UPDATE 2-Deluxe Corp Q1 profit beats Street view; shares rise

* Q1 adj EPS $0.73 vs est $0.60

* Sees Q2 EPS $0.58-$0.65 vs est $0.59

* Sees FY 2010 rev between $1.36-$1.40 bln

* Says looking at small to medium-sized acquisitions

* Shares up 12 percent (Adds conference call details, analysts' comments, details; updates stock activity) By Supantha Mukherjee and Abhinav Sharma

BANGALORE, April 22 (Reuters) - Deluxe Corp (DLX.N), the largest printer of checks in the United States, posted a quarterly profit that topped Wall Street view, and forecast second-quarter earnings largely above analysts' expectations, sending its shares up to a new two-year high.

"In the quarter, we simplified our processes and took complexity out of the business, while reducing our cost and expense structure," Chief Executive Lee Schram said on a post-earnings call.

Analyst Charles Strauzer of CJS Securities said lower-than-expected decline in check sales helped the quarterly results.

For 2010, Deluxe sees earning between $2.45 and $2.65 a share, on revenue of between $1.36 billion and $1.40 billion.

For the year, it expects $60 million in revenue from its recent acquisition of Custom Direct Inc, a provider of direct-to-consumer checks.

Analysts expect the company to do more deals in 2010 to boost its check business.

"The deals that they can do in paper check business financially can make a lot of sense because they can be very accretive, they have already got the printing facilities, they have access capacity," analyst John Kraft of DA Davidson said.

The company said it is also looking at potential small to medium-sized acquisitions to increase focus on its Small Business Services unit.

"We continue to closely monitor the small business market, and are optimistic that the decline is ending, and March took a step back," Chief Executive Lee Schram said.

Analyst Kraft said small business is in the cyclical downturn and will improve as the economy picks up.

For the first quarter, net income from continuing operations rose to $33.8 million, or 66 cents per share, from $12.5 million, or 24 cents a year earlier.

Adjusted earnings from continuing operations were 73 cents a share.

Revenue fell 1 percent to $335.1 million.

Analysts were expecting earnings of 60 cents a share, on revenue of $325.5 million, according to Thomson Reuters I/B/E/S.

The company expects second-quarter adjusted earnings from continuing operations of 58 cents to 65 cents a share, on revenue of between $335 million to $345 million.

Analysts were expecting earnings of 59 cents a share on revenue of $342.6 million.

Shares of the company were trading up $2.30 at $23.21 in afternoon trade Thursday on the New York Stock Exchange. They touched a high of $23.43 earlier in the session. (Reporting by Supantha Mukherjee in Bangalore; Editing by Don Sebastian, Maju Samuel)