UPDATE 2-Blue Coat shares plunge on weak Q1 view

* Q4 adj EPS $0.40 vs est $0.40

* Q4 rev $132.6 mln vs est $132.7 mln

* Sees Q1 adj shr $0.35-$0.40 vs est $0.40

* Shares down 17 pct after-mkt (Adds comments from conference call, updates share movement)

BANGALORE, May 27 (Reuters) - Internet-monitoring equipment maker Blue Coat Systems Inc BCSI.O posted a quarterly profit in-line with analysts' estimates hurt by higher operating expenses, and forecast first-quarter results below Street view, sending shares down more than 17 percent.

The company blamed the ongoing uncertainty surrounding the European economy for its weak first-quarter outlook.

"The current uncertainty in Europe could meaningfully impact our revenue and we've adjusted our guidance accordingly," Chief Executive Brian NeSmith said on a conference call with analysts.

Sunnyvale, California-based Blue Coat makes WAN optimization devices which speed up applications across networks without companies or organizations requiring to upgrade bandwidth.

The company expects adjusted profit for the first quarter of 35 cents a share to 40 cents a share, and revenue in the range of $121 million to $126 million.

Analysts were expecting earnings of 40 cents a share on revenue of $132.1 million, according to Thomson Reuters I/B/E/S.

The fourth quarter was driven by customers' ongoing needs to optimize their network investments, as well as to stop malicious attacks and maintain regulatory compliance, NeSmith said in a statement.

Net income for the fourth quarter was $23.6 million, or 49 cents per share, compared with a net loss of $3.5 million, or 9 cents per share, a year ago. Excluding items, the company posted earnings of 40 cents a share.

Revenue rose 17 percent to $132.6 million. Operating expenses rose more than 7 percent in the quarter ended April 30.

Analysts had expected earnings of 40 cents a share, on revenue of $132.7 million.

Shares of the company were down 16 percent in trading after the bell. They closed at $28.84 Thursday on Nasdaq. (Reporting by Sudipto Ganguly in Bangalore; Editing by Roshni Menon)