UPDATE 1-Merit Medical posts strong Q2 earnings; ups '08 view

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July 23 (Reuters) - Merit Medical Systems Inc (MMSI.O), which makes disposable medical devices, posted a better-than-expected second-quarter profit on strong margin growth, and raised its 2008 profit forecast.

"We are pleased that our plan for margin and profit improvement yielded record results for the quarter," Merit Chairman and Chief Executive Officer Fred Lampropoulos said, adding that improvement in procedure rates and acceptance of new products would drive future performance.

With the full-year gross margins now expected to be about 41.4 percent, the company now sees 2008 earnings at 70 cents to 72 cents a share up from its previous forecast 66 cents a share. Revenue forecast remains unchanged at $224 million.

Analysts currently expect 2008 earnings of 72 cents a share, on revenue of $224.8 million, according to Reuters Estimates.

South Jordan, Utah-based Merit reported second-quarter earnings of $5.8 million, or 21 cents a share, up from $3.6 million, or 13 cents a share a year ago. Revenue rose 11 percent to $57.4 million.

Analysts were expecting 19 cents a share, on revenue of $56.94 million.

In after-hours trade shares of Merit were little changed from its Nasdaq close of $19.88. (Reporting by Vidya L Nathan in Bangalore; Editing by Anthony Kurian)