UTStarcom (NASDAQ:UTSI) dropped sharply Thursday after slashing its full-year revenue guidance on slower-than-anticipated project completions.

The provider of IPTV and Internet TV technologies now expects revenue to be in the range of $270 million to $280 million, down from its earlier prediction of $325 million.

Besides longer project completions, the revenue target also reflects final acceptances that fell behind expectations.

“These kinds of delays can occur in equipment sales-based businesses, and they are among the key factors in our decision to lower our range of targeted revenues,” UTStarcom CEO Jack Lu said in a statement. “We are working to correct this dynamic by shifting our business model, adding to our existing equipment-sales based business new service-based opportunities that can provide more predictable, high margin, recurring revenues.”

Separately, the company announced its decision to work with Cristar Media, a state-run broadcaster controlled by China Radio International, to provide Internet TV services in China and abroad.

Under the terms of the deal, UTStarcom will acquire 75% interest in Stage Smart Ltd. for $30 million, through which it will provide technology to Cristar. The cash and stock deal will give UTStarcom controlling entity of the company.

Lu said the partnership represents a “significant step” in its evolving business model, and shows how it plans to take advantage of opportunities offered through China’s “Three Network Convergence,” a central government policy aimed at providing voice, music, video and data services across the country by 2015.

Jiaqiang Zheng, Cristar’s director of the board, said the partnership provides the company with an “excellent technology and service platform and the opportunity to bring” its content to users in China and around the world.

The deal is pending customary closing conditions and regulatory approvals.