In a sign of steeply accelerating declines in networking gear demand,

Nortel Networks

(NT)

again lowered its sales projections for the third quarter Wednesday, saying it now expects revenue to be 5% lower than guidance it gave only three weeks ago.

The struggling telecom-equipment maker says sales will be 15% lower than the second quarter's $2.77 billion.

As

anticipated, Nortel plans to seek shareholder approval for a reverse stock split that would put the share price somewhere in the range of $10 to $20, and that would enable it to avoid delisting action by the

New York Stock Exchange

. The shares closed Wednesday up 1 cent, or 1.6%, to 64 cents.