UPDATE 2-Websense sees weaker second half; shares fall

* Q2 adj EPS $0.31 vs est $0.28

* Q2 rev up 5 pct

* Cuts 2010 rev view range

* Shares down 9 pct in post-mkt trade (Adds conference call details)

July 27 (Reuters) - Web-security software provider Websense Inc (WBSN.O) bested quarterly profit expectations, but missed revenue estimates and lowered the range of its 2010 revenue outlook, sending shares down 9 percent in post-market trade.

"We see challenges to our overall performance for the second half of the year from the volatility in European currency exchange rates," CEO Gene Hodges said in a statement.

The company said it also saw a slight weakening of end-user demand at the end of the second quarter, specifically in Europe, and expected this weakness to continue into the second half.

Retention rates of small business customers were also hurt and billings with non-strategic original equipment manufacturers continued to decline.

Websense lowered its full-year billings outlook to a range of 360 million to 370 million from its previous view of $372 million to $388 million.

In a conference call with analysts, it said recent changes to its sales team also hurt results and would continue to depress the third quarter, but expected this to be corrected by the fourth quarter.

The company now expects 2010 revenue of $333 million to $337 million, down from its previous view of $334 million to $342 million. This compares with analysts' expectation of $342.1 million for the year, according to Thomson Reuters I/B/E/S.

It narrowed its expected 2010 adjusted earnings outlook range to between $1.17 and $1.22 a share, from $1.16 to $1.23 a share.

For the second quarter, the company's adjusted earnings of 31 cents a share, beat consensus expectations of 28 cents.

Revenue rose about 5 percent to $81.9 million, while adjusted revenue was $83.2 million. Analysts were expecting revenue of $84.3 million. [ID:nWNAB9881]

Shares of the San Diego, California-based company were trading down $1.87 at $19.51 in extended trading. They closed at $21.38 Tuesday on Nasdaq. (Reporting by Sayantani Ghosh in Bangalore; Editing by Anthony Kurian)