 1, 2001.  A copy of the
press  release is attached  hereto and filed as Exhibit  99.1 to this report and
incorporated herein by reference.


Item 7. Exhibits.

        99.1     Press Release dated July 25, 2001.



                                   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.

July 31, 2001

                                        CYLINK CORPORATION

                                        By:  /s/
                                            -----------------------------
                                            Christopher Chillingworth
                                            Chief Financial Officer
                                            (Principal Financial Officer)

EX-99

                                  EXHIBIT INDEX

                               EXHIBIT DESCRIPTION

99.1 Press Release dated July 25, 2001

FOR IMMEDIATE RELEASE

CYLINK CORPORATION REPORTS RESULTS FOR SECOND QUARTER 2001

SANTA CLARA,  Calif.,  July 25,  2001-Cylink  Corporation  (NASDAQ NMS: CYLK), a
leading developer of e-business security solutions, said today that it increased
second quarter  revenues by eight percent over the first quarter of 2001,  while
substantially  maintaining  cash  reserves  through  diligent  cost controls and
working capital management.

For the quarter ended July 1, 2001,  the company had a net loss of $6.5 million,
or $0.20 per share, on revenues of $13.6 million.  This compares with a net loss
of $7.1 million,  or $0.22 per share, on revenues  totaling $12.6 million in the
first  quarter of 2001 and a net loss of $6.1  million,  or $0.20 per share,  on
revenues of $18.0  million in the second  quarter last year.  Included in second
quarter 2001 results was a non-cash, $2.5 million writedown of assets associated
with Cylink's  previously  announced  windup of  operations  of its  Algorithmic
Research Ltd. subsidiary. Nevertheless, as a result of stringent cash management
strategies  implemented  by the company,  cash at the end of the second  quarter
totaled $11.8 million, down only slightly from $11.9 million at April 1st.

"Despite  the  weak  economy  in the  technology  sector,  we have  successfully
maintained  revenues from our core appliance product  families,  further reduced
our operating expenses,  upgraded our sales operation and strategy,  managed our
cash  assets,  and, we believe,  established  a  realistic  basis for  targeting
cash-flow  break-even  in the fourth  quarter this year and  profitability  next
year," said William P. Crowell, president and chief executive officer.

During the second  quarter,  sales of Cylink's ATM,  IPSec VPN,  Frame Relay and
Link  encryption  solutions  performed well, with sales to both existing and new
customers  strengthening  -particularly in the financial  services and corporate
banking sectors. A significant  portion of the Company's second quarter revenues
and  improved  margins  came  from  sales of  Cylink's  ATM  encryption  product
manufactured at the Cylink ATM Technology Center in Raleigh,  North Carolina,  a
business Cylink acquired in the second half of last year.

Earlier this year,  the company  announced  it was focusing its business  around
proven  high-performance  security appliances and bringing spending in line with
anticipated revenues. In the second quarter,  Cylink divested its Virginia-based
security  consulting  company  and  announced  that it will  close  its  Israeli
subsidiary,  ARL. Last week,  the company  initiated an additional  reduction in
force involving  approximately 28 percent of its employees which,  together with
the previous restructuring actions, will reduce total headcount to approximately
195 employees by the end of the third quarter.

"Our  restructuring  strategy has focused our  resources on the  company's  core
revenue  generating  business,"  Crowell said. "To that end, we have  sufficient
resources to provide strong sales, customer and engineering support for our Wide
Area  Network  and  IPSec  products,  and we  have  streamlined  our  management
structure.  The Company's  Public Key  Infrastructure  ("PKI") business has been
restructured in line with anticipated  revenues, at a level that leaves us fully
committed to  supporting  our valued  partnership  with the United States Postal
Service." The company also obtained but has not drawn upon a $7.5 million credit
line



from Silicon  Valley Bank in the second  quarter to provide  working  capital if
needed to fund future growth.

"We believe in the long-term viability of the markets for our security products,
and in the high-value,  high-performance  solutions we have developed.  With the
changes  we have  implemented  over the past few  months,  we  believe we have a
business  model that will enable the company to capitalize on Cylink's  multiple
strengths,"  Crowell said.

                                Six-Month Results

For the first six months of 2001,  Cylink  reported a net loss of $13.6 million,
or $0.42 per share, on revenues totaling $26.2 million.  In the same period last
year,  the  company  had a net loss of $12.3  million,  or $0.41 per  share,  on
revenues of $35.4 million.

                            Investor Conference Call

As  previously  announced,  Cylink  will  conduct  a  conference  call  for  all
interested  parties to review the company's results at 2 p.m. Pacific today. The
conference  call may be accessed  over the  Internet via the  company's  website
www.cylink.com,   at   www.streetfusion.com   or  via   telephone   by   dialing
212-896-6110.  When asked,  mention  Cylink and Bill  Crowell as the host of the
call. Those listening via the Internet should go to the site 15 minutes early to
register,  download,  and install any necessary  audio  software.  For those who
cannot listen to the live broadcast,  a replay will be available  through 4 p.m.
Pacific  on  August  8  by  dialing  800-633-8284   (domestic)  or  858-812-6440
(overseas) and entering passcode 19388808.

                            About Cylink Corporation

Cylink  Corporation  develops,  markets and supports a  comprehensive  family of
e-business  security  solutions.  Founded in 1983,  the company was the first to
market  security   solutions  that  protect   communications   with  public  key
cryptography.  Cylink  and its  wholly  owned  subsidiaries  serve  Fortune  500
companies,   multinational  financial  institutions,   and  government  agencies
worldwide. To contact Cylink, call (408) 855-6000 or visit www.cylink.com.

                Cylink is a registered trademark of Cylink Corp.

Some of the statements in this release are forward looking statements subject to
risks  and  uncertainties.   Forward  looking  statements  include   predictions
regarding  the  impact  of  Cylink's  current  restructuring  efforts  on future
results, and about Cylink's success in reaching break even or profitability by a
specific  date.  Factors  that could  cause  actual  results to differ  from the
Company's  expectations  include  further  weakening  of  the  markets  for  our
products, lack of market acceptance for our products, pressure from competitors,
unforeseen technological or regulatory changes, loss of key personnel, and other
risk factors listed from time to time in Cylink's reports to the SEC,  including
Cylink's Annual Report and Cylink's reports on Forms 10-K and 10-Q.