UNITED  STATES
     SECURITIES  AND  EXCHANGE  COMMISSION
     Washington,  D.C.  20549

     SCHEDULE  13D

     Under  the  Securities  Exchange  Act  of  1934
     (Amendment  No.  4)

     COYOTE  NETWORK  SYSTEMS,  INC.  (formerly  The  Diana  Corporation)
     (Name  of  Issuer)

     Common
     (Title  of  Class  of  Securities)

     22406P108
     (CUSIP  Number)

Dawson-Samberg Capital Management, Inc., 354 Pequot Ave., Southport CT  06490
 203/254-0091
     (Name,  Address  and  Telephone  Number  of  Person
     Authorized  to  Receive  Notices  and  Communications)

     December  31,  1997
     (Date  of  Event  which  Requires
     Filing  of  this  Statement)

If  the  filing  person  has  previously  filed a statement on Schedule 13G to
report  the  acquisition  which  is  the  subject of this Schedule 13D, and is
filing  this  schedule because of Rule 13d-1(b)(3) or (4), check the following
box  o.

Check  the following box if a fee is being paid with this statement o.  (A fee
is not required only if the reporting person:  (1) has a previous statement on
file  reporting beneficial ownership of more than five percent of the class of
securities  described  in  Item  1;  and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.)
 (See  Rule  13d-7.)

NOTE:    Six copies of this statement, including all exhibits, should be filed
with  the  Commission.  See Rule 13d-1(a) for other parties to whom copies are
to  be  sent.

*The remainder of this cover page shall be filled out for a reporting person's
initial  filing  on this form with respect to the subject class of securities,
and  for any subsequent amendment containing information which would alter the
disclosures  provided  in  a  prior  cover  page.

The  information  required  in  the  remainder of this cover page shall not be
deemed  to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the  Act but shall be subject to all other provisions of the Act (however, see
the  Notes).

1          Name  of  Reporting  Person DAWSON-SAMBERG CAPITAL MANAGEMENT, INC.

     IRS  Identification  No.  of  Above  Person  06-1033494
2          Check  the  Appropriate  Box  if  a  Member  of  a  Group    (a)  o

      (b)  o
3          SEC  USE  ONLY

4          Source  of  Funds  00

5          Check  Box  if  Disclosure  of  Legal  Proceedings  is
     Required  Pursuant  to  Items  2(d)  or  2(e)

6          Citizenship  or  Place  of  Organization  CONNECTICUT

     7          Sole  Voting  Power  160,715

 NUMBER  OF
 SHARES
 BENEFICIALLY
 OWNED  BY  EACH
 REPORTING
 PERSON  WITH
     8          Shared  Voting  Power

     9          Sole  Dispositive  Power  160,715

     10          Shared  Dispositive  Power

11        Aggregate Amount Beneficially Owned by Each Reporting Person 160,715

12         Check Box if the Aggregate Amount in Row 11 Excludes Certain Shares

13          Percent  of  Class  Represented  by  Amount  in  Row  11  1.8%

14          Type  of  Reporting  Person  IA

1          Name  of  Reporting  Person  PORRIDGE,  L.L.C.

     IRS  Identification  No.  of  Above  Person  06-1391106
2          Check  the  Appropriate  Box  if  a  Member  of  a  Group    (a)  o

      (b)  o
3          SEC  USE  ONLY

4          Source  of  Funds  WC

5          Check  Box  if  Disclosure  of  Legal  Proceedings  is
     Required  Pursuant  to  Items  2(d)  or  2(e)

6          Citizenship  or  Place  of  Organization  CONNECTICUT

     7          Sole  Voting  Power  63,000

 NUMBER  OF
 SHARES
 BENEFICIALLY
 OWNED  BY  EACH
 REPORTING
 PERSON  WITH
     8          Shared  Voting  Power

     9          Sole  Dispositive  Power  63,000

     10          Shared  Dispositive  Power

11     Aggregate Amount Beneficially Owned by Each Reporting Person           
                                                63,000
12         Check Box if the Aggregate Amount in Row 11 Excludes Certain Shares

13          Percent  of  Class  Represented  by  Amount  in  Row  11  0.7%

14          Type  of  Reporting  Person  PN

1          Name  of  Reporting  Person  ARTHUR  J.  SAMBERG

     IRS  Identification  No.  of  Above  Person  ###-##-####
2          Check  the  Appropriate  Box  if  a  Member  of  a  Group    (a)  o

      (b)  o
3          SEC  USE  ONLY

4          Source  of  Funds  PF

5          Check  Box  if  Disclosure  of  Legal  Proceedings  is
     Required  Pursuant  to  Items  2(d)  or  2(e)

6          Citizenship  or  Place  of  Organization  UNITED  STATES

     7          Sole  Voting  Power  105,945

 NUMBER  OF
 SHARES
 BENEFICIALLY
 OWNED  BY  EACH
 REPORTING
 PERSON  WITH
     8          Shared  Voting  Power

     9          Sole  Dispositive  Power  105,945

     10          Shared  Dispositive  Power

11     Aggregate Amount Beneficially Owned by Each Reporting Person           
                                              105,945
12         Check Box if the Aggregate Amount in Row 11 Excludes Certain Shares

13          Percent  of  Class  Represented  by  Amount  in  Row  11  1.2%

14          Type  of  Reporting  Person  IN

This Amendment Number 4 sets forth changes in the information previously filed
on  Schedule  13D  relative  to the holdings of Common Stock of Coyote Network
Systems,  Inc.  ("CYOE") (formerly known as The Diana Corporation), a Delaware
corporation.    CYOE's  principal  executive  office  is  located at 4360 Park
Terrace  Drive,  Westlake  Village,  CA  91361.


ITEM  1.    SECURITY  AND  ISSUER

          This  statement  relates  to  the Common Stock, $1.00 par value (the
"Shares")  of  Coyote  Network  Systems, Inc., a Delaware corporation.  CYOE's
principal  executive  office  is  located at 4300 Park Terrace Drive, Westlake
Village,  CA  91361.

ITEM  2.    IDENTITY  AND  BACKGROUND

            This statement is being filed on behalf of Dawson-Samberg Capital
Management,  Inc.  ("Dawson-Samberg"),  a  Connecticut  corporation, Porridge,
L.L.C.  ("Porridge"),  a  Connecticut  limited liability company and Arthur J.
Samberg  ("Samberg"),  individually  (collectively, the "Reporting Persons"). 
The  principal  business  of  Dawson-Samberg, an investment adviser registered
under  the Investment Advisers Act of 1940, is to act as investment adviser to
certain  managed  accounts.    The  executive  officers  of Dawson-Samberg are
Messrs.  Jonathan  T.  Dawson,  Arthur  J.  Samberg  and  Amiel M. Peretz, the
directors  of  Dawson-Samberg  are  Messrs.  Dawson and Samberg and Ms. Sheila
Clancy,  and  the  controlling  shareholders  are  Messrs.  Dawson and Samberg
(collectively,  the  "Executive Officers, Directors and Controlling Persons").
The  sole  business  of Porridge, L.L.C., of which Mr. Samberg is the managing
member,  is  to  invest in securities and financial instruments.  The business
address  of  the  Reporting  Persons and the Executive Officers, Directors and
Controlling  Persons  is  354  Pequot  Avenue,  Southport,  CT  06490.

     Neither  of  the  Reporting Persons nor the Executive Officers, Directors
and  Controlling Persons have, during the last five years, been convicted in a
criminal  proceeding  (excluding  traffic violations or similar misdemeanors).

     Neither  of   the Reporting Persons nor the Executive Officers, Directors
and  Controlling  Persons  have, during the last five years, been a party to a
civil  proceeding  of  a  judicial  or  administrative  body  of  competent
jurisdiction  which  resulted  in  a judgment, decree or final order enjoining
future  violations  of,  or  prohibiting  or  mandating  activities subject to
federal or state securities laws or finding any violation with respect to such
laws.    Each of the Executive Officers, Directors and the Controlling Persons
are  citizens  of  the  United  States.



ITEM  3.    SOURCE  AND  AMOUNT  OF  FUNDS  OR  OTHER  CONSIDERATION

          As of the date hereof, the Reporting Persons beneficially own in the
aggregate  329,660 Shares.  Of the 329,660 Shares, Dawson-Samberg beneficially
owns  160,715  shares  held  by  accounts  for  which Dawson-Samberg exercises
investment  discretion  (the  "Accounts"), 63,000 shares are owned by Porridge
and  105,945  shares  are  owned  by  Samberg.

     The  funds  for the purchase of Shares held by the Accounts were obtained
from the contributions of their various partners/shareholders.  Such funds may
also  include the proceeds of margin loans entered into in the ordinary course
of  business  with  Morgan  Stanley  &  Company,  Inc.




ITEM  4.    PURPOSE  OF  TRANSACTION

          No  Change

ITEM  5.    INTEREST  IN  SECURITIES  OF  THE  ISSUER

          As of the date hereof, the Reporting Persons beneficially own in the
aggregate  329,660  Shares.   These Shares represent approximately 3.7% of the
8,815,845  Shares  believed  to  be  outstanding.  Dawson-Samberg has the sole
power  to  dispose  and  direct  the  disposition  of 160,715 of these Shares,
Porridge  has  the sole power to vote, direct the vote, dispose and direct the
disposition of the 63,000 Shares owned by it and Samberg has the sole power to
vote,  direct  the  vote,  dispose  and  direct the disposition of the 105,945
Shares  owned by him.  The Reporting Persons ceased to be the beneficial owner
of  more  than  5%  of  the  Shares  on  December  31,  1997.

          The  transactions  in  the  Shares effected by the Reporting Persons
during the past sixty (60) days were each sales in the open market by Accounts
managed  by  Dawson-Samberg  Capital  Management,  Inc.  and  were as follows:


          DATE                           # OF SHARES SOLD          PRICE
          12/18/97                      9,975                           6.5625
          12/19/97                      5,000                           6.5625
          12/24/97                      3,000                           5.9375
          12/31/97                    27,790                            6.3162
          1/02/98                             10,000                    2.4375
          1/05/98                             30,000                    2.4375
          1/06/98                             10,000                    2.4375
          1/07/98                             10,000                    2.4375

ITEM  6.    CONTRACTS,  ARRANGEMENTS,  UNDERSTANDINGS  OR  RELATIONSHIPS WITH
RESPECT  TO  SECURITIES  OF  THE          ISSUER

          Not  Applicable

ITEM  7.    MATERIAL  TO  BE  FILED  AS  EXHIBITS

     A copy of a written agreement relating to the filing of a joint statement
as  required  by  Rule  13d-1(f)  under the Securities Exchange Act of 1934 is
attached  hereto  as  Exhibit  A.




THIS TABLE HAS BEEN SQUEEZED AS FAR AS IT CAN GO WITHOUT WORDS/## BREAKING UP.
 IF  ATTY  WANTS  MORE  INFO  OR "MORE SPACE", HE'LL HAVE TO BUMP FONT TO SZ.8
AND/OR  MAKE  MARGINS  THINNER.          After a reasonable inquiry and to the
best  of my knowledge and belief, the undersigned certify that the information
set  forth  in  this  statement  is  true,  complete  and  correct.


Dawson-Samberg  Capital  Management,  Inc.

By:  /s/    Arthur  J.  Samberg
   Arthur  J.  Samberg,  President


Porridge  Partners  II

By:  /s/    Arthur  J.  Samberg
   Arthur  J.  Samberg,  General  Partner


Arthur  J.  Samberg

By:  /s/    Arthur  J.  Samberg
   Arthur  J.  Samberg,  Individually




January  9,  1998






     EXHIBIT  A

      AGREEMENT


     The  undersigned agree that this Amendment Number 4 to Schedule 13D dated
January  9,  1998  relating  to  the Shares of Coyote Network Systems, Inc. on
shall  be  filed  on  behalf  of  the  undersigned.


Dawson-Samberg  Capital  Management,  Inc.

By:  /s/  Arthur  J.  Samberg
   Arthur  J.  Samberg,  President


Porridge,  L.L.C.

By:  /s/    Arthur  J.  Samberg
   Arthur  J.  Samberg,  General  Partner


Arthur  J.  Samberg

By:  /s/    Arthur  J.  Samberg
   Arthur  J.  Samberg,  Individually