UPDATE 1-Daktronics Q2 profit dips; sees rev drop in Q3

* Q2 EPS $0.12 vs $0.30 last year

* Q2 rev $115.4 mln, down 32 pct

* Shares down about 5 pct

Nov 24 (Reuters) - Electronic scoreboards supplier Daktronics Inc (DAKT.O) reported a 60 percent drop in quarterly profit, hurt by a slump in sales at two of its segments, and forecast a more than seasonal decline in third-quarter net sales.

"We expect the sequential decline (in net sales) in the third quarter of fiscal 2010 will be greater than the average of 15 percent," Chief Executive Jim Morgan said in a statement.

The company also said it expects lower gross profit margins in the third and fourth quarters, resulting from competitive factors and the weaker sales levels.

For the second quarter, the company earned $4.8 million, or 12 cents a share, compared with $12.2 million, or 30 cents a share, a year ago.

Revenue fell 32 percent to $115.4 million, hurt by lower sales at its commercial and live events segments. Commercial sales fell 48 percent to $24.9 million, while sales at its live events segment fell 38 percent to $49 million.

Analysts, on average were looking for earnings, excluding special items, of 2 cents a share, on revenue of $108.3 million, according to Thomson Reuters I/B/E/S.

Shares of the Brookings, South Dakota-based company were down about 5 percent at $7.99 in morning trade Tuesday on Nasdaq. (Reporting by Saqib Iqbal Ahmed in Bangalore; Editing by Maju Samuel) ((saqib.ahmed@thomsonreuters.com; within US +1 646 223 8780; outside U.S +91 80 4135 5800; Reuters Messaging saqib.ahmed.reuters.com@reuters.net))