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
- --------------------------------------------------------------------------------
                         (Title of class of securities)

                                   22406 P108
- --------------------------------------------------------------------------------
                                 (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)



                                       -1-




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



                                      -2-



                                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

                                      -3-



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

                                      -4-


         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

                                      -5-


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