UPDATE 2-Licence sales slowdown hits F-Secure, shares dive

* CEO says licence sales likely slowing across industry

* Q3 sales 31.1 mln euros vs 32.3 mln avg in Reuters poll

* Q3 operating profit 6.6 mln vs 7.2 mln consensus

* Sees Q4 sales at 31-33 mln euros vs 34.3 mln consensus

* Shares down 8.8 pct

(Adds CEO comments, updates shares)

By Tarmo Virki, European technology correspondent

HELSINKI, Oct 22 (Reuters) - A slowdown in licence sales hurt July-September sales and profits at Finland's F-Secure (FSC1V.HE) and the security software maker forecast slower growth for the fourth quarter, sending its shares sharply lower on Thursday.

The falling licence sales cast a shadow over July-September earnings from F-Secure's larger rivals like Symantec (SYMC.O) and McAfee MFE.N, who will report next week.

"It would be quite reasonable to think the impact is similar across the industry," F-Secure's Chief Executive Kimmo Alkio told Reuters.

"The current situation in the global economy has impacted the traditional license business sales more than in previous quarters. This is seen as a slowdown in new license sales in addition to shortened renewal periods," the company said.

F-Secure said its sees fourth quarter sales growing to 31 million to 33 millions euro, somewhat slower than anticipated due to slower licence sales, and missing analysts 34.3 million average forecast in the Reuters poll.

Shares in F-Secure fell more than 10 percent to their lowest levels in 6 weeks, but later recovered some losses and were 8.8 percent lower at 2.70 euros by 1135 GMT.

F-Secure's third-quarter sales grew 8.7 percent to 31.1 million euros ($46.4 million), boosted by a strong rise in Software-as-a-Service sales through telecoms operators, but missed the average forecast of 32.3 million in a Reuters poll.

July-to-September operating profit fell to 6.6 million euros from 7.1 million a year ago, missing the 7.2 million consensus.

Alkio said he did not see a significant threat from Microsoft's (MSFT.O) free security service.

Investors of security software firms have closely followed the free service amid concern it could hurt sales of products from Symantec and McAfee, which generate billions of dollars of revenue a year protecting Windows PCs from attacks by hackers.

"The free market has grown somewhat, and it could grow somewhat more due to this," Alkio said.

Symantec and McAfee are due to report on Oct. 28 and Oct. 29, respectively. (Editing by David Holmes and Hans Peters) ($1=.6697 Euro)