UPDATE 3-Calamos profit falls on revenue decline

* Q2 profit falls 6 pct to $1.79 mln from $1.89 mln

* Revenue down 40 percent on fall in assets
(Adds details on profit)

BOSTON, July 28 (Reuters) - Calamos Asset Management Inc
(CLMS.O) said on Tuesday second-quarter profit fell 6 percent
as cost cuts helped offset a steep revenue decline.

The Naperville, Illinois-based asset manager reported
second-quarter net income attributable to the company of $1.79
million, or 9 cents per share, compared with $1.89 million, or
9 cents a share, a year earlier.

Revenue of $67.1 million was down 40 percent from a year
ago but up 13 percent from the first quarter. Calamos said in a
statement the year-over-year decline reflected much lower
assets under management, following sharp market declines.

Analysts had expected earnings of 14 cents a share on
revenue of $64.7 million in the second quarter, according to
Reuters Estimates.

Assets under management were $27 billion at the end of
June, up from $23.5 billion at the end of March, but down from
$41.2 billion a year earlier.

Assets under management determine the fees companies earn
and in turn drives their profits. Amid the market declines,
Calamos made sharp cuts in operating expenses including cutting
jobs and halting sales of Class B fund shares to reduce selling
expenses. Even so, operating income fell to $21.4 million from
$49.1 million a year earlier. Before adjustments for the
holdings of Calamos affiliates, net income was $12.4 million,
down from $53.6 million a year earlier.

Rival companies, including Legg Mason Inc (LM.N) and
BlackRock Inc (BLK.N), also have reported that assets fell from
a year ago, but rose from the first quarter, tied closely to
stock markets.

Calamos shares are up 93 percent this year, twice as much
as many rivals, although as a smaller company it can be a more
volatile stock.
(Reporting by Ross Kerber; editing by Andre Grenon, Richard
Chang and Matthew Lewis)