UPDATE 1-Heartland Payment posts Q2 net loss, lowers '09 outlook

* Q2 loss $0.07/shr vs EPS $0.30 yr ago

* Q2 adj EPS $0.25

* Q2 Reuters Estimates EPS $0.24, excl items

* Sees '09 rev $420mln-$425mln

* Sees '09 EPS $0.85-$0.90, excl items

Aug 4 (Reuters) - Heartland Payment Systems Inc (HPY.N) posted a quarterly loss, hurt by a provision for processing system security breach and higher expenses, and reduced its outlook for 2009.

For the second quarter, the company, which provides payment services to banks incurred a net loss of $2.6 million, or 7 cents a share, compared with a net income of $11.5 million, or 30 cents a share, last year.

Adjusted earnings were $9.3 million, or 25 cents a share, excluding the effect of expenses related to the processing system intrusion, the company said.

Excluding items, analysts were expecting a profit of 24 cents a share, according to Reuters Estimates.

Revenue for the quarter was up 6 percent to $417.4 million during the quarter, while total expenses rose 7 percent to $401.7 million.

Heartland sees full-year revenue in the range of $420 million to $425 million, and earning per share to be between 85 cents and 90 cents, excluding stock compensation expense.

"The economy in the second quarter was worse than expected, and revenue suffered from the combined impact of same store sales weakness and reduced installed margin growth compared to 2008," the company said.

Earlier this year, Heartland reported a system breach and stealing of credit card information by cyber thieves in 2008, and said cardholders would not be held responsible for unauthorized, fraudulent charges made by third parties.

Shares of the Princeton, New Jersey-based company closed at $10.44 on Monday on the New York Stock Exchange. (Reporting by Brenton Cordeiro in Bangalore; Editing by Jarshad Kakkrakandy)