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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

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

<P align="center"><FONT size="2"><HR size="1" noshade width="30%">
</FONT>
<P align="center"><FONT size="2"><B>Washington, D.C. 20549</B>
</FONT>

<P align="center"><FONT size="4"><B>FORM 8-K</B>
</FONT>

<P align="center"><FONT size="2"><B>CURRENT REPORT</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 align="center"><FONT size="2">Date of Report<BR>
(date of earliest event reported)<BR>
September&nbsp;25, 2002
</FONT>

<P align="center"><FONT size="3">NORTEL NETWORKS LIMITED</FONT><BR>
<HR size="1" noshade width="30%">
<DIV align="center"><FONT size="2">(Exact name of registrant as specified in its charter)</FONT></DIV>

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        <TD width="34%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="28%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="28%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align="center" valign="top"><FONT size="2">CANADA</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top"><FONT size="2">
000-30758
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top"><FONT size="2">62-12-62580</FONT></TD>
</TR>
<TR>
        <TD align="center" valign="middle"><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="middle"><FONT size="2">
<HR size="1" noshade>
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="middle"><HR size="1" noshade></TD>
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<TR valign="bottom">
        <TD align="center" valign="top"><FONT size="2">(State or other jurisdiction<BR>
of incorporation)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top"><FONT size="2">
(Commission<BR>
File Number)
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top"><FONT size="2">(IRS Employer<BR>
Identification No.)</FONT></TD>
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<P>&nbsp;

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<TABLE cellspacing="0" border="0" cellpadding="0" width="65%">
<TR valign="bottom">
        <TD width="51%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="44%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align="center" valign="top"><FONT size="2">8200 Dixie Road, Suite&nbsp;100, Brampton, Ontario, Canada</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top"><FONT size="2">&nbsp;<BR>
L6T 5P6</FONT></TD>
</TR>
<TR>
        <TD align="center" valign="middle"><HR size="1" noshade></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="middle"><FONT size="2">
<HR size="1" noshade></FONT></TD>
</TR>
<TR valign="bottom">
        <TD align="center" valign="top"><FONT size="2">(address of principal executive offices)</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="center" valign="top"><FONT size="2">
(Zip code)</FONT></TD>
</TR>
</TABLE>
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<P>&nbsp;

<P><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registrant&#146;s telephone number, including area code (905)&nbsp;863-0000.
</FONT>
<P align="center"><FONT size="2">&nbsp;</FONT>
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<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

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	<TD width="3%"></TD>
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	<TD width="76%"></TD>
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<TR><TD colspan="9"><A HREF="#000">SIGNATURES</A></TD></TR>
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>




<P align="left"><FONT size="2"><B>Item&nbsp;5. Other Events</B>
</FONT>

<P><FONT size="2">On September&nbsp;25, 2002, Nortel Networks Corporation issued a press release
announcing that it now expects revenues from continuing operations in the third
quarter of 2002 to be lower than second quarter 2002 revenues from continuing
operations by approximately 15%. This compares to its previously stated
guidance of expected sequentially lower revenues in the third quarter of 2002
of &#147;up to approximately 10%&#148;. Further deterioration in spending by service
providers, generally in the United States and for wireless networks in Asia,
has resulted in the revised outlook.
</FONT>
<P><FONT size="2">Despite the current revenue outlook, Nortel Networks Corporation continues to
expect that the impact of its ongoing restructuring will result in a lower cost
structure in the third quarter of 2002. Factoring the uncertainty about the
timing of a meaningful recovery in the telecom market into its quarterly review
procedures regarding the potential realization of the income tax assets on its
balance sheet, Nortel Networks Corporation at this time anticipates recognizing
significantly lower than expected income taxes against its loss for the third
quarter.
</FONT>
<P><FONT size="2">In addition, Nortel Networks continues to assess its overall liquidity needs
and expects to enter into discussions with its banks regarding its existing
credit facilities (all of which are currently undrawn).
</FONT>
<P><FONT size="2">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">Certain information included in this report 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 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="center"><FONT size="2"></FONT>




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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<!-- link1 "SIGNATURES" -->
<DIV align="left"><A NAME="000"></A></DIV>
<P align="center"><FONT size="2"><B>SIGNATURES</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>
<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">
<TR valign="top">
        <TD width="50%"><FONT size="2">&nbsp;</FONT></TD>
        <TD width="50%"><FONT size="2">NORTEL NETWORKS LIMITED</FONT></TD>
</TR>
</TABLE>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
        <TD width="45%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="3%">&nbsp;</TD>
        <TD width="5%">&nbsp;</TD>
        <TD width="42%">&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
By:
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">/s/ Deborah J. Noble<BR>
</FONT><HR size="1" noshade width="60%"><FONT size="2">
Deborah J. Noble<BR>
Corporate Secretary</FONT></TD>
</TR>
<TR><TD><FONT size="2">&nbsp;</FONT></TD></TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">
By:
</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">/s/ Douglas C. Beatty<BR>
</FONT><HR size="1" noshade width="60%"><FONT size="2">
Douglas C. Beatty<BR>
Chief Financial Officer</FONT></TD>
</TR>
<TR><TD><FONT size="2">&nbsp;</FONT></TD></TR>
<TR valign="bottom">
        <TD valign="top"><FONT size="2">Dated: September 26, 2002</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
        <TD><FONT size="2">&nbsp;</FONT></TD>
        <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
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<P align="center"><FONT size="2">&nbsp;</FONT>



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e8vk
Table of Contents
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)
September 25, 2002
NORTEL NETWORKS LIMITED
(Exact name of registrant as specified in its charter)
CANADA
000-30758
62-12-62580
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
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.
TABLE OF CONTENTS
SIGNATURES
Table of Contents
Item 5. Other Events
On September 25, 2002, Nortel Networks Corporation issued a press release
announcing that it now expects revenues from continuing operations in the third
quarter of 2002 to be lower than second quarter 2002 revenues from continuing
operations by approximately 15%. This compares to its previously stated
guidance of expected sequentially lower revenues in the third quarter of 2002
of "up to approximately 10%". Further deterioration in spending by service
providers, generally in the United States and for wireless networks in Asia,
has resulted in the revised outlook.
Despite the current revenue outlook, Nortel Networks Corporation continues to
expect that the impact of its ongoing restructuring will result in a lower cost
structure in the third quarter of 2002. Factoring the uncertainty about the
timing of a meaningful recovery in the telecom market into its quarterly review
procedures regarding the potential realization of the income tax assets on its
balance sheet, Nortel Networks Corporation at this time anticipates recognizing
significantly lower than expected income taxes against its loss for the third
quarter.
In addition, Nortel Networks continues to assess its overall liquidity needs
and expects to enter into discussions with its banks regarding its existing
credit facilities (all of which are currently undrawn).
Nortel Networks Corporation owns all of the Registrant's common shares, and the
Registrant is Nortel Networks Corporation's principal direct operating
subsidiary.
Certain information included in this report 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 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.
Table of Contents
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/ Douglas C. Beatty
Douglas C. Beatty
Chief Financial Officer
Dated: September 26, 2002