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<HEAD>
<TITLE>Form 8-K</TITLE>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P align="center"><FONT size="2"><B>SECURITIES AND EXCHANGE COMMISSION</B>
</FONT>

<P>
<HR size="1" noshade width="50%">

<P align="center"><FONT size="2"><B>Washington, D.C. 20549</B>
</FONT>

<P align="center"><FONT size="2"><B><U>FORM 8-K</U></B>
</FONT>

<P align="center"><FONT size="2"><B><U>CURRENT REPORT</U></B>
</FONT>

<P align="center"><FONT size="2"><B>Pursuant to Section&nbsp;13 or 15(d) of the<BR>
Securities Exchange Act of 1934</B>
</FONT>
<P>&nbsp;
<P align="center"><FONT size="2">April 18, 2002</FONT>
<P align="center"><HR size="1" noshade width="50%">
<DIV align="center"><FONT size="2">(date of earliest event reported)</FONT>
</DIV>

<P>&nbsp;
<P align="center"><FONT size="3">NORTEL NETWORKS LIMITED</FONT>

<P align="center"><HR size="1" noshade width="50%">
<DIV align="center"><FONT size="2">(Exact name of registrant as specified in its charter)</FONT>
</DIV>
<P>&nbsp;
<P>&nbsp;

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
        <TD width="30%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="30%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="30%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align="center"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">CANADA</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="center"><FONT size="2">000-30758</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center"><FONT size="2">62-12-62580</FONT></TD>
</TR>

<TR valign="bottom">
        <TD align="center"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><HR size="1" noshade></FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD nowrap align="center"><FONT size="2"><HR size="1" noshade></FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center"><FONT size="2"><HR size="1" noshade></FONT></TD>
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<TR valign="bottom">
        <TD align="center"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">(State or other jurisdiction</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center"><FONT size="2">(Commission</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center"><FONT size="2">(IRS Employer</FONT></TD>
</TR>

<TR valign="bottom">
        <TD align="center"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">of incorporation)</FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center"><FONT size="2">File Number)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center"><FONT size="2">Identification No.)</FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
        <TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
        <TD colspan="4"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">8200 Dixie Road, Suite&nbsp;100, Brampton, Ontario, Canada</FONT></DIV></TD>
        <TD align="center"><FONT size="2">L6T 5P6</FONT></TD>
</TR>

<TR valign="bottom">
        <TD colspan="3"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2"><HR size="1" noshade></FONT></DIV></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center"><FONT size="2"><HR size="1" noshade></FONT></TD>
</TR>
<TR valign="bottom">
        <TD colspan="4"><DIV style="margin-left:10px; text-indent:-10px"><FONT size="2">(address of principal executive offices)</FONT></DIV></TD>
        <TD align="center"><FONT size="2">(Zip code)</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P><FONT size="2">Registrant&#146;s telephone number, including area code (905)&nbsp;863-0000.
</FONT>
<P align="center"><FONT size="2"></FONT>


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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<P align="left"><FONT size="2"><B>Item&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other Events</B>
</FONT>

<P><FONT size="2">On April&nbsp;18, 2002, Nortel Networks Corporation issued its financial results for
the first quarter of 2002. Nortel Networks Corporation owns all of the
Registrant&#146;s common shares and the Registrant is Nortel Networks Corporation&#146;s
principal direct operating subsidiary.
</FONT>
<P><FONT size="2">Nortel Networks Corporation stated that revenues from continuing operations
were US$2.91&nbsp;billion for the first quarter of 2002 compared to US$5.75&nbsp;billion
in the same period in 2001. Nortel Networks Corporation incurred an incremental
charge of approximately US$200&nbsp;million (pre-tax) for excess and obsolete
inventory, primarily related to recently completed negotiations with all of
Nortel Networks Corporation&#146;s major suppliers. Nortel Networks Corporation
reported a net loss in the first quarter of 2002 of US$841&nbsp;million, or US$0.26
per common share.
</FONT>
<P><FONT size="2">Nortel Networks Corporation recorded a strong cash balance at the end of the
first quarter of approximately US$3.1&nbsp;billion, which decreased from
approximately US$3.5&nbsp;billion at the end of the fourth quarter of 2001. The
decrease primarily reflected the loss from operations, the cash costs in the
quarter associated with restructuring, and capital spending, which was
partially offset by approximately US$500&nbsp;million from tax recoveries. The cash
reserves, combined with existing committed credit facilities, which are
undrawn, provide the Registrant with approximately US$6.6&nbsp;billion in sources of
liquidity.
</FONT>
<P><FONT size="2">Nortel Networks Corporation expects its customers to continue to limit capital
expenditures and, therefore, it is difficult for Nortel Networks Corporation to
predict how spending patterns will unfold in 2002. Nortel Networks Corporation
does not expect a significant downturn or a significant upturn in its revenues
for the second quarter compared to the first quarter of 2002. Nortel Networks
Corporation continues to expect ongoing improvements in its bottom line results
as it moves through 2002. Nortel Networks Corporation stated that, as it does
this, it will be working towards a cost structure, which it expects to be in
place by the fourth quarter of 2002, that would drive break even at quarterly
revenues of approximately US$3.5&nbsp;billion (not including costs related to
acquisitions and any special charges or gains).
</FONT>
<P><FONT size="2">At the end of the first quarter of 2002, Nortel Networks Corporation&#146;s
workforce numbered approximately 47,000. Following the completion of remaining
reductions, primarily related to previously announced European work council and
joint venture activities, and anticipated non-core business divestitures,
Nortel Networks Corporation expects to have a workforce of approximately
44,000.
</FONT>
<P><FONT size="2">Certain information is forward-looking and is subject to important risks and
uncertainties. The results or events predicted in these statements may differ
materially from actual results or events. Factors which could cause results or
events to differ from current expectations include, among other things: the
severity and duration of the industry adjustment; the sufficiency of our
restructuring activities, including the potential for higher actual costs to be
incurred in connection with restructuring actions compared to the estimated
costs of such actions; fluctuations in operating results and general industry,
economic and market conditions and growth rates; the ability to recruit and
retain qualified employees; fluctuations in cash flow; the level of outstanding
debt and debt ratings; the ability to meet financial covenants contained in our
credit agreements; the ability to make acquisitions and/or integrate the
operations and technologies of acquired businesses in an effective manner; the
impact of rapid technological and market change; the impact of price and
product competition; international growth and global economic conditions,
particularly in emerging markets and including interest rate and currency
exchange rate fluctuations; the impact of rationalization in the
telecommunications industry; the dependence on new product development; the
uncertainties of the Internet; the impact of the credit risks of our customers
and the impact of increased provision of customer financing and commitments;
stock market volatility; the entrance into an increased number of supply,
turnkey, and outsourcing contracts which contain delivery, installation, and
performance provisions, which, if not met, could result in the payment of
substantial penalties or liquidated damages; the ability to obtain timely,
adequate and reasonably priced component parts from suppliers and internal
manufacturing capacity; the future success of our strategic alliances; and the
adverse resolution of litigation. For additional information with respect to
certain of these and other factors, see the reports filed by Nortel Networks
Corporation and the Registrant with the United States Securities and Exchange
Commission. Unless otherwise required by applicable securities laws, Nortel
Networks
</FONT>

<P align="center"><FONT size="2">2
</FONT>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<P><FONT size="2">Corporation and the Registrant disclaim any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.
</FONT>

<P align="left"><FONT size="2"><B>Item&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements, <I>Pro Forma</I> Financial Information and Exhibits</B>
</FONT>

<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="1%" align="left" nowrap><FONT size="2">(c)</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="96%"><FONT size="2">Exhibits.</FONT></TD>
</TR>
</TABLE>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="4%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="1%" align="left" nowrap><FONT size="2">None</FONT></TD>
        <TD width="3%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="92%"><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
<P align="center"><FONT size="2"><B><U>SIGNATURES</U></B>
</FONT>

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="65%">
<TR valign="bottom">
        <TD width="50%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="45%">&nbsp;</TD>
</TR>
<TR valign="bottom">
      <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD colspan="2" valign="top"><FONT size="2">NORTEL NETWORKS LIMITED</FONT></TD>
</TR>
<TR>
<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
      <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD valign="top"><FONT size="2">By:</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Deborah J. Noble</FONT></TD>
</TR>
<TR valign="bottom">
      <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD valign="top"><FONT size="2"><HR size="1" noshade></FONT></TD>
</TR>
<TR valign="bottom">
      <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD valign="top"><FONT size="2">Deborah J. Noble</FONT></TD>
</TR>
<TR valign="bottom">
      <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD valign="top"><FONT size="2">Corporate Secretary</FONT></TD>
</TR>
<TR>
<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR>
<TD><FONT size="2">&nbsp;</FONT></TD>
</TR>
<TR valign="bottom">
      <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD valign="top"><FONT size="2">By:</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Blair F. Morrison</FONT></TD>
</TR>
<TR valign="bottom">
      <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD valign="top"><FONT size="2"><HR size="1" noshade></FONT></TD>
</TR>
<TR valign="bottom">
      <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD valign="top"><FONT size="2">Blair F. Morrison</FONT></TD>
</TR>
<TR valign="bottom">
      <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD valign="top"><FONT size="2">Assistant Secretary</FONT></TD>
</TR>
</TABLE>
</CENTER>

<P><FONT size="2">Dated: April&nbsp;22, 2002
</FONT>
<P align="center"><FONT size="2">3
</FONT>


</BODY>
</HTML>
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Form 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
April 18, 2002
(date of earliest event reported)
NORTEL NETWORKS LIMITED
(Exact name of registrant as specified in its charter)
CANADA
000-30758
62-12-62580
(State or other jurisdiction
(Commission
(IRS Employer
of incorporation)
File Number)
Identification No.)
8200 Dixie Road, Suite 100, Brampton, Ontario, Canada
L6T 5P6
(address of principal executive offices)
(Zip code)
Registrant's telephone number, including area code (905) 863-0000.
Item 5.     Other Events
On April 18, 2002, Nortel Networks Corporation issued its financial results for
the first quarter of 2002. Nortel Networks Corporation owns all of the
Registrant's common shares and the Registrant is Nortel Networks Corporation's
principal direct operating subsidiary.
Nortel Networks Corporation stated that revenues from continuing operations
were US$2.91 billion for the first quarter of 2002 compared to US$5.75 billion
in the same period in 2001. Nortel Networks Corporation incurred an incremental
charge of approximately US$200 million (pre-tax) for excess and obsolete
inventory, primarily related to recently completed negotiations with all of
Nortel Networks Corporation's major suppliers. Nortel Networks Corporation
reported a net loss in the first quarter of 2002 of US$841 million, or US$0.26
per common share.
Nortel Networks Corporation recorded a strong cash balance at the end of the
first quarter of approximately US$3.1 billion, which decreased from
approximately US$3.5 billion at the end of the fourth quarter of 2001. The
decrease primarily reflected the loss from operations, the cash costs in the
quarter associated with restructuring, and capital spending, which was
partially offset by approximately US$500 million from tax recoveries. The cash
reserves, combined with existing committed credit facilities, which are
undrawn, provide the Registrant with approximately US$6.6 billion in sources of
liquidity.
Nortel Networks Corporation expects its customers to continue to limit capital
expenditures and, therefore, it is difficult for Nortel Networks Corporation to
predict how spending patterns will unfold in 2002. Nortel Networks Corporation
does not expect a significant downturn or a significant upturn in its revenues
for the second quarter compared to the first quarter of 2002. Nortel Networks
Corporation continues to expect ongoing improvements in its bottom line results
as it moves through 2002. Nortel Networks Corporation stated that, as it does
this, it will be working towards a cost structure, which it expects to be in
place by the fourth quarter of 2002, that would drive break even at quarterly
revenues of approximately US$3.5 billion (not including costs related to
acquisitions and any special charges or gains).
At the end of the first quarter of 2002, Nortel Networks Corporation's
workforce numbered approximately 47,000. Following the completion of remaining
reductions, primarily related to previously announced European work council and
joint venture activities, and anticipated non-core business divestitures,
Nortel Networks Corporation expects to have a workforce of approximately
44,000.
Certain information is forward-looking and is subject to important risks and
uncertainties. The results or events predicted in these statements may differ
materially from actual results or events. Factors which could cause results or
events to differ from current expectations include, among other things: the
severity and duration of the industry adjustment; the sufficiency of our
restructuring activities, including the potential for higher actual costs to be
incurred in connection with restructuring actions compared to the estimated
costs of such actions; fluctuations in operating results and general industry,
economic and market conditions and growth rates; the ability to recruit and
retain qualified employees; fluctuations in cash flow; the level of outstanding
debt and debt ratings; the ability to meet financial covenants contained in our
credit agreements; the ability to make acquisitions and/or integrate the
operations and technologies of acquired businesses in an effective manner; the
impact of rapid technological and market change; the impact of price and
product competition; international growth and global economic conditions,
particularly in emerging markets and including interest rate and currency
exchange rate fluctuations; the impact of rationalization in the
telecommunications industry; the dependence on new product development; the
uncertainties of the Internet; the impact of the credit risks of our customers
and the impact of increased provision of customer financing and commitments;
stock market volatility; the entrance into an increased number of supply,
turnkey, and outsourcing contracts which contain delivery, installation, and
performance provisions, which, if not met, could result in the payment of
substantial penalties or liquidated damages; the ability to obtain timely,
adequate and reasonably priced component parts from suppliers and internal
manufacturing capacity; the future success of our strategic alliances; and the
adverse resolution of litigation. For additional information with respect to
certain of these and other factors, see the reports filed by Nortel Networks
Corporation and the Registrant with the United States Securities and Exchange
Commission. Unless otherwise required by applicable securities laws, Nortel
Networks
2
Corporation and the Registrant disclaim any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.
Item 7.     Financial Statements,
Pro Forma
Financial Information and Exhibits
(c)
Exhibits.
None
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.
NORTEL NETWORKS LIMITED
By:
/s/ Deborah J. Noble
Deborah J. Noble
Corporate Secretary
By:
/s/ Blair F. Morrison
Blair F. Morrison
Assistant Secretary
Dated: April 22, 2002
3