UPDATE 2-Kenexa Q4 results, Q1 view lag market; shares fall

* Q4 adj EPS $0.13 vs est $0.15

* Rev down 13 pct

* Sees Q1 adj EPS $0.08-$0.09 vs est $0.16

* Shrs down 10 pct after the bell (Adds conference call details, background; updates share movement)

Feb 2 (Reuters) - Kenexa Corp KNXA.O, which provides human resource software, posted lower-than-expected quarterly results hurt by lower subscription and professional services revenue, and forecast first-quarter results below market estimates, sending its shares down 10 percent after market.

The primary factor that will impact spending levels for HR software is the unemployment rate which is not expected to stabilize until the middle of 2010, a company executive said on a conference call with analysts.

"We expect the consulting portion of our business to remain choppy during the first half of 2010 with improvement beginning in the second half of the year," he said.

Human resource service companies like Kenexa are seeing an impact from the weak economy as clients defer projects or cancel services they consider non-essential, such as talent and organizational consulting and communications.

The company forecast first-quarter adjusted earnings of 8 cents to 9 cents a share, on revenue of $38 million to $40 million.

Analysts on average were expecting earnings of 16 cents a share, before special items, on revenue of $40.3 million according to Thomson Reuters I/B/E/S.

For the fourth quarter, net income was $355,000, or 1 cent a share, compared with a loss of $120.9 million, or $5.36 a share, a year ago.

Excluding items, the company earned 13 cents a share.

Revenue fell 13 percent to $39 million.

Subscription revenue was down 11 percent to $33.3 million while professional services and other revenue dropped 24 percent to $5.7 million.

Analysts on average were expecting earnings of 15 cents a share, before special items, on revenue of $39.6 million.

Shares of the company, which closed at $11 Tuesday on Nasdaq, were down $1.15 at $9.85 in trading after the bell. (Reporting by Divya Sharma in Bangalore; Editing by Unnikrishnan Nair) ((divya.sharma@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: divya.sharma.reuters.com@reuters.net))