UPDATE 2-LCA-Vision posts narrower-then-expected Q4 loss

* Q4 loss/shr $0.19 vs est. loss/shr $0.49

* Q4 rev $22 mln vs est. $21.4 mln

* Shares rise nearly 8 pct (Adds analyst comment, details, updates share movement)

Feb 9 (Reuters) - Laser vision-correction service provider LCA-Vision Inc (LCAV.O) posted a narrower-than-expected quarterly loss, helped by tighter cost controls, even as procedure volumes fell 40 percent.

For the fourth quarter, the company posted a net loss of $3.6 million, or 19 cents a share, compared with net loss of $8.2 million, or 44 cents a share in the year-ago period.

Revenue fell 35 percent to $22 million.

Analysts on average were expecting a loss of 49 cents a share, on revenue of $21.4 million, according to Thomson Reuters I/B/E/S.

"While many of the long-term investment merits of LCA-Vision remain intact, we believe the stock will have a difficult time outperforming until more concrete signs of an improved consumer environment appear," William Blair & Co analyst Ryan Daniels said in a note.

In 2009, the company took several measures to cut costs, including the closure of 12 underperforming vision centers and a headcount reduction of 19 percent.

Direct costs of services fell 14 pct, while general and administrative costs fell 23 percent during the quarter.

Procedure volume was 11,718 for the quarter, hit by the company's decision to reduce marketing expenses to less than $6 million for the quarter, it said.

LCA-Vision said it would raise its marketing and advertising spend in the first quarter of 2010 to $9 million to drive procedure volume.

The company also said it was changing its focus toward competing with individual surgeon practices, which control nearly two-thirds of the market.

"The company announced several positive changes on the marketing front, which may help stabilize volumes in 2010," said analyst Daniels.

Shares of the company were up 6 percent at $6.27 in morning trade on Nasdaq. They touched a high of $6.37 earlier in the session. (Reporting by Jennifer Robin Raj in Bangalore; Editing by Aradhana Aravindan)