<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.

<MULTIPLIER>                                   1,000

                                            
<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
<PREFERRED-MANDATORY>                                    0
<PREFERRED>                                           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)