UPDATE 1-Axsys Q2 results top Street, raises 2008 view

(Recasts, adds details, share movement)

July 22 (Reuters) - Axsys Technologies Inc AXYS.O reported second-quarter results that topped market estimates as sales jumped 40 percent on strong demand for infrared cameras and lenses, and the company raised its fiscal 2008 forecast.

The company, which develops high-performance surveillance cameras and imaging systems for the aerospace and defense industries, posted net income of $6.1 million, or 53 cents a share, compared with $3.8 million, or 35 cents a share, in the year-ago period.

Axsys reported earnings from continuing operations of 54 cents a share. Sales for the quarter rose to $60.3 million from $43 million a year earlier.

Analysts on average were expecting earnings of 48 cents a share, excluding items, on revenue of $56.2 million, according to Reuters estimates.

The acquisition of the gyro-stabilized gimbal business in April 2007 also contributed to the year-over-year growth, the company said in a statement.

Looking ahead, the company expects 2008 earnings of $2.09 to $2.15 a share, up from its previous forecast of $1.88 to $1.92.

Axsys sees sales of between $237 million and $241 million for the year, up from its prior view of $224 million to $228 million.

Analysts were looking for earnings of $1.92 a share, on revenue of $227.7 million.

The company's shares, which have surged 77 percent so far this year, were trading at $65.50 after the bell. The stock closed at $63.32 Tuesday on Nasdaq. (Reporting by Biswarup Gooptu in Bangalore; Editing by Deepak Kannan)