UPDATE 1-DivX Q3 profit beats estimates; ups '08 profit view

* Q3 adj EPS beats estimates by 34 percent

* Sees gaining share in key markets

* 2008 adj EPS view raised, revenue outlook cut

* Shares up 7 percent

Oct 31 (Reuters) - Video compression software maker DivX Inc (DIVX.O) posted higher quarterly profit beating market estimates and raised its full-year profit view as it continues to gain a foothold in key device categories like digital televisions and mobile phones.

The company, however, lowered the upper end of its full-year revenue estimate despite expanding into emerging product categories as it still suffers from a continued slowdown in consumer spending.

Analysts were expecting the company to be hurt by a fall in DVD player sales, which has contributed to crimping sales so far this year and led to a 60 percent fall in its value.

Shares of the San Diego-based company were up 7 percent at $5.95 in after-hours trading. The stock closed up 6 percent at $5.55 in regular trading Thursday on Nasdaq.

DivX, whose technology is also used in gaming consoles, said third-quarter net income almost quadrupled to $3.3 million, while revenue rose 11 percent to $24.4 million.

It now expects full-year non-GAAP earnings of 58 cents a share to 60 cents a share, compared with its prior view of 52 cents a share to 58 cents a share. [ID:nWNAB5368]

The company lowered the higher end of its revenue view by $3 million to a range of $95 million to $97 million. (Reporting by Savio D'Souza in Bangalore; Editing by Gopakumar Warrier)