UPDATE 1-Icad Q2 profit beats estimates, gives 2008 rev outlook

(Adds details)

July 31 (Reuters) - Icad Inc (ICAD.O) posted a quarterly profit that beat Wall Street expectations by a wide margin, helped by strong demand for its digital products, and forecast full-year earnings above market estimates.

Second quarter net income for the company, which provides computer-aided cancer detection systems, was $2.4 million, or 5 cents a share, compared with a loss of $840,000, or 2 cents a share, a year ago. Revenue rose 83 percent to $9.7 million.

Analysts on average expected earnings of 3 cents a share, before special items, on revenue of $8.9 million, according to Reuters Estimates.

The company said revenue from its digital products more than doubled to $8.0 million.

It sees 2008 revenue of $38 million to $39 million, while analysts were expecting revenue of $35.5 million.

Shares of the Nashua, New Hampshire-based company closed at $3.00 Wednesday on Nasdaq. (Reporting by Vidya L Nathan in Bangalore; Editing by Jarshad Kakkrakandy)