UPDATE 1-Absolute Software posts wider-than-expected Q2 loss

* Lowers FY sales contracts outlook

* Q2 loss C$0.05/shr vs est C$0.03

* Q2 rev up 21 pct

* Q2 sales contracts down 2 pct

Feb 1 (Reuters) - Canada's Absolute Software Corp (ABT.TO) posted a wider-than-expected loss in its second quarter and said it lowered its outlook for full-year sales contracts, hurt by the continued devaluation of the US dollar.

For the quarter, the provider of computer security solutions reported a net loss of C$2.3 million, or 5 Canadian cents a share, compared with analysts expectations of loss of 3 Canadian cents a share according to Thomson Reuters I/B/E/S.

The company had posted a net loss of C$15.5 million, or 32 Canadian cents a share, in the prior-year period.

Sales contracts totalled C$16.1 million, down from C$16.5 million last year. In constant dollar terms, the company said sales contracts were up 12 percent.

Quarterly revenue rose 21 percent to C$15.8 million, while analysts were expecting revenue of C$15.95 million.

The company said it now expected full-year sales contracts of C$76 million to C$82 million, compared with its previous outlook of C$80 million to C$86 million.

Shares of the Vancouver-based company were trading up 2.3 percent at C$6.24 Monday on the Toronto Stock Exchange. (Reporting by Arnika Thakur in Bangalore ; Editing by Jarshad Kakkrakandy)